For some people, an inheritance is about the cash value. They want to inherit property that is worth money so they can either sell it immediately or allow it to grow in value and then sell it. For others, an inheritance has a much more personal, sentimental meaning. They hope to inherit meaningful items that connect them to their deceased loved one and perhaps even to generations before them. Unfortunately, sometimes the same asset that is worth money is also a sentimental family heirloom and two or more relatives want that same asset for different reasons. This creates conflict and can even lead to long-lasting family feuds, something most of us do not want when we are trying to give our loved ones something to remember us by. How can you pass on family heirlooms without causing a family feud? While there are no guaranteed methods, there are some things you can do that may minimize conflict between family members. Contact Roulet Law Firm, P.A. to speak with one of our estate planning attorneys to learn more about your estate planning options for leaving cherished family keepsakes peacefully. Call (941) 909-4644 if you are in Florida and (763) 420-5087 from Minnesota to schedule your consultation.
What Are Family Heirlooms?
Family heirlooms, sometimes referred to as keepsakes, are things that have been passed down for generations in a family. Often, these items are of significant value, but not always. Some people prefer to call more monetarily valuable items heirlooms and less expensive, more sentimental items keepsakes. Some family heirlooms can be unique, such as Dr. Robert Bruce Honeyman of Virginia's claim to pass on a Scottish King’s rib to his descendants, according to the Historical Society of Pennsylvania.
More common heirlooms include timepieces (like grandfather clocks or pocket watches), jewelry, bibles or other books, recipes, furniture, letters, diaries, scrapbooks, collections, handmade quilts, military memorabilia (such as dog tags or medals), wedding dresses and other vintage clothes, musical instruments, homes or land, trunks and chests, weapons, embroidered linens, kitchenware (like cast-iron skillets or copper teakettles), photos and photo albums, art (pictures, paintings, or sculptures) and stories.
Does a Family Heirloom Have to Be Expensive?
A family heirloom may have a high monetary value, such as a painting by a famous artist or a piece of real estate. Heirlooms can also be inexpensive and have a high sentimental value. Inexpensive family heirlooms could be things like a favorite childhood book or toy, old love notes, scrapbooks, or costume jewelry.
Many heirlooms are items that do not have an ownership title. For example, while both real estate and vintage motor vehicles could be heirlooms, they also have formal paperwork declaring ownership and allowing the owner to specifically name someone else on the paperwork to receive the item upon their death. Most heirlooms are smaller items that do not have formal paperwork associated with them, such as furniture and jewelry. This means that if the item is not specifically named in a will or trust as going to a particular individual, the heirloom may instead be considered part of the residuary estate. As a result, some items that may be considered an heirloom by one family member could easily be included with the rest of the estate, which is seen as having little to no value. Individuals may want to talk to their loved ones to find out which assets or other property their loved ones may think of as heirlooms that the testator themselves do not.
Are Family Heirlooms Part of Your Marital Estate?
Another way a family heirloom can cause conflict is when a couple divorces. There can be debate about whether a family heirloom is part of the marital estate. How the item was received matters when it comes to determining whether a family heirloom is marital or separate property. If the individual was the only one the item was given to, it would likely be considered separate property. If the item was gifted to the individual and their spouse, it may be subject to property division in a divorce.
If an individual realizes that they have one or more family heirlooms that may be considered part of the marital estate and wishes to preserve the heirlooms in the event of a divorce, they may want to consider a marital agreement. A postnuptial agreement can help protect these precious items if the spouse is willing to sign such an agreement. Roulet Law Firm, P.A. has experienced estate planning attorneys who may be able to help you determine if your heirloom is marital property, and if it is, review your options to keep it in the family if you divorce.
How Can You Pass On Family Heirlooms Without Family Conflict?
There is no guaranteed method of passing on heirlooms without family conflict. However, several steps individuals can take may help to reduce and possibly eliminate the chance of a family feud over these family keepsakes.
Speak With Your Loved Ones
Perhaps one of the easiest and most effective things an individual can do is speak to their loved ones regarding their feelings and expectations about family heirlooms. Many people merely try to divide their estate equitably among family members, or they rely on memory to give heirs the heirlooms they think they want. While a granddaughter may have once said she wanted her grandmother’s wedding dress when she was a small child, as an adult, she may prefer something more practical or with monetary value.
Discussing feelings and expectations with loved ones can help individuals determine which heirlooms each particular heir might want and which heirs might prefer something that has less meaning and more monetary value. This can make it easier to decide how to distribute their estate so that more heirs get precisely what they want and have less reason to argue.
Keep an Inventory of Heirlooms and Other Assets
Phantom assets are another source of family conflict when it comes to a deceased loved one’s estate. One heir remembers that their grandfather had an expensive pocket watch and insists that another heir must have stolen it, when the reality is that the grandfather sold the pocket watch several years ago. But because there is no ownership paperwork, no one can prove the existence or sale of the pocket watch. A grudge begins and may not end for decades, if ever.
By keeping an inventory of family heirlooms and other assets, individuals make it easier for their loved ones to find the items and to know exactly what the individual had at their death. This inventory can be updated by removing items that have been sold or given away or the individual can cross those items off and indicate their sold or gifted status so that their heirs can clearly see what might have happened to an asset they swear they remember existing.
Get Items Appraised If They Require It
If an individual has a lot of high monetary value heirlooms, they may need to be appraised for Minnesota’s estate tax or federal gift or estate tax purposes for the Internal Revenue Service (IRS). Florida does not have a gift or estate tax. Even if an individual’s assets do not trigger gift or estate taxes at a state or federal level, appraising the items may still be a good idea. Appraisal provides documentation of the item’s monetary value, making an equitable distribution of assets among heirs easier. Having the appraisal done also saves the individual’s heirs the time and money of having it done later.
Consider Gifting During Your Lifetime
Another way to reduce family conflict is to consider gifting family heirlooms during the individual’s lifetime. This allows the individual to witness the joy their gift brings to their loved one. More importantly for avoiding conflict, it also allows the individual the opportunity to explain to their loved ones why they decided to gift that particular heirloom to that specific heir. When loved ones can hear directly from the individual why they made their decisions, it can be easier to understand and respect that decision.
Use a Personal Property Memorandum
Minnesota §524.2-513 and Florida §732.515 both allow individuals to attach a personal property memorandum to their Last Will and Testament. This memorandum can be a handwritten document or one that has been typed, but it must be signed by the testator, describe the items and devisees (heirs) with reasonable certainty, and must be referred to in the will.
This memorandum can be updated and changed as often as the testator wishes without a lawyer as long as they sign and date each change. If more than one such memorandum exists, the most recent one is the one that will be used. This document can allow the individual to name specific items, give them to specific heirs, and detail the reasons why they are making this choice. This memorandum can be written before or after the will has been executed, allowing the individual extensive freedom to make necessary changes.
Speak With an Estate Planning Attorney About Passing On Your Family’s Heirlooms With Less Drama
Even when your estate is made up of only modern assets, there is always the possibility of family drama when you die, and your heirs learn what you left for them. When you add family heirlooms and the sentimental value they may hold for some family members and the monetary value those heirlooms hold for others, the possibility of conflict increases. A skilled Minnesota or Florida estate planning attorney may be able to assist you in creating a comprehensive estate plan that reduces the chances of your death causing a family rift. Call Roulet Law Firm, P.A. at (941) 909-4644 if you are in Florida and (763) 420-5087 from Minnesota to schedule your consultation and learn your options for leaving heirlooms instead of arguments.
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