A love that is timeless… a consideration of luxury timepieces within your estate planning

Following a peak in 2022, the luxury watch market has stabilised amongst economic uncertainty but remains popular amongst both the older and younger generations. Recent years have seen luxury watches as a non-traditional investment and a way of diversifying portfolios through tangible assets. As a result, more people are dying with high value luxury items in their homes, increasing the risk that these may be overlooked by their executors.

In the same way that handbags have a hierarchy in brands that hold their value, watches also have a similar structure when it comes to luxury grading, with Rolex, Patek Philippe, Audemars Piguet, Omega and Cartier often topping the list.

Concluding whether a luxury watch holds any value is not as simple as merely identifying the brand. Whilst the brand is a good starting point, some watches with rarer iconic designs (such as the Rolex Submariner or Daytona) are highly sought after due to their scarcity and limited production, thus fetching a higher re-sale value. Careful identification of the model is important, and given the high quality replicas that are on the market, consultation with a specialist watch valuer is advisable.

What to do for estate planning with luxury watches

With popularity soaring for high-end timepieces, we should consider what we can do on death to ensure our executors have the relevant information to deal with these assets as part of the estate administration process and to ensure the value obtained is maximised.

Ensuring that important documentation relating to the watch is kept in a safe place, including the certificate of authenticity, the warranty card, the original sales receipt and service records, is key. In some cases, the original packaging (such as the box, tags etc) and accessories can add to the value on the re-sale market. This will help your executors identify the potential value for tax purposes and assess whether specialist insurance may be needed for the item.

One famous ad campaign told us that “You never actually own a Patek Philippe, you merely look after it for the next generation”. Some timepieces are not bought with the intention of resale but rather, are intended to be passed down as a family heirloom. In these cases, a detailed confidential letter of wishes to your executors containing clear instructions should be kept alongside your Will.

Where time is money, you can take some simple action now. Ensuring you have clear records and putting in place an up-to-date Will and Letter of Wishes could mean the difference between £500 and £5,000 and could potentially save a family dispute.

If you would like to review your Will or have any questions, please contact one of our private client solicitors.