High Net worth individuals are increasingly interested in acquiring art and collectibles, whether it is as a pure investment to diversify from traditional asset classes, or for social and cultural reasons. No matter the driver for the acquisition or holding of Art, it is imperative that the Trustees take a diligent and meticulous approach in the acquisition, ongoing administration and disposal of art.
Due to the complexities involved it is essential to have an understanding of how the industry works, since the art market is arguably the last unregulated market in the world but to also appreciate the importance of understanding the specific details of each collection having regard to:
- Provenance, having detailed strong provenance is one of the most important aspects of holding art, and having robust cataloguing is vital.
- Taxation, on acquisition, when transporting or on sale.
- Storage, ensuring art is kept in the correct environment and is secure.
- Condition reports, on acquisition, whenever the art is moved, and periodically if held in storage.
- Insurance, ensuring the correct type of policy for the nature of the art.
Over time our team have become highly experienced in dealing with art as an asset class, and have encountered many scenarios which means that they will be able to work with settlors and beneficiaries to achieve their objectives. Whether that be through having a robust approach to due diligence gathering on acqusition, or by being alive to the nuances of dealing with institutions to ensure the best result is achieved when lending pieces .
Dominion acts as Trustee to a number of structures with large and varied art portfolios, ranging from antiquities, pottery, photography, old and modern masters and sculptures. We also work with a wide array of advisory firms that can assist in a number of areas such as provenance research, valuations, sourcing institutions to loan pieces, and where necessary can represent the Trustee in transactions.