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What to Do with Grandma’s Ring: How to Divide Personal Property in an Estate

Posted by Gregory Robinson | Oct 23, 2024 | 0 Comments

When a loved one passes away, cherished memories often come to mind—perhaps a piece of jewelry like Grandma's ring, which holds both sentimental and financial value. However, dividing personal property in an estate can quickly lead to disputes, especially when there's no clear plan for who gets what.

The Emotional and Financial Value of Personal Property

While most estate plans focus on dividing big-ticket items like houses, cars, and stocks, smaller personal items—such as jewelry, heirlooms, and keepsakes—often hold deep emotional value. For example, jewelry is a common item of contention in estates because, while it's small, it can be worth a lot both sentimentally and financially.

In fact, some pieces may be worth far more than expected. Take the story of a British woman who bought what she thought was a costume jewelry ring for $13 at a yard sale, only to later discover it was worth over $850,000. Stories like this emphasize the importance of understanding the true value of items in an estate.

How Estate Plans Handle Personal Property: Residuary Clauses

In many estate plans, personal property is grouped together and handled through a residuary clause. This clause dictates how remaining property is distributed after specific gifts are made. While this may seem straightforward, it can become complex when multiple beneficiaries want the same item, like Grandma's ring.

Single Residuary Beneficiary

If only one person inherits the residuary estate, distributing personal property is simple—Grandma's ring and other items go to that person. They are free to keep, sell, or give away the items as they see fit.

Multiple Residuary Beneficiaries

When the residuary estate is left to multiple beneficiaries, issues arise. Beneficiaries often have to decide among themselves who gets which items. Ideally, they can come to an agreement, but disputes may arise when multiple people want the same item. In such cases, solutions might include:

  • Selling the item and dividing the proceeds.
  • One beneficiary buying out the others' interests in the item.
  • Trading or bartering other items to resolve the dispute.

If beneficiaries cannot agree, they may turn to the executor or trustee for guidance. Executors who are also beneficiaries must proceed carefully to avoid conflicts of interest.

Preventing Disputes: The Value of a Clear Estate Plan

To avoid family disputes, it's essential to create a comprehensive estate plan that includes clear instructions on dividing personal property. Sometimes, the best strategy is to distribute personal items while the owner is still alive. By discussing who gets what in advance, family members can avoid conflicts later on.

Our Estate Planning Services

At The Robinson Advocacy, we help clients navigate the complexities of estate planning and ensure that personal property is distributed according to their wishes. Whether you need help creating a plan or administering an estate, we are here to assist. Contact us today to schedule a consultation.

About the Author

Gregory Robinson

Attorney Gregory Robinson is a native of Alabama. He earned his Juris Doctor (J.D.) degree from Mitchell Hamline School of Law and holds a Master of Business Administration (MBA) degree from Rice University. Prior to practicing law, he worked as a strategy consultant in the financial industry...

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