When making an estate plan, it is very natural to think of your most valuable assets first, at least from a financial perspective. Maybe you own stocks, bonds or other investments. Perhaps you have extensive savings. Maybe you need to figure out how you are going to pass valuable real estate, like a home or a vacation property, on to the next generation.
It is good to include these things in your estate plan, and it can be a viable place to start. You need to make important decisions about big assets, which can limit conflicts between family members.
But at the same time, do not forget your family heirlooms or the relatively minor assets that you own that have sentimental value to the beneficiaries. Even without significant financial value, these can cause disputes.
Why are these disputes difficult to solve?
Disputes about family heirlooms often revolve around sentimental value and nostalgia. It is an emotional time when a parent passes away, and adult children may have a connection to things like book collections, artwork, home furnishings or even sets of dishes or jewelry collections.
When there is an emotional connection, it can be difficult to resolve these disputes because both people want the exact same item. With financial assets, the easiest resolution is usually just to split them up in a fair way. But if two people want the same artwork from their parents’ home, it cannot be divided.
Moreover, because these heirlooms often do not have much financial value, beneficiaries are less likely to agree to sell them and split up the money that they earn. After all, their connection is to that specific item and the memories of their parents that are related to it, so they are not just trying to seek financial gain.
Drafting your estate plan
It can be helpful to talk with beneficiaries about family heirlooms in advance and incorporate them into your estate plan. Just know what legal steps you need to take to help things go smoothly and reduce the odds of a dispute.
