Because du Pont’s stamp collection sold his assets were quickly calculated and taxed, but what happens if the marketplace for the collectable no longer exists? This was the case in the estate of Huguette Clark, whose estate’s estimated value was upwards of 300 million and includes a Stradivarius Violin. The violin however did not receive anywhere close to its estimated 10 million dollar worth when put to bid. This is due to the fact that the instrument held no clout in a marketplace that was recently flooded with pricy pieces. This significantly lowered the Clark estate by about 10 million. In this circumstance, the collectables remain in limbo and cannot be taxed until they are sold.
For those with collectables, it is important to consider the market in which they will be sold, and just how much it can fluctuate.