We routinely draft wills and trusts with provisions for a Personal Property Memorandum-a separate form that we give to our clients to complete at their convenience. When we draft our clients' wills or trusts, certain assets get divided among beneficiaries (family and friends named to receive gifts from the estate) according to our clients' wishes. But we can not list all of the clients' personal property in a will or trust and oftentimes, we include directions in the will or trust that the beneficiaries should agree to fairly divide personal property among themselves-this can be an extremely arduous process for the Personal Representative or Trustee and cause very hard feelings among beneficiaries.
Fortunately, a Personal Property Memorandum alleviates these potential hazards. The Memorandum is simply a list addressed to the client's Personal Representative or Trustee that identifies persons to receive specific items such as jewelry, collectibles, photographs, family heirlooms, china, and other property that is typically found in a home. It is an informal document, not requiring witnesses or a notary public or an attorney's involvement. It can be torn up (revoked) and rewritten as often as the client wishes.
While there are limitations--it cannot be used to transfer assets such as real estate or automobiles or sums of money-we believe that a personal property memorandum is invaluable. Why? Many times, those ordinary things that are found in the home are considered priceless by the family: it may not matter whether the jewelry is real or costume, it has great sentimental significance.
Personal Property Memorandums have three main benefits. First, a Personal Property Memorandum relieves the client's Personal Representative or Trustee of having to divide up personal property between whoever the client names as a beneficiary under the client's will. Second, it gives beneficiaries a definite answer as to who is to receive what object, there is less potential for hard feelings and conflict between two beneficiaries who would have been equally entitled to an item under the client's will or trust. Third, a Personal Property Memorandum gives the client an added amount of comfort knowing that he or she has designated special people to receive special items...these special people can be anyone: friends, family, neighbors, etc., and need not be mentioned anywhere in the formal will.
To fill out your Personal Property Memorandum, make sure you identify the item to be given and the recipient with enough detail so that your Personal Representative or Trustee understands your intentions clearly. Remember: completing a Personal Property Memorandum is not a requirement, but it can ease tension in a family after your death and it can give you the peace of mind of knowing that you have remembered those special people in your life. If you have questions about the Personal Property Memorandum or believe that your will or trust documents need to be updated, please contact us.