How to Uncollect....

[cabowen]

As mentioned in another thread, we as collectors are constantly talking about how best to collect. Eventually our collections leave our hands, one way or another. Not much has been said about the best way to handle the end game, which, for a true collector (being primarily concerned with preservation) should be every bit as important as the act of collecting.

 

Obviously few find any joy in contemplating the end but I believe it is important for all to prepare for the inevitable. Making things as easy as possible for those tasked with the dispersal, as well as protecting (at the very least) the investment one has made, are primary objectives. How can we accomplish both tasks, which may at times be at odds with one another? Obviously, the size and value of the collection will dictate to some extent what is the most advantageous route to take.

 

I have witnessed several strategies over the years:

 

1. Do nothing. Let the survivors sort it out.

 

2. Sell off before the sun sets.

 

3. Leave the sell off to a third party.

 

4. Donate the collection.

 

5. Leave the items to a family member with a strong interest in preserving the collection.

 

6. Designate a dealer to buy the lot for a previously agreed price.

 

7. Bury it with you.

 

Since I am concerned with meeting the goals specified above, I will rule out numbers 1 and 7 for further discussion as both routes are obviously the worst choices possible.

 

Looking at number 2, selling off while alive, has many advantages. One disperses the collection on one's own terms and avoids shifting the responsibility to those without the knowledge or experience to properly deal with it. The downside is two fold: one usually never knows when the end will come and thus timing can be a real issue. The second problem is also one of timing-selling into a down market can be depressing...

 

Despite the problems with this approach, it makes a lot of sense. One doesn't have to divest an entire collection, but surely downsizing a massive accumulation into a handful of favorite items, most likely the cream (which is always easier to value and sell) would greatly simply the task for one's heirs. In this light, this is perhaps my best suggestion.

 

A twist on this approach is to arrange the sale of ones items ahead of time. That is, compile a list of interested parties at agreed prices for items in the collection, along with contact info. This is passed along to the family who makes the necessary contact when the time comes. This is potentially a very good solution as well.

 

Number 3, leaving the task to a third party, in theory, seems sound. However, in practice, it usually fails terribly. By third party, we can choose between an auction house or a trusted friend who is usually a fellow collector. Auction houses take a large percentage and usually will only be interested in the choicest of items. While easy, it is hardly the way to maximize return to one's heirs. It is usually only an option for a high level collection, which many do not have.

 

Leaving the dispersal to a trusted friend is often the route that is chosen, either actively by leaving instructions to the heirs, or by default when chosen by the "in over their heads" heirs who are flopping about looking for a solution when a buddy appears.

 

While I have seen this approach used many times, it is usually fraught with conflicting interests and the frailties of human character. Most of the time, the results are not in the best interests of the former owner and the heirs. There are exceptions and exceptional friends, but all too often I have seen things that have left me disappointed with human nature.

 

I would only go this route with strong control remaining in the hands of the heirs to supervise the sales and with price and value guidelines provided by the former owner for the family to follow. Even with these in place, it is a burden on the family and can lead to a lot of stress, trouble, and hard feelings. Even the best of friends can go off the road and we all wish to believe our buddy will do right... In that light, I would consider this very carefully.

 

Donating the collection, given the tight budgets, lack of conservation knowledge, and low interest levels at most Western museums, makes this a poor choice in most minds. Most collections are not of the quality sought by museums capable of understanding what Nihonto require in any event. Those that are, perhaps considering a Japanese museum might be a reasonable avenue to explore. This should be done before death to iron out any issues that may present themselves (import costs, shipping, etc.). Personally, I think those with exceptional items and considerable wealth might give this route some serious consideration. It is one way to ensure conservation and appreciation going forward. Returning swords to their native land has a certain nobility to it as well.

 

Ideally, we would all have a child or even children in whom we have cultivated a deep love and respect for nihonto such that they would pick up where we have left off. Unfortunately, we almost never see this. Clearly, if one hopes to choose this route, one needs to start the cultivation at an early age!

 

Lastly, I know of several collectors who have recorded each of their items, along with a ballpark value, and the names and numbers of dealers to contact when the time comes. Ideally, collectors will have met previously with these dealers and set the values together, along with a family member so there are no "misunderstandings" down the road. Of course this relies on the integrity of the dealer to honor his previous agreements, which has been known to be an issue in many cases. With these safeguards in place, this is another reasonably good approach.

 

So, in summary, the dispersal of a collection should be given the same thought and effort that went into the assemblage. We all want to be sure that our treasures are preserved by their next caretaker while minimizing the burden on our heirs. At the same time, we want to see that our investment is not squandered and that our heirs get all that they are entitled to. Toward that end, I recommend proactively planning the ultimate dispersal of one's collection while one is still capable of doing so. If I was of advanced age or in ill health and without an heir with a deep interest in my collection, I would consolidate my collection to a handful of items. Those items that remain, I would pre-sell to either collectors or dealers, and record these agreements. Alternatively, if my collection was important and I had significant financial means, I would give serious thought to donating the items to a Japanese museum that specializes in Japanese swords.

 

Other ideas?

[christianmalterre]

Dear Chris

i do honour your´s feeling and taking time to write this up a very lot!

Well aware in fact due fact i do know both sides of that spoken medal.

Reality will but not ben predictable.

Best way-me personally think-is to stay cool and patient/someohow same attitude you do act as an active collector equally.

I but agree with you!-It´s not that easy undertaking....and you are right

But?(Question)

Why then we do collect?

Is it for ourselfes?-or rather for what?...Pleasure!-that´s all in fact i think...

You may call it devotion sometimes(maybe)?(for those crasy like myself i do confess)-Principle is but same...it will not change,nor care.

Why worry?

 

Christian

[Alex A]

Reading this really as made me think. I dont have a large collection and it isnt a partcularly expensive collection, however at the moment, all i have are the shinsa papers. To the family, that would be no use, they would need everything set out so that its easy to comprehend, photos, values, contacts and information on how to go about selling them, if thats what they wish to do. I will hope the lad continues with his interest, sounds like it will save me the work :D

 

Alex.

[cabowen]

Why worry?

 

Christian

 

Thank you for the response....

 

I suppose the answer to "why worry?" is because having spent a major part of my life collecting these swords, I wish to see that they, as well as others, are disposed of in a way that creates no trouble for anyone, that they hopefully go to someone who will preserve them, and that the money I have spent returns for the most part to my heirs so they can blow it all, hopefully on something other than whiskey and hookers....

[christianmalterre]

Chris,

i see and do agree fully!(what else?)...

Me myself,at least,took decision so to keep it going on as i wrote above.

And Still i do have mine very personal pleasure with-will certainly keep on going also...LOL!

Very hearthly!

Christian

[IanB]

Having collected for some 50 plus years there are bits and pieces all over the place as well as being concentrated in my armour room. I know my two sons are terrified by the idea of having to deal with it all when I finally fall off the perch. One thing I did do, whilst being treated for cancer (which concentrates the mind wonderfully) is to start a file of photographs and descriptions of the major items with a general idea of what they are worth. Although I did manage to cover a reasonable amount of ground, there are still a hundred and one bits and pieces that need to go in it, but every time I think about getting back to doing it something else distracts. I have sold off a few minor bits and bobs of late, but couldn't bear to part with armours I have owned for nearly 50 years - they are too much like good friends. Perhaps it should concentrate on the minor bits, in themselves not terribly valuable, but aggregated would be. The major pieces are obvious.

Ian Bottomley

[Surfson]

Thanks Chris for a thoughtful post. First and foremost, you can always give your swords to me or name me in your will - I just want to get that piece of generosity out there :lol:

 

Seriously, I have thought about this, as my two daughters have no interest in my collection, and it is large, with many swords, fittings, books and related materials. I am planning on the orderly choice - selling most of it before I leave this mortal plane (perhaps keeping just a few choice pieces with explicit instructions for their disposition). Having said that, one never knows when a Chicago Transit Area bus will find you in a crowd and leave your heirs to fend for themselves. For now, I have not made plans for that outcome, other than telling my kids to take it all to Sotheby's. Donation is pretty much a non starter, as there are already collections much better than mine languishing in the back rooms of several museums. Museums generally are not that interested in displaying Japanese swords in the US for some reason. Cheers, Bob

[seattle1]

Hello All:

Very well put Chris! I have been in this game for some years and I believe I have seen all the options you mention, except for co-burial, and permutations thereof.

If I could comment on one option you did mention, that of a dealer dispersal, it would be to suggest that while the collector might utilize prior consultation with the dealer along the lines you mentioned, the acquisition of an arm's length dealer appraisal, without necessarily subsequent strings, could also be considered. That would involve an up front fee, perhaps one already spent in an insurance appraisal, and it might remove a perhaps unconscious bias in that the dealer has no necessary expectation of business down the line.

I am glad you did mention dealers as it seems to me that too many collectors view them with some disdain. They are valuable market makers and can be as useful in the life hereafter as when the collector is building his collection. They can considerably improve market efficiency by knowing, as they often do, the tastes and preferences of prospective buyers. Auction houses can "spread the word" too, but they can be highly inefficient, destructive of property in their care, and very costly.

Cheers,

Arnold F.

[Ken-Hawaii]

Why worry?

 

Christian

 

Christian, we are really just custodians of our Nihonto, right? Unless we do something really stupid, our blades & other items will long outlive us, & I believe they should be cared for the same way we do for our kids & grandkids.

 

Chris, your post is about as timely as it could possibly be. I'm recovering from two major surgeries last month that really got me thinking about my longevity, & has my wife & me discussing this very topic. Our collection likely isn't as extensive as yours, but with a papered Kiyomaro, Norimitsu, & Enju, it's certainly not trivial, either.

 

During my long recovery, I've created a spreadsheet listing each item in our collection along with what we paid, an approximation of market value, whether it is papered, & a bunch of photos. Then I tagged each item & its origami against the spreadsheet. This will at least allow our son (our Executor) to have a general idea of what he's inheriting. Our family situation is interesting: our daughter-in-law, Yoko, is Japanese from the vast Yoshida clan, which has been a great source of support. When my wife & I started iaido training for example, the clan bought both our iaito for us, which came as quite a surprise at the time. Although Yoko is quite interested in our Nihonto, neither she nor our two grandkids who live locally are particularly interested in studying our blades. But I am wondering whether we should offer any of our collection to the Yoshida clan, not to mention how we would go about doing so.

 

Thank you for a well-thought-out post, Chris.

 

Ken

[Stephen]

one of the better post to come down the pike in some time

[raiden]

we usually advise clients to have am appraisal (formal one), thus leaving the said appraisal with a will or any similiar docs. Works well enough, and usually we advise on the more important pieces......at least there is an idea of both importance and value.

ex: number 151 - katana signed Koyama Munetsugu, 70 cm ubu 1 hole dated 1858 NBTHK Tokubetsu Hozon, polshe dby Shinozaki san, fully restored in shirasaya mounts on tsunagi. appraised market value as of May 2013 - $21,500. any additinal notes blah, blah , blah......

[cabowen]

I find appraisals important but problematic when it comes to their usage by heirs selling off a collection....

 

Undoubtedly, one needs to have some idea of value, but there are many factors which make an appraisal of limited utility for an heir:

 

1. The appraisal is only as good as the appraiser. There are very few people capable of giving an informed appraisal for Japanese swords. Most are dealers and there can be conflicts of interest.

2. When was the appraisal done? Have things changed since?

3. What type of appraisal was done? For insurance? Retail value? Wholesale value?

 

In the end, I have grave doubts that few would pay appraised value at a liquidation sale. Everyone wants a "deal", This can cause a great deal of grief and frustration for heirs trying to sell off based on an appraised value. It can create artificial expectations that cause headaches for both buyers and sellers.

 

I would suggest recording and passing along the price paid for an item, plus any additional costs incurred. It also helps to keep a record of similar sales and comparables to give an informed ballpark value range.

 

Better yet, I wouldn't task the rels with selling off a collection in the first place.

[raiden]

Well, all I can tell everyone is what we usually get called to do in the case of a collection. True the appraisal is only as good as the appraiser, actually I believe that dealers (professionals that do this for a living) have a good idea of what the current fair market values are. They buy and sell items all the time giving them a very good sense of current values. Websites also aid in this as many dealers now have web "storefronts" with possible identical items offered for a value. For example if you see an item similar to yours, then print the page and keep it with your records. As for conflicts of interest, as in our case, we give both what is the current fair market retail and wholesale values in our opinion. We also tell the clients to check other sources as it is easy to do so these days with a computer.We haven't had any conflicts that we know of so far when doing appraisals.

We also recommend like Chris had stated about keeping good records such as cost of an items and any expenses incurred (polish, shinsa , etc..). Also it is a good idea to keep all original kanteisho in a safe place, and copies in a separate place.

Many times in the case of a large collection, we just recommend to the "heirs" to contact the major auction houses such as Bonhams or Christies to get some help in selling their items, but we warn them that they are not always easy to deal with.....

And yes I agree, many people are looking for a deal, especially if the owners want to sell the whole lot at once. But, I don't see any harm in having an appraisal ( a fairmarket value type) along with the cost records to have an idea of what each item should be sold at, when it comes time.

For me , I will leave all the info clear and concise with the family lawyer so there is no difficulty - mine is easy as the kids get most of it anyway......but one tsuba will go with me!

and yes I wouldn't task the relatives either...

[drbvac]

Kind of sobering topic but of course necessary and all good advice. That said probably something we all should take care of much sooner than later. Everyone will have a different perspective of why they collected as will their heirs as to whether they will maintain and keep the Nihonto or dispose of to but in either case a well prepared itinerary and evaluation of the pieces of course makes a lot of sense.

 

I agree that the preservation of these treasures for millennia is the most important long term goal but one would hate to see anyone lose money by dumping their inheritance. Perhaps rather than the new appraisal at the very least what the item cost would put some perspective on it.

 

At least then there would be not a horrendous loss and some newly would get a deal. Another option, if ones main goal is preservation give them to a young keen interested, invested connoisseur who would love even the thought of having such a blade.

 

Many variations on a theme - don't put it off.