September 13, 2016
Failure to plan for the distribution of tangible personal property often results in unnecessary conflict and hard feelings among children and other beneficiaries. While tangible personal property normally does not make up a significant percentage of a deceased person’s estate value, proper estate planning can avoid the extra expense and conflict that can result when dealing with tangible personal property.
Estate Planning and Tangible Personal Property: The Little Details Matter
Part of our estate planning process involves a discussion about the “little things” like your tangible personal property. During the estate planning process, we ask about personal property items, such as jewelry, cars, furniture, clothing, photographs, books, silver, coins and any other items of tangible personal property that you may desire to be distributed to certain beneficiaries. These items are often overlooked, which can result in conflicts amongst your children or other beneficiaries.
Give Yourself Peace of Mind
A properly crafted estate plan can give you peace of mind, knowing your assets and family are well protected. Our estate planning lawyers will help you get there.
Did you promise a grandchild your car, or promise a daughter your wedding ring? If so, those promises should be put in writing so that other children do not object. Without a proper written and signed document, the specific items that you have promised a loved one may not be distributed according to your wishes if you still retain possession of them at the time of your death.
Lack of proper documentation can result in an argument that the car that you intended be given to a specific grandchild, should be sold and the sale proceeds distributed amongst all of your beneficiaries – or in an argument that the wedding ring was not left to your daughter, and so should be sold and the funds distributed to all of the beneficiaries.
Failure to properly address these “little things” can result in life long grudges and family conflicts, that could be avoided with proper thought and estate planning.
Avoid Conflicts After You Are Gone
It is fairly easy to avoid these type of personal property errors and disputes in Wisconsin during the estate planning process. For major items that you know who will receive them and that are not likely to change over time, our estate planning attorneys can place a specific bequest in your Last Will and Testament or in your Trust specifically distributing personal property items to certain beneficiaries.
For example, it can be as easy as stating as a specific bequest in your Last Will and Testament or Trust that “any car that I may own at the time of my death shall be distributed to my son Robert.” Or, by way of a specific bequest that qualifies it to a certain item you now own, such as “my 2014 Toyota Camry, if I own it at the time of my death, shall be distributed to my son, Robert.”
Being specific on the little items in your Last Will and Testament or Trust will result in the person you promised or intended to receive a personal property item actually receives the item.
Using a Personal Property Memorandum
In Wisconsin, we can also use a list separate from your Last Will and Testament or Trust to make the distribution of tangible personal property items easier and more flexible.
Since most people are not sure to whom they want to leave personal property, and because the list of what-goes-to-whom will change over time, our lawyers often utilize a Personal Property Memorandum form. We incorporate this form into the Last Will and Testament or Trust by including a Personal Property Memorandum clause that sets forth that any signed and dated Personal Property Memorandum or list shall be incorporated into the client’s Last Will and Testament or Trust. Then, we provide our client’s a separate Personal Property Memorandum form, all ready to be filled in by our clients with the tangible personal property items to be distributed and the names of the beneficiary of each item.
Our clients can complete and update his or her intended distribution of personal property at death, with the use of a simple Personal Property Memorandum form that we have given each client. We will also give clients new Personal Property Memorandum forms as needed, for free without any cost or charge.
A Personal Property Memorandum Has Key Advantages
The use of a Personal Property Memorandum has several key estate planning advantages in Wisconsin, including the following:
- A client can update a personal property memorandum list on his or her own without having to see an attorney and without incurring any additional costs or expenses.
- It is flexible and allows for easy changes and revisions without having to update a Last Will and Testament or Trust.
- It avoids conflict amongst beneficiaries and children, since each time you promise a certain personal property item to a child or other beneficiary, you can easily update your Personal Property memorandum form.
What Items Can Be Left to a Beneficiary in a Personal Property Memorandum?
You can leave tangible personal property to beneficiaries using a Personal Property Memorandum form, such as the following:
- Furniture
- Jewelry
- Cars
- Photographs
- Books
- Artwork
- Silver, Coins, Stamps
- Other similar items
You should not leave these type of items as they are not considered Tangible Personal Property:
- Money
- Stocks
- Bank Accounts
- IOU’s
- Promissory Notes
- Intellectual Property such as copyrights
- Similar Items
Legally Included in Your Estate Plan
To be legal in Wisconsin, the Personal Property Memorandum list should specifically detail the items and beneficiaries, it must be incorporated into your Last Will and Testament or Trust, and it must be signed and dated. A list alone will not be legally valid in Wisconsin, unless it has been incorporated into your estate planning documents such as your Last Will and Testament or Trust and meets the other requirements set forth above.
(To be very clear, simply putting a sticker on an item is not likely to work legally in Wisconsin. The sticker approach has other problems as stickers can be easily moved from items intentionally or accidentally fall off.)
Get Help with Your Estate Plan
The little details matter, and the distribution of personal property can often lead to conflict after you have passed away. By following a few simple steps during the estate planning process, we can help you avoid these conflicts.We can provide our clients with a simple and flexible way to distribute personal property items at death. At Wokwicz Law Offices, LLC, we provide the necessary expertise and legal documents for you to easily and legally distribute tangible personal property by way of a Personal Property Memorandum.