Planning for the distribution of personal possessions is essential to your estate plan. This part of the estate plan is often overlooked at the expense of the executor and the beneficiaries. In the article The Distribution of Personal Possessions, the executor found himself in a chaotic position because there was no plan in the will to distribute the vast amount of personal possessions. To avoid such chaos, give some thought to how you want your possessions distributed.

Creating a Plan for the Distribution of Personal Possessions

Creating a plan to distribute your personal possessions is not fun. This part of the estate plan is more about emotion than about value. So, you have to find a way to balance emotions with value to make a fair distribution plan. Otherwise, acrimony may result if one beneficiary received more in value than another beneficiary.

To alleviate the stress of planning for your possessions, consider the following:

• Decide on your beneficiaries and try to keep them in the immediate family. For those you choose outside the immediate family, consider giving them possessions of little value while you’re still alive.

• You need to inventory your property so you know what you have to give. You will also need to do this to estimate the potential for paying an estate tax.

• If you were able to keep your beneficiaries within the immediate family, discuss the inventory with them to see if conflict is possible. If there is conflict, have them get together and devise a distribution plan that they would think is fair. Once, they come up with a plan, insert it into your will.

• Make sure your executor understands the process if the person is not a beneficiary.

• Clear up any special circumstances that may affect your possessions with your executor. Try to avoid any unnecessary surprises for your executor as depicted in the article The Letter from the Homeowner’s Association.

An Idea for Complicated Estates

The above mentioned steps should relieve the stress in the planning process. However, not all estates are simple. Circumstances may complicate the planning process making conflict unavoidable. In complex estates, devise a distribution plan as fair as possible and attach a letter of explanation to the will. In the letter, give a considerate explanation of the details in the plan. This may not make the beneficiaries happy, but they will understand that this is how you wanted your possessions distributed. Hopefully, the letter will diffuse any conflict that would have resulted without the letter.

Have you given any thought about the distribution of your personal possessions? Please share your ideas in the comment section below.

Recommended Reading:

Plan Your Estate– Plan Your Estate by Nolo will go into more detail and provide more ideas on how to plan for the distribution of your personal possessions.