My father loved the sea. By extension he also loved all sea-related tchotchkes, i.e., model sailing vessels, fake shark’s teeth, lighthouses big and small, cute little fishermen in bright yellow rain slickers. You name it, he had one.
How did he explain this passion? Growing up in western Wisconsin, he was far from the sea. In a former life he believed he was … a whale.
Many years ago, he wandered into an antique store in Florida on the prowl for more sea-related stuff. It was there he found an old, dirty, slightly torn oil painting of a sea vessel. He bought it for $35 and hauled it home to Madison. He sought out a professional to repair and clean the painting. Upon examination the professional told my dad the painting was by a European artist and worth $2,000 to $3,000! The family forevermore referred to it as the “Masterpiece.”
Jennifer O’Neill, William Mitchell 1994, is owner of
O’Neill Elder Law, LLC, Hudson. She focuses on estate planning, elder law, and estate administration.
Fast forward about 40 years, my father moves into assisted living and the Masterpiece moved to my family room. My older brother agreed I would take care of the painting, but I must never sell it. If I didn’t want it, I was to deliver it to him in North Carolina. Of course, we all believed the painting was “valuable” and even more so after the passage of time.
I periodically wondered about the value and did quick internet searches with no luck. One day I read about a family who discovered they owned a VERY VALUABLE painting, like a Rembrandt or some such thing. I thought of the Masterpiece and my blood pressure shot up! What if it was more valuable than we thought? I had never insured it! How would we capture a stepped-up basis? Dear Lord, what have I done!?
I immediately located on online appraisal company and forwarded photos of the Masterpiece with close-ups of the artist’s signature. After a week on pins and needles I got the report: Thank you for reaching out about your beautiful painting … it has an estimated auction value of $100-$150. …
Relief. Disappointment. Relief. Amusement. Relief.
The Lessons
What did I learn?
Family lore is only the beginning when managing tangible assets. Any item can be your masterpiece, but not every masterpiece is worth a fight. And, if you’re not sure, get an appraisal.
What went well?
Luckily, there is no dispute between my brother and myself about ownership of painting. I’m storing it on the wall at my house, and if he wants it, he is welcome to it. Thanks to the appraisal, I am not worried about capital gains tax in the event of a sale.
What would have been better?
Written direction from my dad clarifying who would own the painting after his death and any future hopes for the painting. Even if written direction is not part of a will executed per Wis. Stat. chapter 853, or a written Disposition of Tangible Personal Property per Wis. Stat. section 853.32(2), any written direction is better than none.
What could have gone wrong?
With no written direction, my brother and I could have fought over ownership of the painting. Imagine if we both believed the painting had significant value? We could have spent thousands of dollars litigating.
What if the painting’s value had been greater?
My first step would be to purchase appropriate insurance to protect the value of the painting. Then I would consult my brother, the other heir, about a sale. Our simple verbal agreement worked fine between the two of us, but what about the next generation? I didn’t want to be responsible for the safekeeping of a valuable item. My brother has no children, and we all knew my father wanted the painting to stay in the family. If we honored my father’s wish for the painting, it would result in it coming back to my kids. But which one of my four kids? The cleanest solution would be to sell the painting for cold, hard, easy-to-divide cash.
Final Thoughts
Again, we were lucky. My brother and I love each other and our relationship more than the painting. We both understand and acknowledge our father’s long-term wishes for the painting. And! The family knows the financial value of the painting is incidental.
I don’t know what will finally befall our beautiful painting. I do know it will always be the Masterpiece. Even more, it’s a pretty painting that reminds the family of my dad … the former whale.
This article was originally published on the State Bar of Wisconsin’s
Elder Law and Special Needs Blog. Visit the State Bar
sections or the
Elder Law and Special Needs Section webpages to learn more about the benefits of section membership.
