The Use of Trust Structures for Art Acquisition and Succession Planning

We were recently privileged to host an exclusive private viewing of White Cube HK’s profound exhibition, “Darren Almond – Night before Day,” offering our clients an immersive encounter with art that transcends the conventional.

At FGA Trust, we fully appreciate that while the acquisition of art is frequently driven by passion, the preservation and strategic management of such assets necessitate a meticulously structured approach. Our fundamental objective is to assist discerning clients in transforming their valued collections into robustly protected, dynamically flexible, and perpetually sustainable legacies. These structures are meticulously optimised for both global administration and tax efficiency, catering to your specific intentions—be it eventual divestment, intergenerational transfer, or long-term custodianship.

Acquiring Art Through a Trust Structure

Clients are afforded the option to procure artworks directly utilising the FGA Trust Mastercard, a globally recognised, asset-linked financial instrument that ensures absolute expenditure oversight. Alternatively, our institution can facilitate the acquisition of artworks on behalf of the client through the trust. All transactions, whether conducted at international auctions or through private galleries, are executed under the auspices of FGA Trust, thereby guaranteeing the utmost discretion and complete confidentiality of the principal’s identity.

Divestment of Art Assets

Artworks held within the trust may be consigned for sale at leading auction houses or through discreet private treaty transactions. The ensuing proceeds are seamlessly repatriated to the trust structure, affording the client comprehensive autonomy over their redeployment—whether through further art market participation, investment in traditional securities, direct withdrawal, allocation to designated beneficiaries, or utilisation of the trust card for expenditure.

Intergenerational Transfer to Beneficiaries

Art assets are maintained within the secure confines of the trust, facilitating a seamless and fiscally efficient transfer of heritage across generations. This mechanism proves particularly advantageous in jurisdictions burdened with considerable inheritance tax liabilities, such as Japan, South Korea, and France.