No one wants to be the source of family estate battles over treasured heirlooms but family feuds are more likely over Aunt Josephine’s jewelry than the family home. Putting sticky notes on personal items before you die or expecting heirs to figure things out after you’ve passed often leads to ugly and expensive disputes, says an article from The Wall Street Journal, “Pass On Your Heirlooms, Not Family Drama.”
Right Now Can Be the Right Time
Gen Xers and Boomers are frequently appointed as their parents’ Executor and are tasked with assessing their personal property and distributing assets. Often conversations about inheritance and heirlooms and put off until, the “right time”, but that time may never come. However, there are better ways to plan and distribute property to avoid family fights over cars, jewelry, furniture and household items.
Provide Written Instructions
Choose your Executor with care, provide detailed written instructions, and clarify how much power they will have. Learn from an example of a police officer in Illinois who has been trying to settle his father’s estate for nearly two years. His father owned twelve vehicles, a water-well drill rig and two semitrailers of car parts and guns dating back to the Civil War. He also listed 19 heirs, including stepchildren and friends. He told his son he knew he could handle everyone and the stress of people who “aren’t going to be happy.” This father left his son with a tremendous burden, during a time of grief, when emotions run high.
Include Details About Important Items
If you want a particular item to go to a specific person, and you don’t want to give in away during your lifetime, make it clear in your will or trust. Describe the item in great detail and include the name of the person who should get it. A sticky note is easily removed, and just telling someone verbally that you want them to have something isn’t legally binding.
Without clear directions, one family with five siblings used a deck of cards and played high card wins for items more than one sibling wanted. Very few families have the temperament for this method.
In another estate battle, two sisters wanted the same ring but no directions were provided from their late parents. An estate settlement officer at their bank had a creative solution: a duplicate ring was made, mixed up with materials from the original ring, and each daughter got one ring.
Get Professional Help
Ask an experienced estate planning attorney how to address personal heirlooms best. In some states, you can draft a memo listing what you want to give and to whom. It is legally binding, if the memo is incorporated into a will or trust. If not, the Executor can consider your wishes. Make sure to sign and date any documents you create.
Make Gifts Now
Often a better approach, is to give away treasured items while you are still living. This way you ensure they are received by the right person, and you can see the joy they experience when receiving the item.
Get heirlooms appraised to decide how to divide items equitably, which to sell and what to donate. If heirs don’t want personal property, they can donate it and use the appraisal to substantiate a tax deduction. Appraisals will also be needed for estate tax and capital gains tax purposes.
Review Your Plan Frequently
It’s wise to review your last will or other estate planning documents at least every two to three years to ensure they still accurately reflect your wishes. Contact our office today to ensure you have the right estate plan in place.
Reference: The Wall Street Journal (July 30, 2023) “Pass On Your Heirlooms, Not Family Drama”
