10 August 2020

Wills: Dealing With Tangible Personal Property.

When thinking about your estate planning strategies, a Will is often front and center. This is an instrument that will help ensure that your assets go to your loved ones after you die, according to your wishes. However, a Will is essentially a static document, a snapshot in a particular time of your family, your property and what you wish to become of it later after you die. A well-crafted Will can include some elements of "future-proofing," but no instrument can anticipate every variable.

Naturally, reviewing your Will is prudent when major changes occur. Marriage, divorce, new children and grandchildren, buying or selling a home, moving, receiving a big inheritance, etc., are events that should trigger revisiting your estate plan.

But what of all the smaller property items, like household goods, artwork, vehicles, family heirlooms, etc.? It is impractical and unwise to try to list in your Will every item you want to give to your various loved ones. Can you imagine going to your attorney to revise your Will every time you acquired or got rid of some item, or changed your mind about a beneficiary? Determining who shall inherit your property and putting it to paper is aiming for a constantly moving target.

Fortunately, Minnesota law has a simple solution to untangle that problem. The law allows you to make a written list of your personal property items, and name the people you want to give each item to. The list must describe each item with reasonable certainty (don't just say "my tools"). It also must name each recipient with reasonable certainty (i.e., full name and relationship). The list must either be in your own handwriting, or be signed by you. Though not required, the list should also be dated.

The written list must be referred to in your Will, and the list may be prepared before or after the execution of your Will. In addition, you can later alter the list at any time, write a new one, or discard the list entirely if you choose. Don't forget to date the altered or new list. The beauty of the law is that you don't need to change your Will just to reflect your changes in the list.

The written list is "incorporated by reference" into your Will--it becomes a part of it--and the list will be followed accordingly when your estate is being settled. If you have made multiple written lists, the most recent list will govern, which is why it's important to date it. If an item on your list is missing at the time your estate is administered, the gift of that item will simply fail; the would-be recipient does not receive any compensation in lieu of the item and is out of luck.

The written list can only be used to distribute tangible personal property items, and the law carries some limitations. It cannot be used to leave real estate, investment instruments, life insurance policies, money, coin collections, or any property used in a trade or business. You cannot use the list to give money to charities. When you write a personal property list, be sure to store it in a safe place, preferably with your Will, so that your personal representative can access it when the time comes.

A Tangible Personal Property List is a helpful tool to be used in conjunction with your Will. It helps streamline the process of distributing your personal property items to your beneficiaries and may help prevent squabbling between your heirs. If you are considering a Will, or perhaps revising or replacing an existing Will, a good estate planning attorney can help you get started.