The Artful Trustee: Practical Tips For Holding Artwork In Trust Structures

Acquiring artworks, antiques, and other collectibles is a common pastime of private clients, for reasons that can vary greatly from profit-making to maintaining cultural ties, or simply as a general reflection of their interests. It is also a pastime that has become incredibly popular over the past few years with the industry now valued at over US$70 billion.

Having weathered the global financial crisis and more recently the Covid-19 pandemic, many private clients are increasingly looking to invest in "real assets" that are known to maintain or increase in value in the long term. Art very much fits that profile, and with trusts being a favoured vehicle in which to hold such assets, trustees are often asked to acquire and manage artworks as part of their trusteeship. However, in an unregulated and saturated market and with art forgeries on the rise, it is more important than ever to ensure trustees do their research when looking to purchase art.