Planning For The Distribution Of Tangible Personal Property: An Ounce Of Planning Is Worth A Pound Of Family Harmony

One of the most overlooked elements of an estate plan is the planning for the distribution of a person's tangible personal property. This property, which many people commonly referred to as "belongings," encompasses jewelry, furniture, clothing, household furnishings, silverware, cars, boats, art work, and other physical possessions. Without question, the distribution of these items is often the source of family disagreements following a person's death. Everyone has experienced first-hand a prolonged disagreement with family members over the distribution of a decedent's personal property or knows someone who has. It makes no difference whether the items have significant value or only sentimental value. Moreover, the cost of the conflict generated by such items can be disproportionately greater than their actual value. What is "fair" or "equal" will mean something different to each family and a client's distribution process should be tailored to fit a particular family's dynamics. While a planner cannot change the emotional and sentimental minefields involved, which may have been years in the making, a skilled planner can help streamline the process and, hopefully, reduce potential family conflict.

Most estate planning documents include a generic disposition of tangible personal property which might provide something like:

I leave all of my tangible personal property to my spouse, or, if my spouse does not survive me, to my surviving children as they may agree. If my children cannot agree, my personal representative shall divide the property among my children in his or her sole discretion. I ask that my family members and personal representative follow any wishes I may have expressed in writing or otherwise about the distribution of such property.

Clients frequently opt for such a standard provision for one of two reasons: they truly believe their children will be able to agree (and they often don't); or they believe they will have time to prepare a list of their wishes (again, they probably won't). Ideally, the client has a meaningful conversation with family members ahead of time but that rarely is the case. Planners often are complicit in ignoring the issue since it seems less important than taxes or other more apparently challenging topics. Nevertheless, a planner still can help prevent or mitigate family conflicts during a vulnerable time for the family by running through the following checklist of common issues.

Who is Included in the...