What Happens If You Inherit Gold?
Acquiring precious metals may be a complex experience, so take time and do research into all your available options before making a decision.
First and foremost, having your gold or other metals appraised professionally should be your first step to making an informed decision. Doing this will provide all of the relevant data.
An inheritance of gold can be an amazing financial gift, but its tax implications must be carefully evaluated. Consult a tax professional or estate planning attorney in order to understand and abide by federal and state regulations regarding your inheritance.
Inherited precious metals are subject to tax just like any investment property. Additionally, capital gains taxes apply when they’re sold. Therefore, it is wise to consult a tax specialist or investment advisor before selling precious metals.
Beneficiaries of gold coins should have them appraised by a trusted precious metals dealer to understand their true value and then decide whether or not to keep or sell the precious metals – selling will generate cash that can be invested elsewhere while keeping allows diversifying one’s portfolio. Whatever option they select, their beneficiaries should ensure their gold is securely stored and insured against theft.
If you plan on passing gold on to your children, the safest approach would be storing it securely in an approved storage location and providing them with invoices and manufacturer’s certificates that detail its weight, purity, serial numbers etc. Doing this may help avoid confusion or disputes later down the line.
Settling gold assets in trust could help reduce inheritance taxes you are responsible for and prevent it from being stolen by burglars.
If you decide to sell your gold coins, make sure you choose a reliable seller who will offer top dollar for them. Beware “cash for gold” buyers who offer low prices; these buyers could damage and mishandle items they receive as payment for them. Furthermore, selling precious metals could expose you to significant capital gains tax; for this reason it would be wise to consult a qualified tax professional first in order to comply with all relevant estate planning laws and regulations.
Due to their value, gold coins require safe storage to prevent theft or damage. Furthermore, it is wise to secure them with insurance against fire, burglary or natural disaster which could potentially reduce risk significantly.
Consider placing your precious metals into a trust to reduce inheritance tax liabilities and fees. A trust attorney or precious metals specialist can assist in setting up such an arrangement so your heirs can enjoy all the advantages of gold ownership without incurring costly IRS fees and taxes.
When selling an inherited asset, it is crucial that you work with a reliable gold buyer that provides fair and accurate appraisals. Furthermore, make sure the seller qualifies to purchase your gold and provides you with an official receipt for tax purposes; this will prevent capital gains tax being calculated on its original cost plus any sales profit from being applied retrospectively to your sale.
Gold coins can be an extremely valuable inheritance that often leaves beneficiaries uncertain of how best to manage. Depending on each beneficiary’s needs and goals, whether storing, selling or moving into another asset class such as stocks or real estate can be the optimal strategy.
Financial advisors and precious metals specialists should advise heirs to consult with an adviser when buying, selling, or investing in physical precious metals. Scottsdale Bullion & Coin offers expert guidance for buying, selling and investing physical precious metals.
Beneficiaries may wish to have their gold and silver heirlooms appraised prior to selling, as this will give them a better sense of their current worth and could help prevent unnecessary taxes in the future. A trusted, reputable dealer such as Scottsdale Bullion & Coin can offer accurate appraisal services.
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