You may assume that your pieces of tangible personal property do not hold much monetary value and therefore it is unnecessary to include them in your estate plan. However, these pieces may hold significant sentimental value to your loved ones. So they should be able to fall into the rightful hands of someone who appreciates them the most at the time of your unfortunate passing. Please follow along to find out why you must instruct on personal property within your estate plan and how a proficient New York City estate planning attorney at Zimmet Law Group, P.C. can help you do so properly.
Why is it important to instruct on personal property within my estate plan?
Contrary to what you may initially assume, during estate administration, disputes commonly arise over pieces of tangible personal property rather than big-ticket, high-value assets. This may be especially true if you made arrangements for your real estate properties, bank accounts, etc., in advance, all while you neglected to mention who gets your clothing, jewelry, furniture, artwork, etc.
It may be impossible for your group of beneficiaries to agree on how this should be divided, because some may feel more entitled to certain items over others. With this, your executor may have their hands tied. Ultimately, this may prompt your beneficiaries to enter estate litigation proceedings, so that the New York State Surrogate’s Court can decide on their behalves.
What should I know about a residuary clause?
To avoid the petty arguments over tangible personal property and the headache of estate litigation, it is in your best interest to incorporate these pieces into your Last Will and Testament and revocable living trust. Namely, you may state exact instructions that read, “My furniture collection should be inherited by my eldest daughter,” in your will document. Then, you may appoint a reliable trustee to disperse the specific property that funds your trust to a designated beneficiary upon your death.
Importantly, you should include a residuary clause within your will document and trust. Essentially, a residuary clause sets out that any items not mentioned explicitly within your estate planning documents should go to a specific beneficiary. For example, you may instruct, “The rest of my unclaimed tangible personal property should be inherited by my eldest daughter.” This, again, avoids controversy over who gets what. And it takes the pressure off yourself a little bit, because we understand how nerve-wracking it may be to catalog each and every one of your personal possesions.
If you think now is the time to get started on your estate plan, then please reach out to a proficient New York City estate planning attorney. Our team at Zimmet Law Group, P.C. is well-equipped to take on your case.
