The Personal Property Memorandum: An Estate Planning Tool

A recent Wall Street Journal article entitled "How to Avoid Estate Fights Among Your Heirs" (Andrea Coombes, Dec. 15, 2013), highlighted one useful tool available in estate planning, a personal property memorandum:

[G]iven that family heirlooms can spark fiery conflicts, create a memorandum that details how you want to divvy up your personal property. ....

The memorandum describes who shall receive specific items. The will then references the memorandum; for example, "I direct my executor to distribute my tangible personal property in accordance with a signed and dated memorandum to be found with this will." ...

Make sure your executor knows where to find the memorandum, and be specific about items. In one example, a woman said her diamond ring should go to a daughter, but she didn't clarify which diamond ring, says Ms. Olsavsky. Attaching photos of the item and referencing each photo in your memorandum can help.

Another way to prevent arguments after you're gone: Give items away before you die.

2014 Estate & Gift Tax Exclusion Amount Increases

The lifetime estate tax and gift tax exclusion amount (also referred to as the unified credit amount, exemption amount, and applicable exclusion amount) increases from $5.25 to $5.34 million per person, effective January 1, 2014. The annual gifting exclusion amount will remain at $14,000 per person per recipient.

Why You Need an Estate Plan, Not a Will or a Trust

This short FOXBusiness article, published September 4, 2013, may help you to understand the difference between what clients often think they need, "a will" or "a trust", and what they likely need instead: an estate plan. (From which the phrase estate planning comes, of course.)