Lessons From the Case Of the Invisible Picasso

Many art collectors try to avoid paying sales tax, capital gains and, ultimately, estate taxes. They craftily build collections below the radar by paying cash, using money orders, and shipping art to states that don't collect sales tax. Many also never insure their works and, if they do insure them, pay cash or use money orders to avoid leaving paper trails. But complications inevitably arise when

Many art collectors try to avoid paying sales tax, capital gains and, ultimately, estate taxes. They craftily build collections below the radar by paying cash, using money orders, and shipping art to states that don't collect sales tax. Many also never insure their works and, if they do insure them, pay cash or use money orders to avoid leaving paper trails.

But complications inevitably arise when artwork is transferred to the next generation using the “empty hook” method of estate pl

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