When you’re developing your estate plan, it’s often the little things that count. You may not have a hard time dividing up the value of your investments, the house, your vehicles and other major assets, especially if you intend to divide them roughly evenly between your children.
But what about your jewelry? If you’re a woman, you may particularly struggle to decide what will happen to your diamond rings. Your wedding set, for example, may have real monetary value – and even greater sentimental value. How do you divide your valuable jewelry without making one of your children the target of resentment by others? Here are some suggestions.
Get the rings appraised and balance out the gift
Generally speaking, there are several different ways to appraise jewelry. One looks at the “liquidation” value, or what an item might fetch if it were sold and the money divided as part of your estate. “Market” value is similar but reflects only current market conditions. For these purposes, you probably want a “replacement cost” appraisal, or what it would take to fully replace a piece.
Once you have that figure, you might decide to leave your eldest daughter, for example, your wedding set while giving your other children more of your remaining assets so that they know that you are attempting to keep things fair.
Have the diamonds reset to divide them among loved ones
What if you think that there is simply no way to avoid family conflict if you leave your rings to one child because of the sentimental value? What if you have all boys?
In that case, you may want to make provisions in your will that require your jewelry to be divided or possibly reset into new jewelry for each child. You might set aside funds in your estate just for that purpose.
There are all kinds of creative solutions that can be applied to family heirlooms. Having open conversations about your goals, the desires of your heirs and your plans can often create a path forward that will preserve family peace after you are gone. Having experienced estate planning guidance can help.
