Sometimes Stuff Is the Most Important Part of Your Estate Plan
Most people usually think about who will receive their retirement and bank accounts, life insurance proceeds, real estate, and other valuable possessions upon their death. However, a person’s personal property (their stuff) can also be a source of value that needs to be addressed. When looking to start or continue your estate planning journey, ask yourself the following questions about your personal property: 1. Do your items have monetary or sentimental value? Value is in the eye of the beholder. Some items may have significant monetary value, like an antique clock, while others may have sentimental value, like your grandmother’s class ring. Each type of value necessitates its own strategy when planning for how you want to handle the transfer of the personal item. 2. Does more than one person want an Item? You may have an item that multiple people want. Being aware of this during your estate planning journey is important so you can address what you want to happen to the item to hopefully prevent conflict after you pass away. You should also think about how you want to balance inheritances if only one person will receive a valuable item or how you want to divide a large group of similar items. Talk to your loved ones so that everyone is on the same page and fights can be avoided. 3. What if no one wants an Item? While an item may be incredibly important to you, it may not hold the same level of importance to your loved ones. As you take steps to put a plan together, determine what will happen if no one wants an item. You could choose to have it be sold, donated, or offered to an acquaintance with a similar fondness for the item. Should You Include Your Personal Property in Your Estate Plan There are a few different ways you can share your wishes for your personal property through the use of an estate plan. 1. Specific Gift in a Last Will and Testament or Revocable Living Trust A specific gift in a last will and testament (will) or revocable living trust (trust) allows you to specifically name who will receive a particular item. In either a will or a trust, you can specifically state, “I leave my blue antique vase with pink roses to my daughter, Susan Jones.” When you die, the Personal Representative or Successor Trustee will then give the vase to Susan. However, if you change your mind, the will or trust will need to be changed, which will require a new document to be executed with the requisite formalities. 2. Personal Property Memorandum Another option that can be used in Florida is a document called a personal property memorandum. This document is where you list your specific personal property and names of those who will receive each item. As opposed to a will or trust, generally, you just need to sign and date the personal property memorandum to make it valid—no witnesses are necessary. The document is then referenced in your will or trust as containing your wishes regarding your personal property. This approach allows you to specifically designate who will receive an item, but if you change your mind, you can simply create a new personal property memorandum instead of having to change your will or trust. 3. The Residuary Clause Most, if not all, wills and trusts contain a clause that addresses any items that have not been specifically mentioned and distributed in the will or trust. This is referred to as a residuary clause. A will or trust may provide that anything left be “distributed equally to my living children” or “all to my spouse.” However, you can also decide to direct distribution to other individuals or entities. This ensures that your personal property is distributed. However, if the items are to be distributed to a group of people and you do not provide instructions for how the items are to be distributed, your Personal Representative or Successor Trustee will need to decide how to do so, which could cause turmoil. |
| Attorney Amy Pittman had a good time dressing up for Halloween with her daughter, Elle (Captain Jack Sparrow), her son, Reed (Military Sniper) and a few of her nieces and nephews. Attorney Audra Platt’s youngest son turned 2! |
| My Neighbor Said…My neighbor said if I create a Revocable Trust then I give my kids/beneficiaries control over my money. At Pittman Law Office, we establish Revocable Trusts for our clients. Revocable means it is amendable. The creator of the trust is called the Settlor/Grantor. The Settlor of a Revocable Trust can amend or revoke the trust as long as they have the mental capacity to change the trust. Well intended neighbors sometimes don’t give the best legal advice.If you are a Client of PLO, please contact us if you are receiving advice or suggestions concerning your Estate Plan before acting on the advice. Both Amy and Audra are responsive to emails from clients. amy@thepittmanlawoffice.com and audra@thepittmanlawoffice.com |
| Probate Corner – What happens if my loved one left behind unpaid debt? Surviving family members and/ or legal heirs are not personally responsible for debts in the name of a deceased person. A debt may be paid from the probate estate assets prior to distribution to the beneficiaries, but not all debts will qualify for repayment and not all assets must be used for payment of creditor’s claims. For example, homestead property is not subject to creditor’s claims and is an exempt property in some instances. Up to two vehicles are also exempt property. If a probate case is not necessary for an estate (because all assets had joint owners OR listed beneficiaries), then there are no assets from which a creditor could file a claim for payment and the debt will go unpaid. As you can see, this can be a complex issue so the most important thing to keep in mind is that there is no need to act quickly to pay debts in the name of the decedent. It is worth a discussion with an attorney. [Note: Payments associated with any real property MUST be paid to keep ownership of the property. This applies to mortgages, property taxes and utilities, just to name a few.] And remember we are a Florida law firm so we can’t speak to laws of other states on how creditors are handled in other states. |
| Upcoming Workshops Funding Revocable Trust Workshops This workshop that Attorney Audra Platt will be holding is only for current clients of Pittman Law Office that have Revocable Trusts. Date & Time: Wednesday, January 17, 2024 at 8:30am Location: Pittman Law Office, 3854 E. County Road 466, Oxford, Florida 34484 RSVP: 352-399-6944 Basic Estate Planning Workshop This workshop that Attorney Audra M. Platt will be holding is only for potential clients of Pittman Law Office that want to learn more about Estate Planning and our firm. Date & Time: Wednesday, January 24, 2024 at 8:30am Location: Pittman Law Office, 3854 E. County Road 466, Oxford, Florida 34484 RSVP: 352-399-6944 |
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