When you think about estate planning, you likely think about the most financially valuable assets you own, such as your house, retirement fund and bank account contents. However, it is equally important to account for your other assets, even if they do not hold much financial worth.
Personal items often hold sentimental value that far outweighs their monetary worth. Grievances over them can be just as problematic as those over the financially valuable ones.
Here are some ways you can plan for this:
Ask people which items they would like
An honest conversation with people can clarify who would like which items. It allows you to determine who gets what and make alternative arrangements for items that none of your nearest and dearest want.
Distribute some items while still alive
If you hand over an item now, it avoids having to mention it in your estate plan. Downsizing or selling up to move into a care home can be a great opportunity to do this.
List items in a personal property memorandum
For any items you do not give away now, it is better to note your decisions concerning them in your will or an attached personal property memorandum – think of it as an appendix to keep the main will text cleaner. It can avoid a tricky situation where two people each feel you would have wanted them to have a particular item.
With appropriate legal help, you can create an effective estate plan that covers all your assets, no matter their financial worth.
