When they are estate planning, people often spend the most time determining what will happen to their most valuable assets. However, it is equally important to consider what will happen to small personal property. While it may not have much market value, this includes items of sentimental value. For instance, this might include jewelry, dresses, or family artwork.
Even items that are seemingly insignificant to you could mean something to your loved ones. Thus, it could cause fighting within your family once you are gone. This makes it important that you think about what will happen to your personal belongings when you are gone. This could help avoid confusion, hurt feelings, and fighting once you are gone.
To help ensure that there is as little conflict as possible following your death, consider bequeathing family heirlooms and sentimental assets to your loved one in your will or trust. Keep reading for answers to frequently asked questions about leaving items of sentimental value in an estate plan.
Should I Discuss Items of Sentimental Value With My Family?
One of the reasons people like to bequeath heirlooms and items of sentimental value in their estate plan is to avoid potential fighting amongst family members once they are gone. However, hurt feelings and confusion could still arise if relatives feel scorned by the decisions you made. You may then find it helpful to discuss what items you plan on making specific arrangements for with your family. Then, ask if anyone has particular items they are attached to. This could help you understand which family members value which items.
While conversations surrounding a death can be awkward, this gives you a chance to discuss who inherits which family heirlooms now so that there is no confusion later on. Even if certain items are wanted by multiple people, you have a chance to explain your decisions now. This can potentially prevent conflict after your death.
Are There Benefits to Bequeathing Assets While I'm Still Alive?
Of course, if you are concerned that certain items could cause disputes amongst your relatives once you are gone, you may find it beneficial to start handing them out as gifts while you are still alive. In doing so, you can ensure that your belongings go to the relatives that you intended.
Gifting your belongings to your loved ones during your lifetime also has the added benefit of allowing you to see their reaction to receiving items of sentimental value. You will even get to see them enjoy your gift.
Gifting family heirlooms can also help facilitate fun conversations about your family history and the origin of certain items. Passing on family history is important in order to ensure those stories are not lost. Additionally, discussing family heirlooms now can help your loved ones become knowledgeable before it is too late.
How Can I Distribute Assets in My Estate Plan?
Even if you talk to your relatives about which family heirlooms they'd like to inherit, you may still choose to wait and arrange to have these assets distributed to them upon your death. If this is the case, you can use a will or living trust to make specific bequests of property. The person who is in charge of handling your estate after your death (your executor you name in your will, or your successor trustee if you create a living trust) will then be in charge of getting your personal property to the people that you named to inherit them.
Of course, you do not need to make specific arrangements for every item you own. Concentrate on personal property that has the greatest sentimental value to your loved ones. You may then choose to simply guide your beneficiaries to divide your remaining belongings equally.
What Is a Property Memorandum?
Detailing every item you want to bequeath to your loved ones in your will is tedious. Instead, many states allow you to make a separate list of items that outlines who you want to inherit each item called a "property memorandum" or a "memorandum of tangible property items".
The advantage of including this document in your will is that it can be easily updated or changed without having to go through complex amendments to your will or trust. If you get rid of an item, acquire something new, or change your mind about who you want an item to go to, simply make a new list.
This document is legally binding, but it can only include tangible items. You cannot list money or other intangible property in a property memorandum.
What Is a Letter of Instruction?
If your state's law does not allow you to create a property memorandum but you don't want to list specific items in your will or trust, you may want to write an informal letter of instruction.
While this document is not legally binding, it is likely to be taken seriously by your family. It can also influence how your assets are distributed. Additionally, should certain items cause dispute amongst your relatives, your letters of instruction can have an impact on any decisions made by the court.
You can make your letter of instruction as detailed as you wish. Further, you can even include an explanation for any decisions that may surprise your loved ones.
Leave Your Items of Sentimental Value to Family Members
Contact us for assistance if you are looking to leave items of sentimental value in your will or trust. We can help you determine the best course of action to take given the needs of you and your family.
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