Bonsai Financial Planning

[PeaceLoveBonsai]

I've been doing financial planning as a business for over 17 years. I recently saw a post here about an individual passing and having their collection put up via auction. It got me thinking about financial planning and bonsai. Do people think about that kind of stuff? Do you think about what would happen to your collection if you passed? Do you have an extra insurance policy that covers your collection or a plan for how your collection will be handled if/when you pass? Or is this particular hobby not have enough value for that type of planning? I know my collection isn't worth much, but I could see down the road there being something worth making sure it went to the right person or persons.

 

[Dav4]

I've considered having my tree and pot collections individually insured for loss but haven't pulled the trigger yet. I have told my wife, in case of my untimely passing, to contact several friends in the biz to appraise and facilitate the sale of my better trees and pots because there is a fair amount of scratch involved.

 

[Anthony]

Our idea was to open a self functional or set of self functional Bonsai Museums.
As someone passes the work is assessed and that which is worth it is saved and
put on display.

This is why we teach, pottery, Bonsai training and beyond.
The idea is eventually, full time employment for those who love Bonsai as an
occupation.
Job comes with housing as well as pay.

Antiques / Genuine Antiques are rare. Folk will however convince their mind that
they paid much and therefore it is worth much.
We don't touch this.
Good Day
Anthony

 

[rockm]

Ya know, it's self-gratifying (and a little egotistical) for bonsai folks to think their trees are worth protecting and handing off to younger relatives.

In the vast VAST majority of cases, the trees are not worth the trouble or extra expense.

Unless they're Japanese imports with better than quadruple digit price tags (and the documentation to prove it), or western trees designed by "notable" Western artists (with accompanying provenance), best thing you can do for them is have your survivors auction them off via the local bonsai club or sell them on consignment through a decent bonsai nursery (which can be an iffy proposition if your trees mostly suck, or if the place doesn't want the hassle).

You will NEVER get an equal return of the cash you've plunked down for them. You are not sitting on an investment that can be instantly or reliably converted into liquid assets. If you think you are, you, my friend, are either stoned or delusional.

You might get some cash for decent pots (IF your spouse/heirs want to put up with the torture of online selling). I ain't got special insurance on my trees and will never have it. Wasted money. If one is stolen, I have receipts for the best ones to show police.

 

[GGB]

I think (95% sure) that my trees are covered by my home insurance because they are within 50 feet of the house.

 

[Ironbeaver]

There's a quote I saw once: "When I die, please don't let my wife sell my pots for what I told her I paid."

That being said, my collection probably isn't worth too much (maybe enough for a high end dinner out, with wine.)

 

[Gene Deci]

Most of my trees are collected and I only have two pots that cost over $100. So monetarily I don't have all that much invested. But I have a ton of time and, I will say, devotion invested and that is important to me. I would prefer if possible that my efforts not be wasted. Like many of us, I have been asked if I would sell this tree or that and I always say they are not for sale. We have all heard it - "They are like my children." - and it is true. I have even had some surprising offers, but I have never been tempted. They have a good home now and when the time comes I hope they go to experienced people who will carry on with them.

So, that goes to the OP's question. When I am gone, what difference does any of that make? Shouldn't my heirs, who have no interest in bonsai, just get what they can for them?

 

[AZbonsai]

Mine is worth a happy meal and a shake.

 

[Brian Van Fleet]

There's a quote I saw once: "When I die, please don't let my wife sell my pots for what I told her I paid."

I made that one!

 

[Adair M]

I have told my kids that if they don’t want my trees after I pass away, contact Boon or Tyler Sherrod or Bill Valavanis or Matt Ouwinga to sell them.

 

[Dav4]

I made that one!
View attachment 165867

I gotta ask... how much did you tell your wife the Ino in the meme set you back? Just comparing notes for future reference.

 

[Tieball]

I think (95% sure) that my trees are covered by my home insurance because they are within 50 feet of the house.

However, similar to jewelry and other collections, I believe you would have to have the trees individually appraised and added as a Schedule on your home insurance policy. A claim representative is very unlikely to accept your own stated value at a time of loss. You have to go through the appraisal process, declare the items, and then pay any additional policy fee if identified as needed to cover as the tree collection. If you’re serious about the insurance it’s best to contact your insurance agent.

 

[Brian Van Fleet]

I gotta ask... how much did you tell your wife the Ino in the meme set you back? Just comparing notes for future reference.

That Ino wasn’t too exaggerated. The blue ones were a slightly different story. Let’s not start on the Gekkou, the Tofu...

 

[miker]

Most of my trees are indeed sticks, even seedlings in pots that I intend to grow out and really give a shot at making them into good bonsai over the course of many years. As such, my financial planning right now centers around being able to afford quality materials along the way to facilitate this goal. Things like quality substrate, anderson flats and other special containers, wire, fertilizer, kick ass pesticides, appropriate benches and other structures on which to keep trees in all stages and of course the materials for proper winter storage. I am sure I am missing some. I think I can swing $50/month average so around $600 per year should be able to cover the materials I hope.

Ooops, the above is why it is important to actually read the original post before typing a reply!

 

[Eric Group]

I think (95% sure) that my trees are covered by my home insurance because they are within 50 feet of the house.

This is what I was going to say- home owners insurance should cover you against theft... obviously there are deductables and it could affect your policy going forward but if the loss were substantial...

 

[PeaceLoveBonsai]

I have told my kids that if they don’t want my trees after I pass away, contact Boon or Tyler Sherrod or Bill Valavanis or Matt Ouwinga to sell them.

Have you ever considered a written buy/sell agreement that outlines your intentions along with a pre-determined process (ie valuatuon and or selling/auction process) that is agreed upon by all parties?

In estate planning, we often see issues where benificiares are unable to process all the info being sent to them. It becomes paralysis by analysis. What seems easy to us (sign here and send back) is overwhelming to certain people. The result is money and investments sit unattended for far too long. In the case of trees, that would become catastrophic. The entire value of the property could be reduced to zero if things aren’t taken care of quickly.

Having intentions spelled out and contractually agreed upon ahead of time vastly improves the estate settling process, in my experience.

 

[RobertB]

There's a quote I saw once: "When I die, please don't let my wife sell my pots for what I told her I paid."

That being said, my collection probably isn't worth too much (maybe enough for a high end dinner out, with wine.)

And the "work trip" to Japan when you bought the pot.

 

[rockm]

Have you ever considered a written buy/sell agreement that outlines your intentions along with a pre-determined process (ie valuatuon and or selling/auction process) that is agreed upon by all parties?

In estate planning, we often see issues where benificiares are unable to process all the info being sent to them. It becomes paralysis by analysis. What seems easy to us (sign here and send back) is overwhelming to certain people. The result is money and investments sit unattended for far too long. In the case of trees, that would become catastrophic. The entire value of the property could be reduced to zero if things aren’t taken care of quickly.

Having intentions spelled out and contractually agreed upon ahead of time vastly improves the estate settling process, in my experience.

I've been in the middle of the process and it is confusing. Having instructions for the executor of the estate on what to do with bonsai would be helpful. However, unless immediate family or friend IN THE AREA actually knows the trees need care in the days following the owner's passing, all of this stuff is moot.

 

[Leo in N E Illinois]

Bonsai Estate Plan
I have a modest bonsai collection and a much larger orchid collection. Think of our collections as perishable produce. Three days with out water and the collection is worth nothing. Next to the phone in the house, and in my brothers house are the phone numbers, on person who will take care of the orchids, one for the bonsai. I had a health issue a decade ago, ended up loosing most of my trees that were in smaller bonsai pots, only nursery stock survived. This precaution is not for the next generation, it is for me. I hate having to start over.

As to value, who knows? I've seen some "home grown" trees that I thought were worth as much or more than some of the high dollar Japanese imports. And they were never touched by a Japanese trained "master". I'm also painfully aware my trees are not worth much more than nursery stock prices, but I enjoy the activity of doing the horticulture, and attempting the artistic side of bonsai.

So make plans now for short term health issues.

 

[GrimLore]

I won't give a damn when I am dead. Honest, our paperwork is done, Wills and such and has nor ever will contain plants. I am to be cremated and "if" there is a memorial stone it will read "Kiss my ashes goodbye".
I have detailed instructions for all hunting and fishing equipment, financial assets, but vague instructions for anything else and most importantly who NOT to leave anything. Hell, as I said I will be dead

Grimmy