Some years ago, a client of mine and I were discussing her wishes for the distribution of her tangible personal property items—clothing, jewelry, paintings, silver, and the like. She told me she planned to give most of these items away while she was alive because “a warm gift is better than a cold one!” This phrase resonated with me and is one that I often now use with my clients.
To be clear, I am in no way recommending you give away all of your tangible personal property while alive—especially items you use and enjoy. However, if there are family valuables or objects you already know you want certain people to have, I recommend gifting these items during your lifetime.
WHY IS THIS A GOOD IDEA?
1. You will experience the joy of giving the item(s) to the receiver personally.
Usually, a Last Will and Testament or Trust document will outline who should receive items of tangible personal property after your death. This document might leave everything to one person or to a class of people, or it might earmark certain items to be given to specific individuals, called “specific bequests.” Instead of leaving this task to your Executor or Trustee, personally gifting a family heirloom during your life may be much more meaningful for both you and the receiver of the item.
2. Giving gifts of tangible personal property during life can avoid conflicts among family members.
Family members often will argue over family heirlooms, especially when all items are left equally to multiple children. Splitting the contents of the family China cabinet among three people, where no one receives a full set of plates, doesn’t make much sense!
I once had a client who disagreed with his sister as to who should receive virtually every item of their mother’s tangible personal property, and thousands of dollars in legal fees were spent negotiating over items—some of which could not have cost more than a few dollars! If their mother had gifted these items while alive, these conflicts and costs could have potentially been avoided.
3. Gifting during life avoids the potential expense of valuing and safeguarding the items of tangible personal property after your death.
Depending on the items to be distributed, they might need to be safeguarded, mailed to the intended recipients, or kept in storage until they can be distributed to the beneficiaries. These expenses usually will be paid by your estate—but the recipient may end up having to pay personally for these expenses.
4. Communication is easier during life!
Many of my clients do not wish to share information contained in their estate planning documents while they are alive. They are considered private documents. That said, failing to communicate with your beneficiaries is not necessarily a good thing. For example, if you once told your granddaughter she will get your diamond engagement ring after you pass away, it would be important to let her know that you actually disposed of it differently. While this may be a difficult conversation to have, you will have the opportunity to explain your reasoning to her personally and to give her another item of sentimental value instead.
What about items you aren’t ready to part with or still use? For these items, ensuring you have your estate planning documents in order and that those documents clearly indicate who is to receive any specific items of tangible personal property is crucial. I recommend that tangible personal property clauses in a Last Will and Testament or Trust be kept fairly simple, as it can become complicated and costly to list every item of property you own and who is to receive each one. For items that do not need to be expressly referenced in the Last Will and Testament or Trust, you may want to create an ancillary list of your tangible personal property and indicate which individual is to receive which item. While these lists are not legally binding, they will provide guidance to your Executor or Trustee, and they certainly help demonstrate your wishes.
As always with estate planning, communication is key!
Lauren C. Enea, Esq. is a Senior Associate at Enea, Scanlan & Sirignano, LLP. She concentrates her practice on Wills, Trusts and Estates, Medicaid Planning, Special Needs Planning and Probate/Estate Administration. She believes that it is never too early or too late to start planning for your future and she enjoys working with individuals to ensure that their plan best suits their needs. Ms. Enea received a B.S. in Business Management from Quinnipiac University graduating Magna Cum Laude and a J.D. from the Pace University School of Law graduating Summa Cum Laude. She is admitted to practice law in New York and Florida. She can be contacted at 914-948-1500 or www.esslawfirm.com
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24 Feb 2025
0 Commentsa warm gift is better than a cold one
Some years ago, a client of mine and I were discussing her wishes for the distribution of her tangible personal property items—clothing, jewelry, paintings, silver, and the like. She told me she planned to give most of these items away while she was alive because “a warm gift is better than a cold one!” This phrase resonated with me and is one that I often now use with my clients.
To be clear, I am in no way recommending you give away all of your tangible personal property while alive—especially items you use and enjoy. However, if there are family valuables or objects you already know you want certain people to have, I recommend gifting these items during your lifetime.
WHY IS THIS A GOOD IDEA?
1. You will experience the joy of giving the item(s) to the receiver personally.
Usually, a Last Will and Testament or Trust document will outline who should receive items of tangible personal property after your death. This document might leave everything to one person or to a class of people, or it might earmark certain items to be given to specific individuals, called “specific bequests.” Instead of leaving this task to your Executor or Trustee, personally gifting a family heirloom during your life may be much more meaningful for both you and the receiver of the item.
2. Giving gifts of tangible personal property during life can avoid conflicts among family members.
Family members often will argue over family heirlooms, especially when all items are left equally to multiple children. Splitting the contents of the family China cabinet among three people, where no one receives a full set of plates, doesn’t make much sense!
I once had a client who disagreed with his sister as to who should receive virtually every item of their mother’s tangible personal property, and thousands of dollars in legal fees were spent negotiating over items—some of which could not have cost more than a few dollars! If their mother had gifted these items while alive, these conflicts and costs could have potentially been avoided.
3. Gifting during life avoids the potential expense of valuing and safeguarding the items of tangible personal property after your death.
Depending on the items to be distributed, they might need to be safeguarded, mailed to the intended recipients, or kept in storage until they can be distributed to the beneficiaries. These expenses usually will be paid by your estate—but the recipient may end up having to pay personally for these expenses.
4. Communication is easier during life!
Many of my clients do not wish to share information contained in their estate planning documents while they are alive. They are considered private documents. That said, failing to communicate with your beneficiaries is not necessarily a good thing. For example, if you once told your granddaughter she will get your diamond engagement ring after you pass away, it would be important to let her know that you actually disposed of it differently. While this may be a difficult conversation to have, you will have the opportunity to explain your reasoning to her personally and to give her another item of sentimental value instead.
What about items you aren’t ready to part with or still use? For these items, ensuring you have your estate planning documents in order and that those documents clearly indicate who is to receive any specific items of tangible personal property is crucial. I recommend that tangible personal property clauses in a Last Will and Testament or Trust be kept fairly simple, as it can become complicated and costly to list every item of property you own and who is to receive each one. For items that do not need to be expressly referenced in the Last Will and Testament or Trust, you may want to create an ancillary list of your tangible personal property and indicate which individual is to receive which item. While these lists are not legally binding, they will provide guidance to your Executor or Trustee, and they certainly help demonstrate your wishes.
As always with estate planning, communication is key!