The dealer and wills: when a collector bequeaths their works

01The legal framework for transmitting artworks in France

Under French law, artworks form part of the deceased's estate and are subject to the succession rules of the Civil Code. The testator may dispose of their assets within the limits of the freely disposable portion, which varies according to the number of forced heirs. Artworks may be bequeathed specifically to a museum, a foundation, a relative or any other legal or natural person designated in the will.

The dation en paiement constitutes a mechanism specific to French artistic heritage. Established in 1968 and codified in Article 1716 bis of the General Tax Code, it allows heirs to pay inheritance tax by surrendering to the State artworks, books, collector's items or documents of high artistic or historical value. This procedure, which has enabled the entry into national collections of major works by Picasso, Cezanne, Chagall and Matisse over the decades, requires an evaluation by an interministerial commission that rules on the heritage interest of the proposed works and their value.

The dealer is often called upon in this process, either to provide market value estimates for works in the collection or to advise the collector or their heirs on the most advantageous transmission options. This advisory role, which extends beyond the dealer's strictly commercial function, demands thorough knowledge of applicable tax and legal mechanisms and, most often, collaboration with notaries and lawyers specialising in estate law.

02The impact on the artist's market

The death of a major collector and the dispersal of their collection can have significant consequences for an artist's market. When a large number of works by the same artist arrives simultaneously on the market, the excess supply can exert downward pressure on prices. The dealer representing the artist concerned has a direct interest in the succession being managed in an orderly manner, avoiding a hasty and massive sale that would destabilise the market.

Galerie Marian Goodman, representing artists whose works feature in major private collections worldwide, regularly confronts the question of succession management. Galerie Lelong, which worked with artists such as Joan Miro and Antoni Tapies whose works are present in thousands of collections, has developed particular expertise in supporting collectors' heirs. These examples illustrate that the succession question is not marginal in a gallery's activity but constitutes a recurring issue with considerable financial and relational implications.

03Supporting the collector during their lifetime

The prudent dealer does not wait for the collector's death to broach the question of transmission. This conversation, which may seem delicate or intrusive, is an integral part of the service the dealer owes their most committed clients. A collector who has built a coherent body of works over the years often has a precise vision of what they wish for their collection after they are gone, but does not always have the appropriate interlocutors to realise that vision.

The dealer can accompany the collector in drafting a detailed inventory of their collection, an essential document that will facilitate the work of notaries and heirs when the time comes. This inventory should include for each work the title, artist, dimensions, technique, year of creation, provenance, acquisition price and an estimate of current value. Galerie Templon, which maintains long-standing relationships with certain collectors, has developed expertise in documenting private collections that constitutes a high-value-added service.

04The heirs and the gallery: a relationship to build

The death of a collector often places the gallery before new interlocutors, the heirs, who do not necessarily share their relative's passion or knowledge. Some heirs wish to keep the collection intact out of faithfulness to the deceased's memory. Others wish to sell quickly to settle inheritance tax or simply because art does not feature among their interests. Still others find themselves in an intermediate position, wishing to keep certain pieces and sell the rest.

The dealer must approach this relationship with the same quality of listening and advice they would afford a new collector. The temptation to push for a quick sale, generating immediate commissions, must be counterbalanced by concern for the long-term interests of the heirs and the artist's market. A well-advised heir who feels respected in their choices and supported in their discovery of the art market may in turn become a loyal gallery collector.

05The challenges of valuation in the succession context

Valuing artworks within an inheritance is an exercise that engages the dealer's responsibility and can become a source of tension between different stakeholders. The tax authority, heirs, legatees and potential buyers have divergent interests regarding the value attributed to the works. A valuation that is too low reduces inheritance tax but may disadvantage heirs in the event of a later sale. A valuation that is too high increases inheritance tax and may make works difficult to sell if the heirs wish to part with them.

The dealer asked to provide a valuation must clearly distinguish between market value, reflecting the price the work could achieve under normal market conditions, and replacement value, corresponding to the cost of acquiring a comparable work.

06The ethical dimension of succession management

Managing an artistic succession places the dealer before ethical dilemmas that do not always have simple answers. Respecting the deceased's wishes may conflict with the heirs' interests or with the stability of the artist's market. The confidentiality surrounding transactions in the art world adds a layer of complexity to already delicate situations. The dealer must navigate between loyalty to the departed collector, duty of advice toward the heirs, and responsibility toward the artist whose works are at stake.

For Artedusa partner galleries, the platform offers a documentation and visibility tool that facilitates the work of inventorying and valuing collections. By presenting works in a professional catalogue accessible online, Artedusa contributes to the traceability of pieces and market transparency, two essential qualities when the time comes to manage the transmission of a collection.