Estate Planning for Your Stuff
Sometimes Your Stuff Matters
Ever noticed how everyone talks about the big-ticket items in estate planning—retirement accounts, life insurance, bank accounts?
But what about the little things, the unsung heroes of personal property? You know, the stuff that makes your space uniquely yours.
In the age of decluttering and Marie Kondo, we still need to remember that sometimes, stuff matters.
As you start to think about your own estate planning, here are some key things to remember.
Do your items have monetary or sentimental value?
Value is in the eye of the beholder. Some of your stuff may be loaded with cash value while others are more sentimental treasures. Keep in mind that each type requires its own strategy for planning.
If your stuff has monetary value…
If you have something that is valuable, its important to figure out its actual worth. Your items may need to be insured. Renter’s or homeowner’s insurance may limit what it covers or pays if your personal property is damaged, lost, or stolen. If your item requires maintenance, it is important to document what is required so that its value doesn’t decrease.
If your stuff has sentimental value…
More often than not, its the sentimental value items that could cause conflict within a family. Your loved ones will already be dealing with your loss, so why add an emotional treasure hunt into the mix? Document your wishes, so everyone's on the same page. Who gets what? And how can you prevent a tug-of-war over that antique lamp?
Who wants your stuff?
Estate planning is all about documenting what you have and who you plan to leave it to. But here's the kicker—does anyone even want your stuff? Before crafting your estate plan, talk with your beneficiaries to find out if they actually want the item you intend to give them. No use gifting someone your vintage vinyl collection if they're all about Spotify.
If more than one person wants an item…
Now, picture this: multiple heirs eyeing that quirky piece of art you picked up on a whim. It's a potential family feud waiting to happen. Address it upfront in your plan, so your legacy doesn't become the plot of a reality TV show.
If no one wants an item…
And, if by some twist of fate, no one's interested in that collection of commemorative spoons you've been curating, it's time to decide its fate. Sell, donate, or pass it on to someone who appreciates the finer things in life. Just remember that items may not hold the same level of importance to your loved ones as it means to you.
Including Your Stuff in Your Estate Plan
Now, how to weave all this into your estate plan? There are a few different ways to incorporate your stuff into your estate plan.
Specific Gifts
A specific gift in the last will and testament (will) or revocable living trust (trust) allows you to specifically name who will receive particular items. Your executor or trustee will be responsible for making sure that the items are given to the correct beneficiaries. And you’ll have to remember that if you change your mind, you will need to update your documents using an attorney.
Personal Property Memorandum
Another option is using a personal property memorandum. This document lists your specific personal property items and the names of who will receive each item. As opposed to a will or trust, you just need to sign and date this to make it valid (no witnesses necessary). The document is then referenced in your will or trust.
Residuary Clause
Most, if not all, wills and trusts contain a clause that addresses any items that have not been specifically mentioned and distributed in the will or trust. For instance, this clause could say that anything left in your estate be “divided equally among my children” or “all to my spouse.”
Sum It Up
Once you know what you have, how much its worth, and who you want to leave it to, you need to make sure its reflected in your estate plan. Sometime your stuff also needs to find its happily ever after.
Are you ready to take control?
Follow these steps to get the ball rolling in your court!
Download our Estate Planning Workbook to help you think through some of the questions you will be required to answer
Review our Estate Planning pricing plans to learn more about how we help you plan for your future.
Get started working with us when you are ready to take control of your legacy!