Personal property can introduce challenges to the process of estate planning. Such property could include valuable collectibles like antiques, art, coins, jewelry and more. One of the issues with personal property as part of an estate is that it can easily be forgotten, lost or taken by family members or others. Colorado residents with valuable collectibles may want to investigate options for tracking. There is software available for this.
Sharing inventory lists with family members, attorneys and other advisors can also help reduce the likelihood that these kinds of assets will go missing. Serial numbers and photographs are among the ways that items can be documented. Collectors may want to use safety deposit boxes, alarms or other methods to secure items. Insurance could provide added protection.
For some types of items, such as art and antiques, documentation can be particularly important. This documentation could include bills of sale, invoices, artists’ notes and more. Appraisals are important as well, but they can also be difficult to get. The market for art can be volatile and appraisals can vary widely. However, one reason it is important to get an accurate valuation is to assess whether estate taxes might be levied.
For many adults with lots of assets, it’s wise to discuss estate planning intentions with family members and potential heirs. This could help make the distribution process less contentious in the future. In addition, there are many other problem-diffusing strategies that could be accomplished with trusts and other estate planning tools. An attorney may help a client understand their options.