Estate Planning From Estate and Trust Administration Perspective

As estate planners, we carefully listen to our client’s concerns and goals and prepare estate plans intended to fulfill the client’s wishes regarding the disposition of his or her assets. However, sometimes even the best-laid plans are thwarted by unforeseen circumstances. To a certain extent, there are steps that can be taken during the planning process to help facilitate a smooth estate and trust administration.

Tangible Personal Property

The disposition of tangible personal property is an area fraught with the potential for disputes, as evidenced by the recent death of Robin Williams and the fight between his third wife and his children from prior marriages over items of tangible personal property. In situations where tangible personal property passes to more than one person, for example a second spouse and children from a first marriage, the will should carefully define what items of tangible personal property are included in each bequest. Phrases such as, “I give the tangible personal property located in my primary residence,” or “I give my tangible personal property in substantially equal shares,” create potential interpretive disputes among beneficiaries. Does “all tangible personal property located in my primary residence” include a vehicle stored in the garage, or an item of jewelry that happened to be located there at the time of death? Does a division in “substantially equal shares” mean shares of substantially equal value, or shares of substantially the same number of items? Does a disposition of photographs include digital photos as well? To avoid disputes, care should be taken in the description of items of tangible personal property. Clients may wish to take an inventory of their tangible personal property and indicate the individual who is to receive specific items from the inventory. Another option is to add a fail-safe provision that, in the event of any disagreement among beneficiaries, the ultimate determination of which items of tangible personal property are distributed to each beneficiary is made in the discretion of an independent executor.

Provisions For Minor Beneficiaries