Introduction
For many UHNW families, art is one of the most important and complex assets they hold. Unlike traditional investments, art carries financial value, cultural significance, and emotional weight. Managing it well requires more than passion; it requires a strategy that aligns with long-term family wealth planning.
At Mercer Contemporary, we partner with family offices to guide collectors through every stage of art ownership – from acquisitions and appraisals to philanthropy and legacy planning. By collaborating with tax accountants, lawyers, and wealth managers, we ensure collections are not only preserved but positioned as multi-generational assets.
“We have worked in lock step with family offices, wealth advisors, tax and legal professionals at the highest levels. We ensure that ‘art as a financial asset’ and the ‘owner’ is protected and gains are maximized at the point of deaccession” – Nicole Bray, Mercer Contemporary.
1. Why Art Matters to Family Offices
Art is increasingly central to family office planning because it:
- Represents significant wealth – often rivaling real estate or private equity holdings.
- Requires specialized management beyond traditional financial expertise.
- Carries unique risks – from physical damage to market volatility.
- Offers opportunities for philanthropy and cultural legacy.
Without a clear strategy, art collections can become a burden to heirs rather than an asset.
Related: Legacy Planning with Art: Preserving Collections for Generations
2. The Role of an Art Advisor in Family Offices
While family offices bring expertise in finance, tax, and estate law, art requires a specialist. Advisors help by:
- Defining a collecting vision – ensuring acquisitions reflect family values and legacy goals.
- Market intelligence – providing data and analysis on value, liquidity, and trends.
- Access – opening doors to galleries, auction houses, museums, and private sales.
- Collection management – coordinating shipping, insurance, conservation, and storage.
- Philanthropy strategy – guiding museum donations and cultural placements.
At Mercer Contemporary, we act as a partner to family offices, ensuring collections are managed with the same rigor as financial portfolios.
3. Multi-Generational Challenges
Families often face unique challenges when art passes across generations:
- Differing tastes – heirs may not share the same passion for art as the original collector.
- Liquidity needs – some family members may prefer to sell, others to retain.
- Complex valuations – art values can fluctuate significantly over time.
- Disputes – without clear planning, art can create tension within families.
A thoughtful strategy prevents heirs from being left with difficult decisions about what to keep, donate, or sell.
4. Building a Multi-Generational Strategy
Family offices that manage art effectively take a structured approach:
- Appraisal & Documentation
- Comprehensive, USPAP-compliant appraisals to establish baseline values.
- Inventory management to track provenance, condition, and market data.
- Comprehensive, USPAP-compliant appraisals to establish baseline values.
- Collection Strategy
- Define which works fit long-term family goals.
- Identify works better suited for deaccessioning, sale, or donation.
- Define which works fit long-term family goals.
- Philanthropy & Museum Engagement
- Collaborate with galleries and estates to place works in museums.
- Explore fractional or promised gifts that reflect family legacy.
- Collaborate with galleries and estates to place works in museums.
- Tax & Estate Planning
- Structure gifts and transfers in collaboration with accountants and lawyers.
- Minimize estate taxes while maximizing cultural and financial impact.
- Structure gifts and transfers in collaboration with accountants and lawyers.
- Education & Engagement
- Introduce younger generations to collecting values.
- Provide opportunities for heirs to join museum boards, acquisition committees, and collector groups, strengthening both knowledge and networks.
- Introduce younger generations to collecting values.
Related: How to Donate Art to a Museum: A Collector’s Guide
5. The Benefits of Early Planning
Families that integrate art early into their wealth planning benefit from:
- Reduced tax burdens through well-structured donations and transfers.
- Preservation of value through conservation, insurance, and professional management.
- Stronger family unity by avoiding disputes over inheritance.
- Enhanced cultural legacy by ensuring works live on in institutions or within the family’s collection.
Why Mercer Contemporary
Mercer Contemporary works with family offices to:
- Provide credible, USPAP-certified appraisals accepted by insurers and the IRS.
- Advise on acquisitions that combine cultural resonance with long-term value.
- Collaborate with lawyers, accountants, and wealth managers to integrate art into estate and tax planning.
- Facilitate museum relationships, philanthropic strategies, and legacy placements.
- Ensure absolute discretion and privacy in all family transactions.
Conclusion
Art is unlike any other family asset: it tells a story, reflects cultural values, and can define a legacy. But without careful planning, collections risk becoming fragmented or diminished over time. By working with an art advisor alongside trusted tax and legal professionals, family offices can ensure that art serves as both a financial asset and a cultural inheritance for generations to come.
Mercer Contemporary offers art advisory, fine art appraisal, and legacy planning services for family offices and UHNW collectors. To explore multi-generational strategies for your collection, please contact us.