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TRANSFERRING PERSONAL PROPERTY

Bill TaylorNortheast Area Community Development

EducatorUW Extension

The University of Wyoming is an equal opportunity/affirmative action

institution.

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PLANNING AHEAD; DIFFICULT DECISIONS University of Wyoming Extension bulletin series; September 2013; Aaron Lyttle, Cole Ehmke, Mary Martin, Bill Taylor; available at http://www.wyomingextension.org/publications and enter Lyttle as author

Who Gets Grandma’s Yellow Pie Plate? A Guide to Passing on Personal Possessions (1999) University of Minnesota. MI-6686-WG. 800-876-8636. www.yellowpieplate.umn.edu/

References

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Passing It On: An Estate Planning Resource Guide for Wyoming’s Farmers and Ranchers; published by the Wyoming Agriculture & Natural Resource Mediation Program and the University of Wyoming Extension, February 2011

References (cont.)

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We all have personal items that are important or precious to us or to those that are associated with us

In estate planning, personal items are often ignored, yet they may cause some of the most significant emotions and conflicts

Who Gets My Personal Stuff?

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Personal items that do not have a registered title, such as land or vehicles

Non-titled property includes items like:

What is Non-Titled Property?

• Guns, sports equipment• Tools• Furniture• Books, papers• Dishes• Collections• Hobby or handmade items• Linens, needlework, quilts• Clothes

• Jewelry• Tack• Photos, pictures• Personal care items• Antiques• Gifts• Toys• Musical instruments• Anything with emotional

and/or economic value

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Inheritance is not simply an economic and legal issue and personal items are a major part of the process

Complex emotional and family relationships impact decision making

Inheritance decisions concerning personal property involve economic and emotional consequences and can enhance or destroy family continuity

Families and Personal Inheritance

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There tends to be less stress and emotion if a plan is developed before death

While property holder is of clear mind and sound health, if possible

Families and Personal Inheritance

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Sentimental meanings make decisions more emotional

Objects involve the process of grieving and saying goodbye

Objects help preserve memories, family history and family rituals

Unique Challenges for Personal Property Transfer

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Being “fair” is more complex:◦ Personal belongings have different meanings◦ Difficult to measure worth or value◦ Impossible to divide items “equally”◦ Unresolved conflicts may interfere w/ objective

decisions Distribution methods and consequences are

less-clear

Unique Challenges for Personal Property Transfer (cont.)

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Who is involved? ◦ Children? Spouses? Grandchildren? Siblings?

Others? How do we proceed?

◦ Who is informed and when? How is a value established for each item? Can long-distance methods be used?

When do we proceed?◦ Does everyone have to be present?

What methods and standards should be used to maintain consistency?

Questions to Answer

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Family members will consider the process unfair if they feel moral and ethical standards are not followed or they have no voice in the decisions

Unfair?

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These are sensitive issues◦ Will create internal stress even in well adjusted

families Include family discussions & conferences

◦ Values & goals◦ What is “fair” versus “equal”?◦ What is important to the family? To the person

who will pass on the personal items?

Factors to Consider

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Select meeting place & time Designate someone to record decisions made

◦ Unrecorded decisions will be a source of disagreement later

Who is included?◦ Parents & siblings only?◦ Do siblings act as representative for spouses &

grandchildren?◦ Include spouses? Grandchildren? Other family

members?◦ What about friends, significant others, ex-spouses,

caregivers, attorneys, mediators?

Family Meeting

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Determine shared goals:◦ Maintaining privacy?◦ Improving family relationships?◦ Being fair to all involved?◦ Preserving memories?◦ Contributing to society?

Family Meeting (cont.)

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Provide everyone involved with a copy of Rules for Deciding Who Receives Which Items ahead of time and then discuss the questions one by one at the meeting◦ Try to reach consensus

If necessary, go ahead to inventorying items, and then come back to those questions creating differences

Family Meeting (cont.)

*Handout: Rules for Deciding Who Receives Which Items

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Other questions for consideration:◦ Are there other goals beyond those that were

listed that you feel are important?◦ Which goals are the most important to you and

which least important?◦ Do any of your own goals conflict? Do any of the

goals of family members conflict?◦ Are there others (other owners, other family

members) that need to have input into these goals?

There is no perfect method – stay focused on your goals

Family Meeting (cont.)

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Final decision for disposition – property owner(s)

Once potential heirs are given opportunity to express wishes, they should respect decision of those passing on their “stuff”

Family relationships and continuity are VASTLY more important than the possession of “stuff.”

Who Decides?

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Inventory

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Owners and recipients work together Start in one location – house, barn, garage,

etc.◦ Work systematically from one end to the other

Don’t overlook items◦ Some will be important to owners, some to

recipients, some to both, some to neither You won’t know without looking at each item

Inventory (cont.)

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Leave last two columns (“Requested By” and “Agreed Receiver”) blank for now

Work from room to room, building to building

Most people don’t think they have much, but once the inventory starts it may take multiple days

Inventory (cont.)

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Provide copy of inventory to recipients◦ From previous discussions:

Do all extended family members get a copy and a voice?

Do siblings act as a representative for their spouses and children?

Does the owner make the determination w/o any requests?

Request of Items

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Final decision belongs to owner, but usually best to encourage communication from potential recipients◦ We often don’t know what is important to others◦ The item which created the most difficulty in my

parent’s property dispersion was the cribbage board desired by two granddaughters, because they both treasured the memory of playing cribbage with their grandfather.

Request of Items (cont.)

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Family members mark those items they desire in “Requested BY” column w/ their initials

Transfer all requests to a master list◦ Some items will have multiple requests◦ Some items will have one request◦ Some items will have no requests

Request of Items (cont.)

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This is usually the responsibility of the owner if they are physically & mentally capable◦ If not capable or deceased, responsibility will fall

to appointed personal representative Items w/ one or no requests can be decided

relatively easily

Assignment of Items

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For items that are requested by multiple persons, some decision format must be used◦ Owner might consider each item and those

requesting it and allocate items according to their own values and desires

◦ Alternative methods: Shake dice

High roller – 1st choice Second high – 2nd choice After going around, reverse the order of those choosing After everyone has chosen twice, roll again for a new

order

Multiple Requests

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◦ Alternative methods (cont.): Draw

Each draws number, straw, card, etc. which determines choice order as with dice

Private Auction Family buys items in auction using real or “funny”

money, marbles, chips. Real money goes to owner or estate Real money allows richer family members to have an

advantage Silent Auction

Written bids placed on items Real or substitute money can be used as in private

auction

Multiple Requests (cont.)

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Alternative methods (cont.):◦ Grouping preference

Selection begins w/ oldest, proceeds to youngest Males first, then females Etc.

◦ Generation preference Priority given to parents, siblings, children,

grandchildren, blood relatives, etc.◦ Others

Public auction, yard sale, estate sale, etc. Proceeds to owner or divided by agreed on formula

Multiple Requests (cont.)

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Gift the items immediately◦ Not usually practical for all items if the owner is still

living◦ Some items could be distributed now, if owner is

willing to part with them Items to be distributed later

◦ Complete Personal Property Memorandum Binding document Must be referred to in will Keep on file w/ will or other legal documents List each item & name, address, & relationship of

recipient Each page must be signed & dated

Legal Transfer

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For items removed or added to list◦ Sign & date new page with changes

Changes

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Personal items preserve and carry forward the family culture and heritage◦ Tell stories about the family and the source, use,

importance of items as they are inventoried, assigned and gifted

Use the estate planning process as a way to pass on, not only animate objects, but a sense of the past, the values, and the history of the family

Family Culture & Heritage

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Questions? Comments?