Estate Planning

Letter of instruction for personal property

Family fights after death are often due to "stuff" you own. All states allow for non-financial assets to pass by virtue of a letter to your family outlining who is to receive your personal items.

In creating a letter of instruction, it is best to check with the person to whom you want to leave an item to make certain they want that item. After your letter of instruction is completed, sign and date it, and share a copy with your future financial caretakers and the person responsible for administering your estate. If you are up to it, also share the letter with all family members so there are no arguments after you die.

Revisit your letter of instruction at least once a year. Personal items and people in your life come and go and the letter needs to reflect those changes. The letter can be changed as often as you like without an attorney, witness, or any other individuals.

In addition to your letter of instruction, your will should give broad specification in regards to your other personal effects. If you are leaving items to more than one person, share in advance how you would like for them to divide your property. Here are some examples of ways families divide personal property:

• Have the executor assign a value to each item, add the value up, and divide that number by how many beneficiaries will receive the property. Give each beneficiary an amount "to spend" and have them take turns choosing property.
• Let each beneficiary take turns choosing an item. Start by drawing a number out of a hat to decide the order, then change it every rotation.
• Use a mediator to help disperse the property.

The remainder of the items can be sold at auction, in a yard sale, or given to charity. The proceeds or charitable deduction(s) can then be split between the beneficiaries. Let your family know in advance that you are okay getting rid of as many of your personal items as possible, as people feel guilty giving away the possessions of loved ones.

Another consideration is to give away as much as possible before you become incapacitated or before your death. By doing this, you can tell the story behind the object, enjoy the satisfaction of giving a gift, and help avoid future fights over particular items. And by simplifying, your family will be grateful you did not leave the burden of giving away your "stuff" to them.