One common issue for my clients is how to handle distribution of their “stuff” — what estate planning lawyers call “tangible personal property.” There’s a really easy answer, and you can get started on it right now! But first, some terminology:
Types of Property
Lawyers divide property into two major groups: “real” and “personal.” Real property is land and the objects permanently attached to the land (houses, office buildings, etc.). Personal property is everything else.
We also divide personal property into two major groups: “tangible” and “intangible.” Tangible personal property is property that can be touched, felt, or moved. It includes things like clothes, artwork, jewelry, furniture, cars, boats, and household goods. Intangible personal property is property that has no physical existence. This includes stocks and bonds, trade secrets, and the goodwill of a business.
Distribution Memo
So here we are talking about what to do with your touchable stuff that isn’t real estate. The answer is simple: just make a list! All you need to do is write down each item and say to whom you want that item to go. (We call that a “distribution memo.”)
Just say, “My 10-speed goes to my cousin, Larry Smith.” Or “my emerald necklace goes to my niece, Susie Brown.”
You get the idea. I recommend you type it up into a spreadsheet or word document, so you can make changes as need be. The key though, is to print, sign, and date your document. Once you do that, your list becomes binding. You should put it in a safe place (with your other important papers) and share a copy with your personal representative.
Now a few days go by and you realize you forgot to make a provision for your priceless collection of tea cozies. The solution is easy, though! Just revise your list on the computer, print it, sign and date it, and destroy your old version. It’s that easy, and the benefit to the people you leave behind is immense. Now, your survivors don’t have to argue over who gets what after your death. Instead, they can simply take what you left them and get on with mourning their loss.
So get cracking on your distribution memo today. And, if you need help with any of this, including prepare a will or other estate planning documents, please contact us for help right away!
