What is an art trust?

An art trust is a legal document that allows the owner of artwork to give control of it to a trusted third party while retaining ownership of the artwork. This third party, usually called a trustee, is responsible for managing and protecting the artwork for the benefit of a designated party, usually the owner. This trust can be used to keep the artwork to be protected from theft or other harm. It can also be used to provide income for the owner or to direct its sale to a certain individual or organization. In Delaware, art trusts are governed by the Delaware Uniform Trust Code, which was adopted in 1982 and amended in 2005. The requirements for the creation of an art trust in Delaware must be in the form of a written document that is signed and witnessed by two individuals. In addition, the trust must specify the beneficiary of the trust, how the trust is to be administered, and the various powers that the trustee has with respect to the artwork. Art trusts can also be used to provide tax benefits to the grantor, as they can be used to transfer artwork to beneficiaries in lower tax brackets or to take advantage of specific deductions or credits.

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