By Paul Sullivan | The New York Times
In life, James A. Elkins Jr., a prominent Houston businessman and philanthropist, amassed a portfolio of art that was the envy of museums and collectors. He owned works by Pablo Picasso, Jackson Pollock, Jasper Johns, David Hockney, Willem de Kooning and other modern greats.
In death, that $35 million collection is the envy of the tax man.
After Mr. Elkins died in 2006, his estate paid millions of dollars in taxes on the art. But the Internal Revenue Service said it was not enough and asked for another $9 million. They have been battling in court ever since.
At issue is how to value fine art for tax purposes — and the estate’s recent victory in an appellate court may help reshape the rules.
Comment by Laura Bianchi, chairman of Rose Law Group Estate Planning/Asset Protection Dept: “This is yet another example of the importance of working with an estate planning and tax professional to ensure every part of your estate has been addressed. No two estate plans are the same, and your estate plan should meet each and every one of your unique and individual needs and goals.”
If you’d like to discuss estate planning, contact Laura Bianchi, chairman of Rose Law Group Estate Planning/Asset Protection Department, lbianchi@roselawgroup.com
