A Delicate Balance: Personal Property Addendum Versus Will Distribution

Recently, I wrote about “The Perils of Ignoring Personal Property”. When deciding how personal property should be distributed at death, another issue that comes into play is whether to use a Will’s Personal Property Addendum or to make a specific bequest within the Will itself. I’ve previously discussed what a Will’s Personal Property Addendum is and how it can be used. But the more practical question for many clients is when should it be used?

Consider the following hypothetical:

Sally Smith is busy working with her estate planning attorney to finalize her Will for signature. Sally owns a variety of personal property items including an original Matisse painting, her vintage Chanel wedding dress, an IKEA coffee table, and the cremated ashes of Molly, the family dog. Sally has two daughters, Peggy Sue and Linda Lu. Each item raises slightly different planning considerations.

• The Matisse painting is valued at $80 million and is the highest valued asset that Sally owns. Due to its high value, it would be prudent to distribute the painting by making a specific bequest in the Will. An attorney should draft the language for the distribution of such a high-value asset.
• The vintage Chanel wedding dress is valued at $100,000. Both Peggy Sue and Linda Lu are involved in significant relationships, potentially heading toward marriage, and have repeatedly lobbied Sally for the dress. Due to both the moderately high value of the dress and the potentially contentious nature of its distribution, again, it would be wise to distribute the dress by making a specific distribution in the Will.
• The IKEA coffee table is valued at $20. No one has expressed an interest in it. Sally intends to distribute it by using her Will’s Personal Property Addendum. The table’s lack of value and the lack of friction among the heirs regarding its distribution make the Personal Property Addendum an appropriate way to distribute it. Sally may also decide not to mention the coffee table at all, so that it might be sold in an estate sale, donated to charity, or otherwise distributed as part of her residuary estate.
• Molly’s cremated ashes have no monetary value but do have tremendous sentimental value. Molly and Linda Lu were particularly close. Linda Lu loved Molly and still talks about her frequently. Sally intends to distribute Molly’s ashes to Linda Lu by using her Will’s Personal Property Addendum.

Do you have questions about how various items of personal property should be distributed? Please let us know. We’d be happy to help.