With over $18 trillion in global wealth reportedly being handed down by 20301, the anticipated inter-generational wealth transfer will reshape the economic landscape. In the world of art and cultural objects, this transfer means it is now more crucial than ever for collectors to ensure their assets are not only protected, but also responsibly and thoughtfully passed on. The process of transferring ownership is no longer just about safeguarding physical objects, it also involves navigating a complex and evolving landscape of legal, ethical and moral considerations.
So, what are the key considerations that collectors of art and cultural objects need to consider ahead of passing assets on to the next generation?
Collection management and due diligence
One of the key issues in relation to ownership has always been establishing the history of the object. This has become increasingly complex, as both ethical and reputational considerations for collections have become more public and more international in recent years. This is particularly the case around establishing the ultimate source and country of origin of an object.
The concept of "caveat emptor" (or "buyer beware") has historically been the basis for the acquisition of art and cultural objects. In other words, it is up to the person intending to acquire the object to ask the appropriate questions and piece together the journey to its current owner, in order to establish if there could be any issues arising from acquiring ownership.
However, this approach when the transfer is made to a younger family member (or, indeed, a trust set up for future generations' benefit) is not ideal. Under these circumstances, the collector should consider what steps they can take before passing on the object in order to make future ownership stress-free.
Therefore, to future-proof collections, collectors should use the growing number of resources at their disposal to access information regarding the origin of their objects, and make the relevant enquiries to obtain as much knowledge as possible. If this information has not been recorded by the current generation, it can become more difficult for future generations to fill in the gaps and trace the history of an object when first-hand knowledge about the original acquisition may be lost.
In addition, best practice in collection management includes taking steps, such as creating an inventory with descriptions, photographs and purchase information. Ideally, these details would also include copies of invoices or other documentation which accompanied the original purchase. Furthermore, a collector should consider providing clear instructions regarding division of ownership of the collection, especially if there are multiple heirs, so as to avoid confusion or arguments in the future.
Some examples of proactive steps a collector can take to unearth an object's biographical details include: reviewing historic collections or catalogues; verifying authenticity documents; checking registers (such as the Art Loss Register); examining import and export documentation; identifying potential issues around ivory or CITES; and consulting independent experts to assist with research. This should inform and help to build a working database of documents and knowledge about each piece, and prompt any further investigations necessary.
However, the requisite documents and evidence for due diligence are not necessarily standardised. Collectors should be alive to the fact that there can be notable differences across the facets of the art market and under different jurisdictions.
For example, for any collectors considering the transfer of pieces to a family member in the EU, as of 28 June 2025 cultural goods created and discovered outside the EU and subsequently imported into the EU require documentary evidence to show that they were lawfully exported from their country of origin. Historic licences or shipping documents evidencing such export may no longer exist and could therefore cause difficulty for the intended transfer.
Shifting expectations over provenance
Provenance - the history of the ownership of an object - is an increasingly important aspect of due diligence. As evidenced by the number of claims arising in the last few decades from art looted during the Holocaust, the consequences of dubious provenance can be very public and damaging to the collector's reputation.
Now added to this is the growing discourse surrounding the ethics of antiquities and international cultural heritage. There are increasing calls for repatriation of cultural artefacts taken during the colonial history of a country, such as the Benin Artefacts. Collectors should also be mindful of a country's ability potentially to retain or seek to recover cultural goods that they deem to be of historical significance. This process can be quite complex and nuanced, as claims to origin can be multi-faceted.
In addition to legal considerations of possible claims by previous owners, ethical considerations demonstrate the shifting expectations by which future owners may feel morally obliged to return "tainted" objects to their country of origin. For the increasingly philanthropic next generation looking to loan cultural artefacts to a museum or gallery, the impact of a claim for restitution or repatriation can have serious repercussions on both the object and the owner, so it is wise to check everything is copacetic beforehand.
Other considerations
Charitable status
If a collector is a charity, trustees must carry out enhanced due diligence to ensure the provenance of items, and manage assets in line with their legal duties under charity law. This includes checking that items have not been acquired unlawfully or unethically, as failure to do so can lead to legal or reputational risks. When repatriating artefacts using the ex gratia regime - a transfer made out of moral obligation rather than legal obligation or power - charities generally need Charity Commission consent under section 106 of the Charities Act 2011. Updates to this regime under the Charities Act 2022, that will make it easier to carry out less valuable transfers without Commission consent, are currently on hold while the government decides whether certain national museums and galleries should be excluded from these updates. The Department for Culture, Media and Sport (DCMS) liaises with organisations that may fall within this exclusion, offering guidance to ensure compliance.
Tax
Further, while individuals in the UK are liable to pay inheritance tax on their chargeable estate, gifts to registered charities or exempt institutions on death pass inheritance tax free, and a reduced rate of inheritance tax is payable on estates that leave a certain percentage of the net estate to a charity registered in the UK. Collectors can also benefit from specific tax reliefs for gifts of art or cultural objects to tax exempt UK public institutions, such as the acceptance in lieu scheme, the cultural gifts scheme or private treaty sales. These should be taken into consideration when planning the distribution of one's collection.
A pleasure not a chore
Collecting should, first and foremost, be a pleasure. Inheriting and growing a Wunderkammer of treasures that ties together an ancestral lineage is a special way of connecting the past and present. If done carefully and diligently, family heirlooms can pass seamlessly from one generation to the next, telling stories old and new, for centuries to come.
1 The great wealth transfer (subscription required)