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Protect What You Collect

October 25, 2024

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Author: David J. Shea

Insights

Protect What You Collect: Making a Plan for the Items You Hold Dear

When we sit down with clients who want to go through estate planning, the number one question we always get is: “Where will my money go when I’m gone?”

That’s an important question to ask, of course, but there is more to estate planning than just the money and financial assets you’ve saved throughout your life, and it’s worth examining what else should be included in your estate planning. We’ve worked with Michigan families for more than 20 years to build estate plans and we have found the following items to be among the most common discussion points.

Sentimental Items

It may come as a surprise to hear this, but most of the in-fighting that happens after a loved one passes away is over items that hold sentimental value. This can be tricky to navigate. For instance, which daughter would receive mom’s mixing bowl that they used to make cookies growing up?

When we sit down with clients, we make a point of asking about these types of items to avoid emotional arguments which may unintentionally erupt after you pass away. We’ll even suggest giving away some of these items before you pass so that there is no misinterpretation over who gets your most treasured items.

Collectibles

Whether it’s autographed baseballs or old comic books, we work with clients who have invested time and money into their hobbies over the course of their life to ensure those valuables are properly handled when they are gone. But this requires a different kind of planning. We often look at appointing a trust director who understands the finer points of a particular collectible industry – from sports memorabilia to art – and knows how to navigate assigning proper value to these items.

Separate Residences

Many people own vacation homes, but they don’t give proper consideration to how a second property might be distributed when they’re gone. It’s easy to believe those who receive it will welcome it with open arms, but there are questions you need to ask yourself before you add it to the estate: Will the jet skis and pontoon boat come with the house? Is it feasible for the beneficiaries to travel to the home? Depending on the value of the home, the person might also be on the hook to bear a tax burden they can’t afford. Having the conversation now, openly and honestly, will help inform a realistic and equitable estate plan.

Pets

Pets can be among the most overlooked areas of an estate plan. If you want your pet to be cared for after you are gone, there are several careful considerations. Be thoughtful about who has the capacity, the geography, and the demeanor to care for your pet. Your estate plan should also factor in expenses like vet bills and pet food when you decide who will give your pet a loving home.

Estate planning doesn’t have to be emotionally taxing. Working with a trusted partner, like Shea Law, will help to guide you through the process and have open conversations with family members about items of sentimental value. Documenting your wishes on these intangible but meaningful assets is part of our comprehensive estate planning process and will ensure clarity and peace of mind for your family for generations to come.

The information in this blog post is based on general legal and tax rules and is strictly for informational purposes only. It is not intended as legal or tax advice. Readers should consult their own legal and tax advisors as to their specific legal or tax situation as it may require more complex analysis, or the consideration of other information.