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5/4/16
1
Estate Planningand
Protecting Your Investment
Chuck Lind, MMR
Youcan’ttakeitwithyouor
theonewiththemosttoyswins
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ProtectingYourInvestment
Whileyoucannotpreventadisaster,youcanmakeiteasiertorecoverwithabitofplanning
andpreparation.
Youneedtoconsiderseriouslythepossibilitythatsomethingdisastrouscouldhappentoyour
railroad.
Insurance
• Whatkindofinsurancedoyouhave?• Haveyoureviewedittomakesureyouhaveenoughcoverage?
• Properinsurancecoverageisusuallyoverlookedbymodelrailroaders.
• Mostinsuranceclassifymodelrailroadsascollectionssolimitedcoverage,likejewelry.
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• Benchwork – partofhousestructureorpartofcollection?Differentinsurancecarrierslookatthisdifferently.
• Liabilityissuesofmodelrailroadvisitors?
ModelrailroadsattachedtothehouseorseparatebuildingsneedspecificcoverageviaariderorotherspecificcoverageliketheNationalModelRailroadInsuranceoption.
Mostfolksdon’thaveanyideaaboutModelRailroadingandthisincludesInsuranceAdjusters.Mostthinkofacircletrackonaplywood base,soyouhavesomeworktodo.
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NMRACollectionInsurance
ThisserviceoffersNMRAmembersgrouppropertyinsuranceforcollections,layouts,livesteam,tools,slides,photographs,books,magazinesandrailroadmemorabilia.
nmra.orgLookunderMemberBenefits
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LayoutPlanning
Notwhatyouthink!
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• IfapersoncollapsedinyourrailroadroomhowwouldyouorEMT’sgetthemout?
• Firehowwouldyouandguestsgetout?Arefireextinguishersorsmokealarmspresent?
• BasicFirstaidkitpresent.
• Makesurethereisaphoneintheroomcellorlandlineforemergencies.
Inventory
“Itisthe insured’sresponsibilitytoprovethevalueoflostordamagedproperty.”
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Whatisit?
HighlymodifiedOn3BachmannShay-1st PlaceNNGC
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AllEnginesHaveaCode
AllBoxesHaveMatchingCode
Boxes?
Itrytosaveallmyboxesamodelinanoriginalboxwillusuallysellformore.FormyscratchbuiltmodelsImakeorpurchaseabox.
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ValuationGuidelines
GoodsourcesofinformationaredealerwebsitesandinternetsourcessuchaseBay.
ForRollingStockGoodRuleofThumb
Condition AskingPriceNeworlikenew 75-80%ListObviouslyusedbutundamaged 50%ListDamagedbutserviceableorrepairable 25%ListDamaged,partsonly 10%List
Beyondusableforparts zero(throwaway)
BuildingKits
Excellentcraftsmankitsthatareun-builtusuallyholdtheirvalueverywell.
Thechartbelowtakestheaveragevalue froCampbelltoFineScale
Currentlyavailable 1-3yearsold 75-85%ofListPriceOutofProduction 1-3yearsold 100%oforiginalPriceOutofProduction 3-10yearsold 150%oforiginalPriceOutofProduction 10-20yearsold 200%oforiginalPriceOutofProduction 20-30yearsold300%oforiginalPrice
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BuiltKitsBuilding&RollingStock
Thisisaverymurkyarea,ingeneralmodelsbuiltbyhobbyists areworthfarlessthanun-built
kits,simplybecauseofworkmanship.• Item isindistinguishablefromadetailedreadytorunplasticorbrassmodelwill
usuallybringabout80%oftheequivalentcommercialmodel.• Item isgeometricallyperfect, cleanlyputtogether,andifpaintednicelyfinished.
Howeverwithexaminationsomedetailsareobviouslymissing.60-75%oftheequivalentcommercialmodel.
• Sameasabovebutwitha substandardorincompletefinish50%oftheequivalentcommercialmodel.
• Modelisgeometrically skewedorshowsexcessorshearedglue10%oftheequivalentcommercialmodel.
Oneperson’sRailroadRoom
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Keeparecordofwhatgoesintobuildingandoperatingyourlayout.
AsimpleExcelspreadsheetshowingDatepurchased– Item– Value
Andkeepituptodate.
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Scale Road)Name Engine/Car)Type Number Manufacture Mfg)Number Notes )Value)
O
Chicago)North)Western 40')Steel)Box)Car 57776 Atlas 3002802L2 )$)))))))))45.00)
O Grand)Union 40')Wood)Reefer 90101 Atlas 77063 )$)))))))))45.00)
On3 West)Side 3)Truck)Shay 12 SunsetCustom)Paint)DCC )$))))1,475.00)
O Sierra)RR #5)Coach)&)#6)Combine)Set 5)&)6 Car)Works )$)))))))550.00)
O UP SD40ACE)Diesel 4141 MTHGeorge)Bush)Display)Only )$)))))))479.95)
On3 Tall)Pine 2)truck)shay Wiesman
Wiseman)Brass)Conv)to)Bachmann
Tall)Pine)Lumber)Company)Railroad)Inventory
Whatshouldyourinventorycover?
• Engines(BrassandPlastic)includeanythingdonetothem,decoder,paint,contestwinner.
• Rollingstockbesureto includewhatisontherailroadandkitsyettobebuilt.
• Buildingskitsandfinishedalsoextradetails.• Otheritems– vehicles,figures,detailparts.• Booksandmagazines.• Photos andslides.
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DocumentEverything
• Oneofthebestwaystodocumentyour layout(oryourentirehome)isphotos,eitherstillorvideo.
• Progressphotos ofthelayouthelptoshowwhatisunderthescenery.
• Photos ofthefinishedlayoutorfinishedandunfinishedareas.
• Hasyourlayoutbeenpublished?
WhenyouhavealltheinventorycompletedYouneedtoletfamilymembersknowwhereyou
havecopies.
Yescopies!Safeplace inyourhome
andKeepatleast1setoffsiteOtherfamilymembers
YourofficeCloudStorage
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Recoveringfromadisasterwilldependonhowwellyouhadeverythingdocumented.
Mostpeopletoldagentstheywishedtheyhadmoredata,not less,afteradisaster.
Getquotesfromaprofessionallayoutbuilderitwillhelpyouwhenyouareworkingwithan
adjuster.Keepyourdatauptodate!
EstatePlanningSomethingnobodywantstodo
Ifyou’reimmortal,youdon’tneedthisclinic.
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Makesureyouhaveacurrent will!
Problemismostwillsread,“Igiveandbequeath allofmytangiblepersonalpropertytomyspouse, ifmyspouseisliving,orifnot,tomychildrenlivingatthetimeofmy
death.”
Nowwhataretheygoing todo?
Itisararesituationwhereboth spousesareequallyinvolvedinmodelrailroading.
Ifyourspouseisn’tasinvolvedasyouare,itisunkindto leaveher(orhim)withasizeable
assetwithout information.
Muchoftheworkwehavealreadydiscussedwillprepareyourspousetohandleyourlayout
whenyoumovetothebigroundhouse.
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• Whyarewedoingthisclinic?
• Storiesofspouses gettingrippedoff.
• Storiesofspouseswhohavetogothroughtoomuchtogetthestuffgone.
• Storiesofspouses thathadinflatedvalues.
• Spouses thatweretold itwasn’tworthmuch.
Ifyoudon’twanttogiveyourwifearealisticappreciationofthevalueofyourtrains,and/or
youdon’twanttomakeiteasyforher,youhaveproblemsthatthiscliniccan’tproperly
address;youneedDr.Phil
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OScaleBigBoy$75.00
Conversationwithyourpotentialsurvivors
• Theyneedtoknowwheretheinventoryisandwhoarethecontacts.
• Youneedtodecide,together,whattradeoffsneedtobemadebetweentimeandeffortandmoney.
• Youneedtoanalyzethesignificanceofyourtrainsinrelationtotheentireestate.
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Whatgoesinwhatbox?
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Notallboxlabelsarehelpful
Ifyouhavecustompaintedanddecaledacarorgivethemanideawhereitbelongs
Betteridea– addaphoto
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• Understandtherelationshipbetweentime,labor,andmoney.
• Yougetlessforthestuffifyou’reinahurry.• Don’tcarewhichwayyougo,butyouabsolutelyneedtodiscuss.
• Doesthewidowwanttohaulyourstufftotrainshowsforthenextthreeorfouryears?
• DoesshewantthebenefitandhassleofeBay?• Consignment,sellers take15-30%cantakeyears.• Sell thecollection outright.
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HardbackBooks&Magazines
• Hardbackandsoftbound books representdifferentproblems.
• Youneedtolookatthepotentialresalevalueand,again,discuss timeandeffortversusmoney.
• Priceontheinsideofthebook isalmostuseless asaguidetowhatyoucangetforit.
• Don’tbemisled bysomeofthebookdealersinflatedprices.
• Dealinginthemagazinemarketisrarelyeffective.
Sellingtoadealer
• Thisisaquickwaytoselleverythingatonce.• Don’tallowthemtocherrypickthecollectiontheywillgetallthegoodstuffandyouhavethejunk left.
• Mostgooddealerswillreviewtheinventory,andfigurewhattheycansellin3months,6monthsandayearandwhattheywillhaveforever,whentheymakeanoffer.
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Taxes
• Knowwhereandhowtoresearchtaxconsequences.
• Taxadvisecanbewayoutofdatesixmonthsafteritisgiven.
• SellingoneBayandPayPalyouwillgetastatementofhowmuchyousoldandacopy isalsosenttoUncleSam.
Tomymindgettingthelayoutourofthehouseisamajorproblem,unless itwasbuiltin
modularform.Notonlyarewetalkingaboutalotofstuff,wearealsotalkingaboutalotofmaterialthatisnot
reusable.Thinkbackhowmuchtrack,benchwork andsceneryhaveyouseensurviveonemove.Theproblemiscompounded ifthe layoutis
attachedtothehouse.
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SentimentalValue
• Thinkaboutthis,everythingyouownisworthmoretoyouthatit’sworthontheopenmarket...otherwiseyouwouldhavealreadysoldit.
• Doyouhaveitemsofhistory,JohnAllenengineorcar?Maybelookatdonatingtoamuseumorhistoricalsociety.
Promises
• Didyoupromiseacertainpiecetooneofyourfriends.
• Howaboutwishesofhavingseveralofyouoperatorsgetacaroffyourrailroadforthemtorememberyouby.
• Doesyourspouse knowthosepromises,writethemdown.
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Thewayyoudealwithyourcollectioninlifemaybe,inasense,thewritingofyourownepitaph.Youwontbetheretodefendyourhopes anddreams,plansforyourfuture,yourlong-term
vision.Whatyourspouse andotherpeopleseewhen
theygothroughyourstuffmaybequitedifferentthanthe imageyouhopedtoportray
ofyourself.
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Thefrustrationofsortinganddisposingofthematerialpartofyourhobbymayleavepeoplewithasadlyinappropriateremembranceofyou.
Whatdoyouwhattobeyourlegacy?Noit’snottimetogiveupthehobbyandstartpackingitaway.Butnowisthetimetothinkaboutwhatyouwanttobecomeofyourhobby remainsandthatmaychangethewayyoucollect,store,documentandcullmaterialsandsupplies.
Or
Youmightconsideranalternative.InthemovieChattanoogaChoo Choo,the
openingscenepansawayfromagrave.Asyoumovebackfromthescene,yourealizethecoffin
isbeingloweredintoan85footboxcar.Perhapsyoucantakeitwithyoubutyoushould
startplanningforthatboxcarrightnow.
Thanks