A Visual Artist's Guide to Estate Planning
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A VisuAl Artist’s Guide to estAte PlAnninG the 2008 supplement update Sponsored by The Marie Walsh Sharpe Art Foundation and The Judith Rothschild Foundation Edited by Barbara T. Hoffman A Visual Artist’s Guide to Estate Planning The 2008 Supplement Update Sponsored by The Marie Walsh Sharpe Art Foundation and The Judith Rothschild Foundation Edited by Barbara T. Hoffman, Esq. Special Note: Appendices may be downloaded from the Supplement and A Visual Artist’s Guide to Estate Planning by clicking on the “download pdf now” option listed in Appendices in the table of contents. A Visual Artist’s Guide, the Supplement, and Appendices may also be down- loaded from the website. Go to: http://www.sharpeartfdn.org © 2008 by The Marie Walsh Sharpe Art Foundation Version: 072008 A Visual Artist’s Guide to Estate Planning Part I Copyright 1998 by The Marie Walsh Sharpe Art Foundation Part II Copyright 1998 by the Association of the Bar of the City of New York The 2008 Supplement Update Copyright 2008 by The Marie Walsh Sharpe Art Foundation No part of this publication may be reproduced by any means for commercial use without the written permission of the publisher. For more information contact: The Marie Walsh Sharpe Art Foundation 830 North Tejon St., Suite 120 Colorado Springs, CO 80903 (719) 635-3220 http://sharpeartfdn.qwestoffice.net The 2008 Supplement Update is distributed with the understanding that The Marie Walsh Sharpe Art Foundation, The Judith Rothschild Foundation, the Association of the Bar of the City of New York, and the authors are not engaged in rendering legal, accounting, or other professional service in The Supplement Update of A Visual Artist’s Guide to Estate Planning. If legal or accounting advice or other expert assistance is required, the services of a competent professional person should be sought. Further, the views expressed are the personal expressions of the authors and not necessarily those of The Marie Walsh Sharpe Art Foundation, The Judith Rothschild Foundation, or the Association of the Bar of the City of New York. You are free to download, copy, distribute, and transmit this publication for noncommeri- cal purposes, as long as you include attribution. The 2008 Supplement Update may not be modified, transformed, remixed, adapted, or altered. For any reuse or distribution, you must make clear the terms of this license. To facilitate the networking and exchange of information, The Marie Walsh Sharpe Art Foundation is interested in receiving your comments on the publication and any experi- ences related to this topic. Send your comments and contact information to The Visual Artist Legacy Project (“ALP”)™ at [email protected] . Electronic publication prepared by: Daymon AdDesign • Colorado Springs, CO. Book and cover design based on A Visual Artist’s Guide to Estate Planning, designed by Catherine Sandler. a visual artist’s guide to estate planning: the 2008 supplement update i TABLE OF CONTENTS PREFACE Joyce E. Robinson, Vice President/Executive Director The Marie Walsh Sharpe Art Foundation INTRODUCTION Introduction to the 2008 Supplement Update to A Visual Artist’s Guide to Estate Planning .................................. 1 Barbara T. Hoffman, Esq. Principal, The Hoffman Law Firm PART I: CHAPTER UPDATES TO THE FIRST EDITION Chapter 1: Update to Overview of Tax and Estate Planning ........................................................................ 8 Genevieve Fraiman, Esq. Chapter 2: The Appraisal: Current Issues .................................. 15 Dr. Alex Rosenberg President, Alex Rosenberg Fine Art Chapter 3: Protecting the Intangible Assets of a Visual Artist’s Work: Estate Planning and Management of Copyrights to Create Value and Preserve a Legacy .................. 25 Barbara T. Hoffman, Esq. PART II: ARTIST FOUNDATIONS Chapter 4: Artists’ Foundations .................................................. 40 Victoria Bjorklund, Esq. Thanya A. Polonio-Jones, Esq. Simpson Thacher & Bartlett LLP ii a visual artist’s guide to estate planning: the 2008 supplement update Chapter 5: Reflections on the Survey and Other Musings on the Management of Artists’ Foundations and Museums .......... 51 Barbara T. Hoffman, Esq. Chapter 6: The Roy Lichtenstein Foundation .............................. 73 Jack Cowart Founding Executive Director and Member of the Board, The Roy Lichtenstein Foundation Chapter 7: The Anyone Can Fly Foundation ................................. 94 Faith Ringgold Visual Artist, Chair of the Board of the Anyone Can Fly Foundation Michele Wallace Professor of English, Women Studies, and Film City College of New York and CUNY Graduate Center Chapter 8: Judd Foundation ....................................................... 101 Barbara Hunt McLanahan Executive Director, Judd Foundation PART III: ARTISTS AND THEIR ARCHIVES Chapter 9: Increasing Knowledge and Understanding of Art and Its History: Donation and Sale of the Artist’s, Photographer’s, and Architect’s Personal Archives ........................................... 112 Barbara T. Hoffman, Esq. Chapter 10: Artists and Archives: Making the Match ............. 119 Alison D. Nordström Curator of Photographs, George Eastman House International Museum of Photography and Film Chapter 11: Preservation of Archival Material ...................... 123 Professor Irving Sandler Art Historian and Critic a visual artist’s guide to estate planning: the 2008 supplement update iii Chapter 12: The Archives of American Art ............................... 125 John W. Smith Director, Smithsonian’s Archives of American Art PART IV: APPENDICES TO THE 2008 SUPPLEMENT UPDATE A-1. Pension Protection Act of 2006 ...... Click here to download pdf now A-2. IRS Pension Protection Act of 2006 Revises EO Tax Rules ............. Click here to download pdf now A-3. 5200 Contributions of Fractional Interests in Tangible Personal Property ............ Click here to download pdf now A-4. Council on Foundations—Contributions of Fractional Interests in Tangible Personal Property ........................... Click here to download pdf now A-5. IRS Notice 2006–96 Charitable Contributions— Qualified Appraisal of Noncash Contributions ................................. Click here to download pdf now A-6. Council on Foundations—Noncash Contributions—Qualified Appraisals ...................................... Click here to download pdf now A-7. IRS Form 8283—Noncash Charitable Contributions ................................. Click here to download pdf now A-8. IRS Form 8282 Donee Information Return (Sale, Exchange, etc.) ..................... Click here to download pdf now A-9. IRS Draft—Good Governance Practices for 501(c)(3) Organizations ............. Click here to download pdf now A-10. IRS Letter 3878 (6-2004) Reexamination of Forms 990 .................................. Click here to download pdf now iv a visual artist’s guide to estate planning: the 2008 supplement update A-11_PLR 107951-03 Section 2055-Estate Tax Charitable Deduction...................... Click here to download pdf now B-1. The Digital Millennium Copyright Act of 1998— U.S. Copyright Office Summary ...... Click here to download pdf now B-2. Copyright Term and the Public Domain in the United States ....................... Click here to download pdf now B-3. Orphan Works Legislation .............. Click here to download pdf now B-4. Comments on Orphan Works Inquiry by Goldstein and Ginsburg ............. Click here to download pdf now B-5. Reply Comments on Orphan Works Notice of Inquiry ............................. Click here to download pdf now C-1. S.548 IS—Artist-Museum Partnership Act ............................... Click here to download pdf now C-2. HR1524—Artist-Museum Partnership Act ............................... Click here to download pdf now C-3. Report and Recommendations of Association of Art Museum Directors .................... Click here to download pdf now C-4. Recommendation and Report of the Committee on Art Law of the Association of the Bar of the City of New York ................... Click here to download pdf now D-1. Sample of the Artist Foundation Survey ......................... Click here to download pdf now D-2. The Judith Rothschild Foundation—Grant Program Guidelines ...................................... Click here to download pdf now a visual artist’s guide to estate planning: the 2008 supplement update v D-3. A Listing of Some Deceased Visual Artists’ Foundations Filing 990 PFS, Prepared by Jack Cowart, from Guidestar ............................... Click here to download pdf now PART V: BIOGRAPHIES OF CONTRIBUTORS TO THE 2008 SUPPLEMENT UPDATE ......................................................... 131 Victoria Bjorklund, Esq. Dr. Jack Cowart Genevieve Fraiman, Esq. Barbara T. Hoffman, Esq. Professor Irving Sandler Barbara Hunt McLanahan Alison D. Nordström Faith Ringgold Dr. Alex Rosenberg John W. Smith Professor Michele Wallace vi a visual artist’s guide to estate planning: the 2008 supplement update Preface Joyce E. Robinson Vice President/Executive Director The Marie Walsh Sharpe Art Foundation It was the long-held dream of Marie Walsh Sharpe to support the visual arts by providing financial assistance to the gifted in the field. In June 1984, as the culmination of that dream, Mrs. Sharpe established The Marie Walsh Sharpe Art Foundation, charging it with providing assistance to individual visual artists of demonstrated talent and with providing seminars and workshops for gifted high school students. Mrs. Sharpe died on September 21, 1985. Her will stipulated