estate-and-succession-planning

name	estate-and-succession-planning
description	Use when planning for card collection succession (gift, inheritance, sale). Tax implications matter at $100K+ collections.

Estate and Succession Planning

Tax treatment differs by transfer method: gift, inheritance, charitable donation, capital gain. Plan with attorney + CPA.

Transfer methods

1. Gift: $19K annual exclusion (2026); above triggers gift tax
2. Inheritance: cost basis steps up to fair market value at death
3. Sale: long-term capital gains (typically 28% for collectibles)
4. Charitable donation: deduction at fair market value
5. Estate trust: protects from creditors + simplifies transfer

Cost basis tracking

Maintain:

1. Purchase receipts for every card
2. Purchase dates (long-term vs short-term gain)
3. Improvements (grading fees, shipping)
4. Current valuation (appraisal every 2-3 years)
5. Cost basis adjusted for fees + grading

Tax efficient strategies

1. Step-up basis at death: avoid lifetime sale; let heirs inherit at stepped-up basis
2. Charitable donation: deduct full fair market value, no capital gains
3. Spread sales over years: keep below 28% rate threshold
4. Like-kind exchange: not applicable to collectibles (post-2017 tax change)
5. Trust structures: explore with tax attorney for $500K+ collections

Where this fits in the X3 empire

Customer-facing FAQ for high-value collection management.