What Happens If You Inherit Gold?
Beneficiaries who inherit gold may need to decide whether it should remain theirs or be sold off, according to applicable rules and guidelines. They will have to consider both options when making this decision.
Beneficiaries may benefit from seeking professional guidance when it comes to inheritance taxes and precious metals, including inheritance taxes and appraisal services such as those provided by Scottsdale Bullion & Coin. We offer consultations and appraisals.
What to do with your gold
Although some individuals may opt to sell their gold inheritance, others may prefer keeping it. Either way, it’s crucial that they understand how taxes apply to such precious metals that come their way.
Investment gold (coins or bars) usually doesn’t fall under inheritance taxes, but if you plan to give other valuables as inheritances to loved ones, consider getting them appraised professionally first.
Also, creating a treasure map so your children can quickly locate your precious metals is highly recommended if your loved ones reside in states with estate taxes – this way your loved ones can avoid paying a hefty tax bill down the line and prevent unnecessary confusion among heirs about how your inheritance should be divided up among them. A notarized map will ensure your wishes are carried out by all.
Beneficiaries should understand what taxes they will owe when selling precious metals, as this will help them decide how much to sell it for and whether it is worth their while.
At the same time, it will allow them to plan ahead for their future. For instance, they could set up a trust to avoid inheritance tax and other forms of taxes; or work with a gold dealer to get an accurate appraisal of any coins they’ve inherited so they know their true worth.
Gold inheritances generally are exempt from state inheritance taxes; however, there may be exceptions. For instance, if the person who passed away bought their gold prior to 1 April 2001 and purchased it at its original purchase price; otherwise it can be valued as its fair market value on 1 April 2001. Nonetheless, inheriting gold can be an excellent way to grow investments while saving on taxes.
Precious metals are known as stores of value and used to preserve wealth. Your loved one likely purchased these precious metals with the intent that they would provide reliable financial holdings for you as an inheritance recipient. It’s essential that if you opt to hold any gold and silver coins or bars as part of their inheritance portfolio, that you have them professionally appraised prior to receiving any inheritance money from these assets.
You should do this in order to accurately determine your cost of acquisition for tax purposes. A fair market value can be determined by looking at what price a willing buyer and seller trade under normal conditions – without feeling pressured into either side and both possessing knowledge of relevant facts.
Establishing an Estate Plan that details how you wish your assets – such as gold and other precious metals – to be distributed can help avoid probate proceedings and legal disputes after your death, and also provides you with the chance to pass them along while alive to your family members.
Inheriting precious metals can be an excellent way to diversify your portfolio and protect against inflation. But before making any decisions regarding storage options for these assets, it’s essential that you carefully consider all the risks. Storing multiple locations will reduce theft or loss from any single site.
Alternately, you could store the gold you inherited in a safe deposit box or with a reliable precious metals dealer who offers vaulting and insured shipping solutions.
Liquidate your inherited gold and precious metals for cash or transfer them into another asset class. Make sure that when selecting a buyer, that reputable and knowledgeable individual ensures you receive top dollar for them; just avoid any “cash for gold” companies which exploit the innocent.