When drafting an estate plan, many people assume that their most expensive assets will be the most complex. They’ll put a lot of time into figuring out what to do with their investment accounts, life insurance policies and real estate.
But the reality is that sentimental items may be more likely to cause disputes. It can also be more complex to divide them up between family members. These items don’t have nearly the same financial value as a house, a business or a retirement account, so why are they so complicated and likely to result in disputes?
Division is more difficult
The problem is that it can become difficult or impossible to divide these items between multiple beneficiaries.
Say that three beneficiaries disagree over who should get a book of children’s short stories. It has great sentimental value because they all remember reading it with their father when they were children, and he recently passed away. They would all like to have the book due to those memories. They also want to read it to their own children.
That particular book may be only worth $20, so they could clearly just go out and buy two more copies, but that won’t work because they are more interested in the sentimental value – they want that specific book. Additionally, because the book is only worth $20, it doesn’t make sense to sell it and split the money. Each person would only get under seven dollars, and they’re not interested in the money anyway.
Careful estate planning is needed with family heirlooms, so be sure you know what options you have.
