Artist Estates and Fiduciary Duties

Managing an artist’s estate is about much more than safeguarding paintings and sculptures. It involves protecting a lifetime of creative output, maintaining cultural influence, and securing financial rights for future generations. Whether you are an executor, trustee, advisor, or family member, you must understand that legal obligations will shape everything you do.

Fiduciary duties apply to anyone managing an artist’s legacy. These duties arise by law, not by agreement, and New York courts will enforce them with little flexibility. Without a firm grasp of these responsibilities, even a well-meaning fiduciary can expose themselves to lawsuits, financial penalties, and the permanent loss of an artist’s historical reputation.

This article explains artist estates, the origins of fiduciary duties, and how to meet the legal standards required to manage them properly.

What Is an Artist’s Estate?

An artist’s estate includes much more than finished artworks. It covers all property, rights, and materials the artist owned at the time of death. This includes physical works like paintings and sculptures, but also intangible rights such as copyrights, licensing rights, and other intellectual property.

From a legal standpoint, however, the estate includes everything the artist owned at the time of death. New York law broadly defines an estate as encompassing both real and personal property. This includes obvious assets, such as artworks, intellectual property rights, and archives, as well as mundane possessions like studio furniture, vehicles, bank accounts, and even household items.

Recognizing this distinction matters. When managing an estate, fiduciaries must treat all property under their care with equal diligence. Courts do not distinguish between a priceless painting and an inexpensive kitchen table when imposing duties. Every asset demands inventory, valuation, and proper management.

At the same time, understanding the estate’s cultural weight is essential. Some materials that may seem insignificant, such as unfinished sketches, personal letters, or studio photographs, can carry significant scholarly or historical value. Their preservation can shape how future generations understand the artist’s work.

The Role of the Artist’s Archive

An artist’s estate includes all assets owned at death, both artistic and non-artistic. It is a legal collection of property and rights. An artist’s archive is different. It may consist of sketches, diaries, letters, drafts, photographs, exhibition catalogs, contracts, studio records, and other documents related to the creative process.

While the estate focuses on ownership and value, the archive preserves historical context. It helps scholars, collectors, and museums understand and authenticate the artist’s work over time. Even small, seemingly trivial items, such as a paint-stained apron or handwritten shopping lists, can carry meaning.

Valuation of Archives

In some cases, an archive can become as valuable as the artworks themselves. Proper documentation can authenticate pieces, establish provenance, and support the scholarly interpretation that influences market value. A complete archive can help secure museum exhibitions, retrospective catalogs, and academic studies that increase the artist’s reputation.

Fiduciaries must take special care when valuing or selling archives. Selling documents piecemeal can destroy historical context and lower overall value. Scholars often prefer archives kept intact to maintain the integrity of the collection. Decisions to divide, donate, or sell archival materials must consider both the financial and cultural consequences.

Preserving the Archive

Fiduciaries managing an artist’s estate must treat the archive with the same care they give to physical artworks. Preserving the archive requires careful cataloging, proper storage, conservation planning, and, in some cases, collaboration with institutions capable of maintaining large collections.

Losing, mishandling, or fragmenting the archive can irreparably damage the estate’s cultural contribution. Courts hold fiduciaries accountable for failing to protect valuable estate property, including archival materials. Managing the archive diligently supports both the fiduciary duty of prudence and the broader goal of sustaining the artist’s enduring voice.

Sources of Income for Artist Estates

An artist’s estate can remain financially active long after the artist’s death. Understanding the sources of ongoing income is essential for fiduciaries who must manage the estate both responsibly and sustainably.

Sale of Physical Artworks

Selling artworks owned by the artist, both during their lifetime and after their death, can provide an immediate source of income for their estate. Fiduciaries must catalog the works, obtain appraisals from qualified experts, and plan sales strategically to avoid flooding the market.

On the other hand, selling too many works at once can depress prices and harm the artist’s long-term market reputation. Under New York law, fiduciaries have a duty to maximize the value of estate assets for the benefit of the beneficiaries, as required by EPTL § 11-1.1.

Copyrights and Licensing Rights

Copyrights represent a major source of continuing income for artist estates. Licensing fees from books, exhibitions, merchandise, and digital platforms can generate substantial revenue.

Under the U.S. Copyright Act, 17 U.S.C. § 302, copyrights last for the artist’s lifetime plus seventy years. The estate holds the right to license images for reproduction, distribution, and publication.

Managing copyrights prudently includes monitoring unauthorized uses, negotiating licensing deals that respect the artist’s integrity, and ensuring that licensees use the work in ways consistent with the artist’s reputation.

Posthumous Editions

In some cases, artists authorize the creation of additional works after their death, such as bronze casts or print series. When creating new editions is consistent with the artist’s wishes and properly disclosed, they can provide a legitimate revenue stream. However, fiduciaries must tread carefully when it comes to these new editions. Unauthorized posthumous editions risk accusations of fraud and may diminish the artist’s reputation.

Resale Royalties

Although resale royalties are recognized in many countries, the United States has no federal resale royalty right. California provides a limited form under the California Resale Royalties Act, but recent court decisions have weakened its enforceability. Nonetheless, if the artist’s work is sold in countries that honor resale rights, the estate may be entitled to claim royalties. Fiduciaries must remain informed about international laws and opportunities.

Exhibitions, Grants, and Donations

Museums and cultural institutions may pay fees to exhibit works from an artist’s estate. The estate can also benefit from grants supporting conservation, cataloging, and educational programs. Collaborations with academic and cultural organizations often enhance both income and the artist’s reputation.

Preserving Future Income

Fiduciaries must recognize that short-term financial gains should not come at the expense of long-term opportunities. A careful, patient approach to income generation honors the fiduciary duty of prudence and protects the estate’s ability to support future generations.

Fiduciary Duties in Managing Artist Estates

Anyone who manages an artist’s estate steps into a fiduciary role, whether they realize it or not. All fiduciaries owe duties of loyalty, prudence, and obedience to the estate or foundation they serve. They must act solely in the best interests of the beneficiaries or the charitable mission, exercise reasonable care and skill, and follow the instructions set forth in wills, trusts, or governing documents.

In the context of an artist’s estate, fiduciaries may include:

• Executors named in the artist’s will
• Administrators appointed by the court when no will exists
• Trustees managing trusts created during the artist’s life or by will
• Board members and officers of nonprofit foundations holding the artist’s work
• Advisors handling archives, licensing, or exhibitions

Fiduciary Duties Apply Without a Written Contract

Fiduciary duties arise automatically when someone holds property or power for the benefit of another. They do not depend on formal contracts or titles. The law imposes these obligations based on the relationship itself.

Furthermore, fiduciary status does not depend on whether the individual receives compensation. Even unpaid fiduciaries, such as volunteer board members, are held to strict legal standards. Moreover, courts do not excuse breaches based on good intentions or lack of expertise.

Fiduciary Role as Stewardship

New York law makes clear that fiduciaries must manage assets prudently and in good faith. Under EPTL § 11-2.3(b)(1), fiduciaries must act with the care, skill, and caution that a prudent investor would exercise, considering the purposes and distribution requirements of the estate or trust.

The fiduciary must balance preserving cultural and scholarly value with the need to generate income and satisfy financial obligations. Careless handling of artworks, archives, copyrights, or reputational matters can lead not only to financial losses but also to the permanent diminishment of the artist’s legacy.

Consequences of Breaching Fiduciary Duties

Anyone agreeing to manage an artist’s estate must understand that the law imposes a high standard of conduct. Good intentions are not enough. Fiduciaries must act deliberately, transparently, and with complete loyalty to the artist’s legacy.

Breaching fiduciary duties can lead to serious consequences. Beneficiaries can sue for damages, and courts can remove fiduciaries who fail in their responsibilities. In some cases, fiduciaries may be ordered to repay losses out of their own assets.

The Origins of Fiduciary Duties

Fiduciary duties come from the ancient division between legal and equitable systems of justice. The legal system enforces contracts, property rights, and specific rules. Equity developed to address situations where strict rules produced unfair results, especially when one party held power over another.

Trust law grew out of equity. It created the principle that a person holding property for the benefit of another must act with loyalty and care. Courts of equity recognized that relationships built on trust and dependence required higher standards of behavior.

Today, fiduciary duties apply whenever someone holds property or decision-making authority for another’s benefit. Managing an artist’s estate fits squarely into this tradition. Fiduciaries must honor not just the legal ownership of property but the equitable obligation to serve the beneficiaries’ and the artist’s intended interests.

This foundation means that fiduciaries cannot hide behind formalities. Courts look at the fiduciaries’ conduct, not just contracts. The standard remains fairness, loyalty, and prudence in every decision.

Key Fiduciary Principles

Fiduciary law imposes three core principles that define every fiduciary’s obligations: loyalty, prudence, and obedience. These principles apply to anyone who manages an artist’s estate, whether formally appointed by a court, named in a will, or serving as a trustee or board member.

• Duty of Loyalty: Fiduciaries must act solely in the interest of the estate or foundation and its beneficiaries. They must avoid personal gain, self-dealing, or favoritism.
• Duty of Prudence: Fiduciaries must manage assets with care, skill, and caution. They must seek expert advice when necessary and avoid risky actions.
• Duty of Obedience: Fiduciaries must follow the artist’s instructions as laid out in wills, trusts, or charters. They cannot override the artist’s stated wishes.

Fiduciaries who breach their duties face personal liability, including repaying losses, restoring assets, or removal by the court.

Succession in Anglo-American Law

When an artist dies, the law requires a process called succession to manage the transfer of property, settle debts, and protect all parties involved.

Executor or Administrator System

In New York, an artist’s will names an executor to carry out their wishes. If there is no will, a court appoints an administrator under intestacy laws (EPTL § 4-1.1).

Role of Surrogate’s Court in New York

This court supervises estate administration, resolves heir disputes, and approves fiduciary actions. Fiduciaries must report inventories, actions taken, and seek approval for major decisions.

Contrast with Universal Succession in Europe

In Europe, heirs may automatically inherit both assets and liabilities. In the Anglo-American model, a fiduciary manages the estate first. This stresses fiduciary responsibility from the outset.

Control Over Estate Assets

Executors and administrators manage assets solely for the estate’s benefit. They must preserve artworks, protect IP, and ensure proper distribution after debts and taxes.

The Importance of Wills for Artists

Creating a will helps protect an artist’s legacy. It determines how artworks, copyrights, and archives are handled, and prevents the estate from falling into intestacy.

• Control Over Artistic Assets: Artists can designate recipients and give instructions for sale or conservation.
• Protection for Unmarried Partners and Chosen Heirs: Intestacy favors legal relatives. Wills allow inclusion of life partners or collaborators.
• Managing Intellectual Property: Wills determine who controls copyrights and licensing, avoiding disputes and lost income.
• Preventing Family Disputes: Clear instructions reduce emotional or legal conflicts among heirs.
• Supporting Charitable Goals: Wills can establish charitable bequests or foundations.

Consequences of Dying Intestate

If an artist dies intestate in New York, the estate follows EPTL § 4-1.1. Biological relatives take precedence, potentially scattering important works and undermining the artist’s legacy.

Advance Planning as Legacy Protection

Wills should address property, copyrights, licensing, and legacy plans. Legal planning ensures the artist’s wishes are respected over time.

Artist Foundations and Trusts

Foundations and trusts manage legacies posthumously by preserving artwork, supporting exhibitions, funding scholarships, or promoting education.

• The Requirements: Must operate for public/educational purposes and cannot benefit private individuals.
• The Benefits: Provide tax advantages, legal clarity, and long-term legacy protection.

Fiduciary Responsibilities in Nonprofit Entities

Foundation directors, officers, and trustees are fiduciaries. They owe duties to the organization and the public, with oversight by the New York Attorney General.

• Duty of Loyalty: Must avoid conflicts of interest and act in the foundation’s best interest.
• Duty of Care: Must stay informed, attend meetings, and actively oversee operations and financials.
• Duty of Obedience: Must follow the foundation’s mission and legal purpose, avoiding personal agendas.

Attorney General Oversight

Foundations must comply with nonprofit law, file annual reports, and avoid misconduct. The Attorney General can investigate or dissolve foundations acting improperly.

Maintaining Public Trust

Artist foundations manage cultural heritage. Trustees’ decisions shape how future generations experience and value the artist’s work.

Final Thoughts on Artist Estates and Fiduciary Duties

Managing an artist’s estate or foundation is one of the most demanding fiduciary roles in the legal world. It requires a careful balance of financial management, legal compliance, and cultural stewardship. The fiduciary must protect both the artist’s tangible assets and the intangible essence of their legacy.
Accepting a fiduciary role in managing an artist’s legacy should never be done lightly. It demands careful thought, proper planning, and often, professional support. Engaging an experienced attorney can make the difference between honoring the artist’s life work and serious personal liability, removal from office, or worse, the permanent loss of cultural value.

If you have questions about managing an artist’s estate or protecting an artistic legacy, Stropheus LLC can help. Our team understands the legal, cultural, and financial challenges involved. Contact us today to discuss how we can guide you through every step with skill, care, and commitment.

Fiduciary Duties of Art Advisors

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Art advisors have become a key fixture in today’s booming art market. However, many individuals enter the profession with a knowledge of art history or market trends, but no understanding of legal compliance. That oversight creates risk, especially in New York, where courts impose strict fiduciary duties on advisors who may not even know these duties exist.

Some art advisors operate on the basis of handshakes and informal emails, trusting mutual understanding to carry the day. But the law sees things differently. It imposes legal duties regardless of whether a contract exists or not. Once an advisor acts on behalf of a client in an art transaction, they take on fiduciary responsibilities with serious consequences.

If a transaction goes wrong, such as when the deal falls apart, the client loses money, or a dispute arises over commissions, the absence of a written agreement will not protect you. In fact, it may expose you to even greater liability.

Read further to learn what an art advisor’s fiduciary duties are and how they arise. Also, discover why it is so important for art advisors working in New York to structure their relationships with legal clarity from the outset.

Understanding Fiduciary Relationships

The law does not treat art advising as a casual business service. Instead, it sees the advisor-client relationship as one built on trust, expertise, and an inherent power imbalance. That legal recognition creates fiduciary duties, whether the advisor is aware of them or not.

Unlike a simple contract where both parties are presumed to have equal footing, fiduciary law assumes that the advisor holds more knowledge, control, and influence. The client, regardless of wealth or sophistication, is presumed to be the vulnerable party. This presumption is built into the legal system and cannot be reversed, even by agreement.

Courts hold art advisors to this higher standard precisely because they act as guides through a market that clients often do not fully understand. The advisor must serve the client’s interests exclusively, with complete transparency and loyalty. These duties apply even in the absence of a written contract.

Once a dispute arises, the advisor cannot claim ignorance. Furthermore, the law does not care whether the advisor intended to act in a fiduciary role or not. If the relationship fits the legal definition, the duties apply. And once they apply, any breach can lead to significant financial and reputational consequences.

Fiduciary Duties vs. Non-Fiduciary Roles

Not every role in the art industry is fiduciary. Fiduciary duties arise when one party is legally required to act in the best interests of another. Non-fiduciary roles, on the other hand, allow for self-interest and profit.

To illustrate:
Gallerists in the primary market often act as agents for artists. When they accept artwork on consignment, New York law treats the work and any proceeds as trust property. This creates fiduciary duties to the artist, including loyalty, care, and full disclosure.

Dealers in the secondary market usually sell from their own inventory. They act for themselves, not as agents. As a result, they do not owe fiduciary duties to artists or buyers unless they take on an advisory role.

Art advisors, however, take on fiduciary duties by definition. When they represent a client in a transaction, they must act solely in that client’s interest. They cannot accept hidden commissions or serve conflicting parties. The advisor’s income may depend on the sale, but their legal obligation is to their client alone.

Art advisors must always be aware of their position within this framework. The law holds fiduciaries to the highest standard, and failure to meet that standard can result in personal liability.

The Legal Foundation of Fiduciary Duties

Fiduciary duties do not come from business norms or best practices. They come from a separate body of law that evolved to protect vulnerable parties in relationships built on trust.

Courts in the United States apply two systems of law. One is legal, focused on rules and contracts. The other is equity, focused on fairness and relationships. Fiduciary duties come from equity.

Equity
Equity applies when one party holds power or control over another’s money, property, or decisions. In those cases, the law imposes duties that require loyalty, care, and transparency. These duties exist to prevent abuse of power and restore fairness in unequal relationships.

Art advisors fall squarely into this category. They are presumed to possess expertise in pricing, authenticity, and market dynamics. Clients rely on that expertise and, due to this reliance, the law imposes heightened obligations on the advisor, even in the absence of a contract or formal appointment.

Agency
In legal terms, the advisor becomes an agent of the client the moment they act for a client in a transaction. As an agent, the advisor must act solely for the client’s benefit and follow the client’s instructions. This agency relationship automatically triggers fiduciary duties, which no contract can cancel. Once the advisor steps into a position of trust, equity holds them to a higher legal standard.

Factors That Increase Fiduciary Exposure

Not every advisory relationship carries the same level of legal risk. Courts consider several factors to determine the extent of an advisor’s responsibility. These factors can increase the likelihood of a fiduciary breach and expand the consequences if one occurs.

Control
If an advisor controls the client’s funds, artwork, or key decision points, the court will see that as a sign of influence. The more control the advisor has over the transaction, or the property involved, the greater the fiduciary duties.

Inequality
Courts presume that clients lack the same knowledge, experience, and market access as advisors. This presumption stands even when the client is wealthy or sophisticated. If the advisor holds professional expertise and the client does not, the law views that as a power imbalance. The greater the imbalance, the greater the advisor’s responsibility.

Loyalty
If an advisor has undisclosed relationships or benefits from both sides of a deal, that undermines trust. Even subtle conflicts of interest can create exposure. The moment an advisor favors anyone other than the client, they risk breaching the duty of loyalty.

Promises or conduct
If the advisor made promises, offered guarantees, or gave advice that the client relied on, the advisor may be held accountable for the outcome. Courts are not limited to what is in writing. They will evaluate the advisor’s behavior, representations, and intentions.

These factors determine the extent of legal risk the advisor faces in the event of a dispute. Advisors who hold property, influence outcomes, and engage with less experienced clients are under the highest scrutiny.

Core Fiduciary Duties

Fiduciary law imposes three primary duties that shape every aspect of an advisor’s role. These duties are as follows:

Loyalty

The duty of loyalty requires the advisor to act solely in the client’s best interest. There is no room for divided attention or undisclosed gain. Advisors must avoid conflicts and cannot accept commissions or benefits from sellers unless the client gives informed, written consent. Even then, the arrangement must be reasonable and fully disclosed. Favoring another client, supplier, or even a family member over the client violates this duty.

Prudence

The duty of prudence requires the advisor to use sound judgment based on the client’s specific needs and level of sophistication. Advisors must gather relevant facts, evaluate risks, and avoid putting the client in harm’s way. If a client lacks market experience, the advisor must take greater care to explain transactions and guide decisions.

For example, when advising a seasoned collector, an advisor may reasonably assume familiarity with the market. But when working with a first-time buyer who is about to invest a significant portion of their net worth, the law expects more. In that case, the advisor must ensure the client understands the nature of the transaction and its risks.

Transparency

Advisors must disclose any information that affects the client’s interests. This includes commissions, financial ties to sellers, and potential conflicts of interest. The client has the right to know if the advisor benefits from the transaction beyond the agreed fee. Hidden relationships or undisclosed incentives violate fiduciary law. Transparency protects both the client and the advisor, ensuring that decisions are based on trust and complete information.

These three duties are non-negotiable. Once the advisor steps into a fiduciary role, the law requires loyalty, prudence, and transparency in every interaction. Failure to meet either of these obligations can result in serious legal and financial consequences.

The Agency Relationship in Practice

Under New York law, an agency relationship forms when one person agrees to act on behalf of another and subject to their control. For art advisors, this means that the client, not the advisor, retains ultimate control over the decision-making process.

Advisors often forget this principle. They take initiative, make decisions, or negotiate terms without full client input. But once an advisor steps outside the bounds of client control, the law treats it as a breach.

An art advisor must not only act in the client’s best interest but also ensure that the client understands and consents to every material step. This requirement applies to communications, negotiations, purchases, and any use of client funds or property.

An advisor cannot make decisions in a vacuum or assume that prior conversations justify later actions. If the client did not specifically authorize a step, the advisor may be held liable.

Courts pay close attention to control. If the advisor operated independently or withheld information, the court may find that the advisor acted outside the scope of agency. That finding alone is enough to trigger fiduciary liability.

To comply with the agency standard, advisors must document their recommendations, obtain clear client instructions, and avoid making assumptions. The relationship is not about efficiency. It is about accountability.

Common Fiduciary Breaches
Art advisors often breach fiduciary duties without realizing it. These breaches can seem minor in practice but carry significant legal consequences when a dispute arises.
Double-dipping or hidden commissions: An advisor who receives payment from both the buyer and the seller engages in double-dipping. This creates a direct conflict of interest. Even if the advisor believes they can serve both sides fairly, the law forbids this unless the client gives fully informed and written consent.
Undisclosed conflicting interests: Another frequent breach involves steering clients toward dealers or sellers with whom the advisor has a financial relationship. If an advisor recommends a sale because it benefits a friend, family member, or business partner, and the client is unaware of that connection, it undermines the duty of loyalty.
Using client funds or property without permission: If an advisor borrows a painting for a personal event or uses client funds to secure a piece before confirming the purchase with the client, a court will likely consider this a misappropriation and breach of fiduciary duty.
Unintentionally acting against the client’s best interest: Even well-meaning actions may lead to liability. The law does not require bad intent. It only asks whether the advisor acted with undivided loyalty, care, and full disclosure. If the answer is no, the advisor may be held accountable. For example, if an advisor pushes a client toward a purchase that turns out to be overpriced or fraudulent, and the court finds that the advisor failed to conduct proper due diligence, the advisor may be held responsible for the resulting loss.

The Legal Consequences of Breach
Fiduciary breaches carry serious legal consequences that extend far beyond typical contract disputes. Once a court finds that an advisor has violated their fiduciary duty, the penalties can include repayment of any benefit the advisor received, and, in some cases, personal liability.

Loss of Fees and Repayment of Profits
Unlike regular commercial disputes, fiduciary litigation focuses on trust, fairness, and accountability. Courts do not ask whether the advisor acted reasonably. They ask whether the advisor upheld the client’s interest without compromise. If not, the court can order restitution, including full disgorgement of fees and repayment of all profits, even if the client did not suffer a measurable loss.

Personal Liability
In New York, courts may also pierce the corporate veil. That means the advisor’s business structure, such as an LLC or corporation, may not protect their personal assets. If the advisor personally breached fiduciary duties or misused client funds, the court could hold them individually liable for their client’s losses.

Litigation Costs
Litigation costs are also higher. Because fiduciary cases often involve extensive document review and fact-specific analysis, legal fees add up quickly. Advisors may also be required to pay the client’s legal costs if the court rules in the client’s favor.

Damage to Reputation
The risk of reputational damage is just as serious. A fiduciary breach can destroy professional relationships, erode credibility, and lead to exclusion from art fairs, institutional partnerships, and collector networks.
The safest way to avoid these outcomes is to treat every client interaction as part of a regulated relationship. That means understanding the legal standard and acting accordingly in every transaction.

Agency Costs and the Sliding Scale of Risk
Not every misstep in a fiduciary relationship results in legal action. Courts recognize that some inefficiencies or misunderstandings are inevitable. These are known as agency costs. They are the byproduct of trusting one party to act on behalf of another.
For example, if an advisor misses a minor deadline or fails to return a non-essential call, a court may not consider that a breach. But when the advisor’s conduct involves money, decision-making, or hidden conflicts, the analysis changes.
The level of risk grows with the amount of control the advisor exercises. The more responsibility the advisor takes on, the higher the standard becomes. An art advisor managing millions of dollars in client funds must meet a stricter standard than someone providing informal guidance on a single purchase.
The same applies to the client’s level of vulnerability. Courts are more likely to protect clients who are new to the art market, elderly, or making emotionally driven decisions. If an advisor exploits that vulnerability, even unintentionally, the court will take a closer look.
This sliding scale of risk means advisors cannot rely on a one-size-fits-all approach. They must evaluate each relationship based on the client’s profile, the scope of work, and the level of control involved. The more influence an advisor has over outcomes, the more careful they must be in their approach.

Art Advising Contracts
A well-drafted contract is one of the most effective ways an art advisor can manage fiduciary risk. While a contract cannot eliminate fiduciary duties, it can define the scope of the relationship, clarify expectations, and reduce misunderstandings that lead to legal disputes.
An effective contract avoids vague or informal language and contains the following:
A clear description of the advisor’s role and obligations: Describing exactly what services the advisor will provide, such as acquisition support, research, or negotiation.
Compensation terms: Stating how and when the advisor will be paid and disclosing whether they may receive commissions or benefits from third parties.
Conflict of interest disclosures: Requiring the advisor to inform the client in writing of any financial relationships with sellers or other parties.
Confidentiality clauses: Protecting the client’s identity, collection details, and transactional history.
Indemnity clauses: Limiting liability for losses that result from third-party actions or events outside the advisor’s control.
Non-circumvention clauses: Preventing clients from bypassing the advisor to engage directly with sources that the advisor introduced.
Without a written contract, courts will rely on fiduciary law to fill in the blanks, often placing the entire burden on the advisor. An agreement reviewed by experienced legal counsel is a professional safeguard that benefits both the advisor and the client.

Ethical Standards and Industry Best Practices
Beyond legal requirements, art advisors should follow professional ethics and recognized best practices. These standards reflect the market’s expectations and help advisors build long-term trust with clients, collectors, and institutions.

Codes of Ethics
Several organizations have published codes of ethics specific to art advising. For example, the Association of Professional Art Advisors (APAA) requires members to avoid conflicts of interest, refuse compensation from sellers, and disclose any potential sources of bias. While these standards are not laws, courts may consider them when evaluating an advisor’s conduct in a dispute.

Do not Exaggerate Qualifications
Advisors should not exaggerate their expertise, access, or influence. If they work with other professionals, such as conservators, appraisers, or attorneys, they should disclose that clearly and avoid taking credit for work outside their field.

Avoid Blurring the Lines
Art advisors must also draw a firm line between their role and that of a dealer. If an advisor starts selling inventory or brokering deals without full disclosure, they may blur the boundaries of their fiduciary obligations. This confusion can trigger legal exposure and undermine the client relationship.

Balance Client Expectations with Legal/Ethical Standards
Serving high-net-worth clients presents additional challenges. These clients often expect fast results, exclusive access, and complete discretion. Advisors must meet these expectations without compromising legal or ethical standards. That balance requires clear communication, strong documentation, and a commitment to integrity in every transaction.
By following ethical guidelines, art advisors not only protect themselves but also contribute to a more transparent and trustworthy art market.

Final Takeaways
An art advisor has certain fiduciary duties that are mandatory, not optional. The law imposes these responsibilities based on the nature of the advisor-client relationship rather than the advisor’s intentions. Once an advisor acts on a client’s behalf in a transaction, they take on legal obligations that courts will enforce with little flexibility.
Every advisor must understand that they operate under a legal framework that prioritizes the client’s interests above all else. They must also understand that informal practices, handshake deals, and industry customs cannot override fiduciary law, nor is ignorance of these duties a valid defense.
To manage this risk, art advisors should use written contracts that clearly reflect their role and include specific terms regarding compensation, disclosure, and responsibility. They should also stay informed about legal developments, follow ethical standards, and seek legal counsel when structuring relationships or resolving disputes.
For advisors and clients seeking legal guidance, STROPHEUS LLC provides expert counsel in art law, fiduciary compliance, and risk management. Our team understands the art market and the legal obligations that come with it.
For more information, contact us today to schedule a consultation.