When a person in Colorado Springs is executing an estate plan, they may fall into the trap of thinking they can just split everything equally between their heirs. While this can be relatively straightforward with regard to bank accounts and other intangible assets, it can be more difficult when it comes to personal property. How does one handle the division of family heirlooms, such as grandmother’s wedding ring or a valuable painting? These tangible assets can be more complicated to address in an estate plan. This is because people may not know what these assets are currently worth, and these assets may have a lot of sentimental value for certain family members. That being said, it is just as important to include tangible assets in your estate plan as it is to include intangible assets.
First, it is important to ascertain the fair market value of each tangible asset included in your estate plan. Certified appraisers can assist with this. Once you understand the entire value of your estate and all its assets, it can be easier to determine how to divide it fairly.
Second, consider which heirs truly want the asset. If the asset is not one that can be shared or split between multiple family members, then care will need to be given with how to divide estate assets in a fair manner. For example, if an asset is left to several heirs, a person may want to include a buyout option in their estate plan, in case one heir does not wish to keep their share of the asset.
Estate planning is important, not just for your peace of mind, but for the peace of mind of your loved ones as well. However, careful thought should be given to the division of all assets, to ensure a fair result is reached. What is fair is highly personal and will depend on each person’s unique circumstances. Therefore, those wishing to execute an estate plan that includes tangible and intangible assets may want to seek legal advice before proceeding.