For many people, estate planning revolves around wealth and their most valuable assets. This could include things like an investment portfolio, savings accounts, real estate or a family business. They know that these high-value items have to be passed to the next generation, and the estate plan gives them a chance to determine how that will be done.
All of this is important, but when people are making their estate plan, they also need to think about items that just have sentimental value. These could include things like a book collection, artwork from a parent’s house, and even simple everyday items like dishes, Christmas decorations or other home furnishings. Even though these items do not have much financial value, they can still lead to estate disputes, which is why it can be helpful to include them in the estate plan.
Why these disputes are particularly difficult
Disputes over sentimental items are, in some ways, harder to resolve than those revolving around high-value assets. A bank account can be split between multiple people. A home can be sold, and the money can be divided.
But for things that just have sentimental value, there is no point in selling them to split the money. They are not worth enough to make the sale worthwhile, and the beneficiaries are not interested in the money anyway. They want the items because of their emotional connection and their memories of the past. It is often impossible to divide family heirlooms, so deciding who gets which items becomes a point of contention.
A carefully crafted estate plan can help to lower the odds of these estate disputes. It is important to know exactly what legal options there are when setting up this plan.
