Our friends and loved ones inevitably leave some property behind when they pass away. One of the most overlooked categories of property in estate planning is tangible personal property (TPP). TPP is not a bank account or the money held in it, nor is TPP real property like a house or land. Rather, TPP is the “stuff” in our house, the “things” that we live with and interact with every day. Often, this property carries the most emotional value.
Estate planners and their clients often focus on big-ticket items such as homes, land, bank accounts, and investment/brokerage accounts. Of course, these assets would be the main focus of an estate plan because they make up the largest monetary value of the estate. However, monetary value is not always the most important valuation.
TPP is often the most fought over and most sought after property in a decedent’s estate. Imagine if your mother had a wedding ring that had been in your family lineage for four generations. That ring holds an almost incalculable value to the child wanting to continue passing down the ring. Even aside from heirlooms though, it is possible that many items of a deceased family member will be exceedingly valuable to their family when they have passed away. Losing a close family member is traumatic and sometimes a favorite book or blanket used by the decedent is comforting to the family
Another item that is highly valued by most family members are photographs. Before the rise of the digital revolution, there were indeed physical photographs. Yes, it is 2020, and many folks have gone digital, but there are boxes and albums and piles of physical photographs out there to be reviewed, sorted, and distributed. These are also frequently one of the most fought over assets among surviving family members.
If you’re wondering about digital assets, those are also some of the highly disputed assets that very often get overlooked. While there may be all those boxes and albums of photos, there are still those who chose to move with the times and stored many of their memories on their social media accounts. Taking these as well as email accounts and important password keepers are the small things that go unthought about all too often
The best way to ensure these items are distributed equitably or in accordance with your wishes is to actually write down what you want to happen. Many Wills or Trusts address personal property altogether in a large group with language referencing a memorandum or other writing that defines the distributions. This is smart because it will allow you as the client to review and update the list without needing a formal trust amendment or will codicil, but the problem is that most folks do not take the time to do it.
Take five minutes and think about items you have that others may want. If you already have an estate plan, write down those items and their distribution and keep that the list with your estate planning documents. If you need an estate plan, contact Tresp Law, APC, and ask about your personal property memorandum. We will help you think about and draft the document to be included with your estate plan from the start.
