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Guide to Planning for Distribution of Personal Property
What is personal property?
The term personal property refers to items that do not have legal title, such as furniture, clothing, jewelry, collectibles, dishes, photographs, artwork, guns, etc.
Why is it important to plan for the distribution of personal property at death?
Many disputes arise over items that hold sentimental value, regardless of the monetary value of the item. Having a plan for the distribution of personal property can clarify your wishes and help prevent these disputes.
10 Steps to Planning for Distribution of Personal Property:
- Sell or donate items that are no longer useful to you and that do not hold sentimental value to you.
- Pass on items that you no longer want or need to family members or other friends during your lifetime.
- Identify items of personal property that have significant sentimental or historical value and “tell the item’s story” either in writing or orally to family members so that they will understand the significance of the item.
- Identify items that have a significant monetary value. If items have been appraised, keep copies of all appraisals or receipts with your important documents. Consider storing these items and appraisals in a safe or safe deposit box.
- Determine whether there are specific items that you wish to go to a particular person. Make a list identifying the item and your intended recipient. A word of caution: a list is not a legal document and may not be recognized after your death unless it is incorporated into your Last Will and Testament or your Revocable Trust.
- For items that you do not include on your list, identify which person or persons will receive your remaining personal property.
- Consider methods for resolving disputes among your intended recipients that may arise in the division of your personal property after your death (i.e. lottery system, estate sale, public auction).
- Determine who you will name as your personal representative or trustee, this can be a trusted individual or corporate fiduciary such as a bank or trust company. This person or corporate fiduciary will be charged with carrying out your wishes and working to resolve any disputes.
- Communicate your wishes to your family and to the person you intend to name as your personal representative or trustee.
- Work with an experienced estate planning attorney to implement your wishes and create legally binding documents to ensure your plans can be carried out to prevent disputes and avoid expensive legal battles after your death.
Do I need a Trust or Will?
