High-value resources tend to dominate estate planning. Homeowners worry about who takes possession of their houses, while business owners may plan carefully for the preservation of the organizations they run.
People generally realize they need to have clear legal instructions in place for financial resources, vehicles and other high-value assets. However, they may feel less concerned about addressing their personal property. Personal property includes assets other than real estate that are movable and that belong directly to one individual.
What are some of the possible solutions for personal property in an estate plan?
1. Beneficiary designations
Testators can include as many of their personal resources in a will or trust as they deem necessary. They can provide clear instructions to leave their furnishings, clothing and other personal property to specific beneficiaries or one particular individual.
2. Estate sales
Families once fought over heirlooms and property with sentimental value. Cultural values have shifted, and people frequently do not want the household items of deceased family members. Arranging for an estate sale in estate planning paperwork can allow beneficiaries to share the proceeds from liquidating personal property.
3. Charitable donations
There are numerous charitable organizations that accept donations of used clothing and household goods. Some of those organizations may sell items to generate revenue. Others may use donated goods to support people fleeing domestic violence or rebuilding their lives after homelessness.
There are many different ways to plan for personal property. Expanding an estate plan to address assets with limited economic value can dramatically strengthen an individual’s legacy and reduce the likelihood of their loved ones fighting over their property.