While much has been discussed about the intergenerational transfer of traditional assets, such as investments and family businesses, there has been relatively less spotlight placed on collectibles. A new HSBC reports highlights several key factors for combining passion with purpose.
The global collectible market is expanding and evolving worldwide, particularly in Asia, with many high net worth and ultra-high net worth individuals increasingly building large private collections in art, cars, ceramics, and memorabilia. And the value of such collections in certain cases is skyrocketing with an Action Comics #1 issue purchased in June 1938 for 10 cents selling for a record-breaking $15 million in January 2026.
Given both their monetary and personal value, collectors are beginning to consider about how to handle such items when transferring them to the next generation. According to a report by HSBC entitled Collectibles: Having purpose and passion, collecting often kicks off organically but “practicalities become increasingly important as collections grow in scale and significance, including the need for logistics, storage, installation and maintenance”.
Audits, communication and formalisation
Given the complexity of building, maintaining and passing on such passion assets, the report stresses the importance of three key considerations for collectors.
First, conduct informational audits by cataloguing and appraising passion assets on a regular basis, ensuring heirs know where assets are located and how to gain access when required. Second, maintain communications with children through an open dialogue about the purpose of the collection with a clear understanding of whether the wish is for assets to be kept intact, divided, retained, donated, placed on public display, or sold. Third, collectors should consider formalization of plans by incorporating passion assets into wider estate planning to avoid the risk of disputes between heirs. This can also help significantly reduce legal, logistical, tax, and emotional burdens for beneficiaries, particularly during periods of bereavement.
“Private collections are expressions of identity, legacy and intention. As they grow in significance, so too does the responsibility of stewardship. With thoughtful planning, collectors can preserve not only what they have built, but the meaning behind it for generations to come,” said HSBC Private Bank CEO Ida Liu.
