During estate planning, intentions for major assets, like money and real estate, are set using a will and or trust, and these documents are legally binding. It’s a wise idea to also create a personal property memorandum which identifies items of sentimental value or use, and specifies the family and friends who should receive them. Though not legally binding in every state, personal property memorandums are nonetheless a helpful accompaniment to wills and trusts, and a good way to leave plans for sentimental belongings organized.
Clear Plans Are A Gift
Observing that the highly contested estate plans of famous people, such as Robin Williams, Aretha Franklin, and Casey Kasem, have often revolved around personal property conflicts, Candace Dellacona at Offit Kurman emphasizes the importance of thinking ahead about who should inherit treasured belongings:
When most people think about estate planning, their minds often go straight to the big-ticket items: the family home, retirement accounts, life insurance, and investments. In reality, it is almost always the personal belongings—jewelry, family heirlooms, artwork, collections, and sentimental items—that cause the most conflict among loved ones….The days of itemizing every item that you own in your Will are gone; nonetheless, it is still vital to thoughtfully address personal property in your estate plan. A well-drafted plan ensures that your wishes are clear, disputes are prevented, and your loved ones are provided guidance … .Personal belongings often symbolize a connection to the person who died or even to an entire family legacy….They often carry deep sentimental significance. Who inherits your grandmother’s wedding ring, your father’s guitar, or the family photo albums may matter more than who receives a brokerage account … .Without clear instructions, these items can spark tension, disagreements, and litigation.
At Chase Law in South Carolina, attorneys recommend attending to cherished belongings using a personal property memorandum, which “names the specific individuals you want to receive certain tangible personal items after your death….It is one of the simplest tools you can add to your estate plan, but it can make a big difference when it comes to dividing personal belongings.” In some states, such as South Carolina, a personal property memorandum can even have legal weight:
The memo works alongside your will. Your will must include a clause that references the memo for it to be legally valid. As long as that condition is met and the memo is signed by you, your personal representative will be required to follow it. This document gives you a way to be more specific than you might want to be in your will. You can change it as often as needed without going back to your lawyer for a formal update … .This memo is best for tangible property that has either sentimental value or practical use. Some examples include:
- Jewelry and watches
- Tools and equipment
- Artwork or photographs
- Antiques and family heirlooms
- Musical instruments
- Collectible items like coins or baseball cards
- Furniture or household décor
State Laws Vary
Because the probate laws vary from state to state, it’s smart to get guidance from estate planning professionals who can suggest the most efficient tools for use based on your location, goals and circumstances. For example, Dellacona shares these pointers about planning for personal belongings in New York:
Under New York law, your personal belongings (referred to as “tangible personal property”) are part of your estate, just like your financial accounts and real estate. Unless you provide specific instructions in your Last Will and Testament, tangible personal property will be distributed under the general terms of your Will. If you do not have a Will or another estate planning document, those items are then distributed pursuant to New York’s intestacy rules……In New York…the law does not automatically recognize a memorandum as enforceable unless strict requirements are met…..It is recommended that you instead list items directly in your Will….Alternatively, you can create a revocable trust, which permits a “pour-over” bequest in your Will to a trust. The trust must be executed and acknowledged by the parties, prior to or contemporaneously with the execution of the Will, and the trust must be identified in the Will.
If You Have Assets, You Need An Estate Plan
Estate plans are not just for the super wealthy or those with highly valuable and unique collectibles. Through estate planning, as attorney Meg DeLanders of Bowditch & Dewey explains, we actually accomplish so many important goals, including: designating guardians for minor children; setting aside assets for a spouse and other beneficiaries; preventing conflicts or oversights among relations, ensuring loved ones with special needs or capacity declines have care; looking out for cherished pets; making a succession plan for family owned businesses; and, even putting care plans in place for ourselves. These estate planning basics will help you get started.
Regardless of the specifics of your estate plan, the representatives you designate to see it through have a legal responsibility to carry out your affairs in accordance with your intentions and the law. When representatives like executors, personal representatives or trustees are designated, estate bonds can be required. Colonial Surety Company, a leading, national provider of all kinds of estate bonds, makes it easy and speedy to obtain them. Simply: get a quote online, fill out the information, and enter a payment method. Print or e-file the bond from anywhere.
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