Dealing with Personal Property in Your Will or Trust

Most clients like to focus on the big picture,  which in Estate Planning generally means their most valuable assets. Unfortunately, they frequently overlook or fail to address the division of their personal property which can include family heirlooms or other items with significant sentimental value. The division of these items has the potential for significant conflict and acrimony. Since these items are generally divided and distributed early in the estate administration process, dividing these items can result in hard feelings that last through the entire estate administration.

There are two (2) methods generally utilized to address the division of personal property.
Frequently the Will will provide an opportunity to create a supplemental document called a Personal Property Memorandum, that specifies the distribution of important items of personal property. This document does not need to be executed with the same formalities as the Will and permits the client to amend or change the Memorandum whenever necessary. Although this method could be ignored by a Court in the case of a dispute, in my experience they are generally accepted by Courts and given great deference.

The Second method is to formally incorporate the list indicating to whom personal property is distributed in the Will. This requires either a Specific Bequest as part of the Will itself or a list that exists when the Will is executed that is attached to and incorporated into the Will.

To the extent that you make the difficult decisions regarding who gets Grandma’s china or engagement ring, you will increase the chance that your children or heirs have a good relationship after you are gone.

4.16.2015