estate
When It Truly Fills Your Heart
There will be many blogs posted today sharing what the authors are thankful for. Listed will be the normal family, friends, health, wealth and love for which people give thanks. We, too, are extremely thankful for all of these, and take time each and every day to give our thanks!
As business owners, though, Mike and I have so much more to be grateful for. And as home inventory professionals, our thankfulness goes very deep. That’s because what we do truly fills our hearts.
You see, we aren’t just certified inventory professionals. We don’t just provide a service that counts things. We have found over the years that we do so much more than that. As a result, we receive so much more back! And that, my friends, is what I’d like to share with you today.
We are thankful that we:
- help people prepare for disaster so they can be ready and recover quickly and sufficiently
- help fire victims sort through the rubble and establish some organization so they can submit an insurance claim quickly
- help theft victims get past the emotion faster and replace what was stolen sooner than if they tried to do this on their own
- can take the burden of this responsibility off of an executor who is also the son, daughter or sibling of the deceased
- assist with financial planning and estate planning, so these clients know it’s truly a gift to their children to have this information included in these documents
- provide peace of mind
- have served customers who have expressed fear, shown sadness, displayed anger and shed tears
We are thankful for all of our customers, and we are thankful for what we receive in return when we serve them.
How many professions can do that? Not many. We’re grateful that we found one that does!
Happy Thanksgiving!
Personal Property Inventories Save Executors Time and Money
I doubt there are many adults who have not experienced the loss of a loved one. As adult children, I’m sure a lot of you are listed as the executor for your parents. Thinking of what you will go through is not a topic anyone wants to consider. But the fact is, you will have to. And being prepared for it will make the task a little less emotional.
In addition to providing our personal property (home) inventory service for disaster preparedness and recovery, we create an inventory of estates to help executors complete this requirement. Jim’s story – not his real name – is very similar to many others.
He lived out of state and was traveling quite often while settling his dad’s estate. The visits with the attorney, getting the house ready to be placed on the market and making the four-hour-drive back and forth had begun to take their toll on him. Therefore, he had delayed doing the inventory of the contents of his father’s home. He was informed by his attorney that he could no longer put it off, so he picked up a tablet and pencil and sat down and stared at the paper for the better part of an afternoon.
He just couldn’t do it. Having to record all his father’s belongings was too emotional, too gut-wrenching, too sad. He knew it would take time and he really needed to get back home and back to work. Another trip would mean more time, more emotion, and more expenses. He called his attorney and stated how he felt. Additionally, he didn’t know what fair market value to place on each item even if he could create the list. He was feeling helpless.
His attorney gave him our contact information, along with a personal recommendation. Jim told us that he was just overwhelmed and couldn’t even figure out where to start or what to do. Since this is our business, we were able to handle the task quickly and professionally.
Will this be one of your children some day? Creating your inventory now will be a kindness you can give to your executor (son or daughter) at one of the most emotionally torn times in his or her life.
Let them know that you have the inventory and where it is. If you hired a personal property inventory service, give your executor the information so they’ll be able to obtain the documentation when the need arises. They will be grateful.
Executors Are Rarely Prepared for the Task Ahead
Many people who experience the death of a spouse, parent or other close relative are not prepared for the number of tasks involved in settling the deceased person’s affairs. When assigned the responsibilities of being an executor, hiring a personal property inventory service provider will ease the process.
Many states require a formal inventory of the estate be prepared. The timeframe this is required to be completed is within two months. Completing a personal property inventory can be a cumbersome process. The person stating the value of the contents of the estate must include the values as of the date of death.
It can be very difficult for the executor to determine the value of each item and could very likely under-value the estate. Sometimes it is difficult to know if furniture pieces are true antiques, or very well-created knock-offs. Or possibly they are just old, but not categorized as an antique. A certified appraiser’s expertise might be in order. Fine artwork and jewelry are other areas that will often require a certified appraiser’s assistance (we provide names of qualified appraisers when this is required).
Another issue an executor faces is the chance of over-valuing items. Sometimes emotions and sentiment can cloud normally good judgment to the point that the values of small, every-day nick-knacks are overstated.
The process of creating an inventory can be extremely time-consuming. Often executors live in a different city that would require multiple trips when serving the duties required. Adding one more trip to conduct the inventory could disrupt their work and family responsibilities even more. The cost of hiring a professional home inventory service would most likely be less than the cost of the travel.
Additionally, dealing with the emotion that creating this inventory stirs up is often very difficult. One of our customers stated that it was just too much for her to dig through her dad’s belongings.
Along with dealing with the stress and emotions of creating the inventory, the executor is also responsible for distributing the decedent’s belongings. The inventory written report can be used to help with this process. A customer who had siblings in various areas of the country emailed the list to each brother and sister and asked them to note what they were interested in receiving. Since the values were already stated, it was easy to see the amount these items were worth in proportion to their share of the estate. The executor’s task ws much easier because he knew who wanted what, rather than just guess and give an item to someone who had no interest in that specific piece of artwork, furniture or china.
Obviously, there are many reasons to have a professional, third party inventory service create the document for the estate. An estate attorney, funeral director or CPA would be a resource for a referral.
When to Use an Inventory Service or Appraiser
It is important to know what you own, for many reasons. The most common purpose is to be prepared for a disaster so you can maximize an insurance claim. This is achieved because you’ll be able to remember and prove possession of the contents of your home or business.
What is personal property?
Personal property is best described using this scenario: imagine cutting the roof off of a house, turn the house upside down and shake it. Whatever falls out is personal property. Therefore, furniture, electronics, artwork, linens, sports equipment, appliances, clothing, food, cleaning supplies, area rugs, etc., are all personal property. On the other hand, items affixed to the floors, walls and ceilings are not considered personal property – they are part of the structure. These are items such as built-in bookcases, lighting, flooring, crown molding, counter tops, etc.
Who should document your personal property?
I’m assuming that you don’t want to tackle this task on your own. It can be time-consuming, boring and frustrating when you continue to get interrupted. So, when it’s time to create this document that compiles the report of your belongings, should you use an inventory service provider or a certified appraiser?
Knowing the difference between the two professionals will help you make that decision. Often you’ll decide to hire both, each providing their specific niche.
Most often, a personal property inventory service provider is the professional you’ll want to utilize for a whole-house or business personal property inventory. This can be for disaster preparedness, disaster recovery, estate settlement, financial planning, moving, placing items in storage and estate planning. For a business owner, this information is also used to know the value of the company assets, for dissolution of a partnership, buying or selling a business, to keep track of all assets and where they are, and to ensure personal property taxes are being correctly filed. Both homeowners and business owners can also benefit from this report as backup documentation when claiming an uninsured loss on income tax returns.
When hiring a professional to create an inventory, the most cost-conscious decision would be to hire a personal property inventory service provider. There is no certification required for this industry, and therefore, their rates are much lower than a certified appraiser.
An appraiser is certified to review, examine and then estimate the value of jewelry, artwork, china, silver, coins, antiques and high dollar value collectibles. Certified appraisers spend many hours earning their designations through experience and education. Appraisers’ rates can vary widely. Some charge per item while others have an established hourly fee.
Hiring both professionals is most often the financially sound decision. First, hire a home inventory service provider for all the normal household items. Then, once that is complete, a certified appraiser can offer their expertise only on the items that would require special assessment.
Prenuptials and Personal Property Inventories – The Perfect Marriage
Perfect marriage. These words bring smiles and tears of joy – most of the time. Sometimes, however, there is concern when two households are merging into one and adult children are left wondering what happens after their mom or dad remarries. The “perfect marriage” I’m talking about is between a personal property inventory and a prenuptial agreement.
There is a common concerned among adult children that a favorite family heirloom will go to the new step-parent. Or, even worse, to the new step-siblings if their own parent’s entire estate goes to the remaining spouse.
These concerns can bring discord among the family members, especially the adult children who fear they will be affected. This can lead to friction, resentment and distrust. And, of course, this flows over into the lives of the two people who are planning a wedding. Emotions are high, and all too often remarks are made that would have been better left unsaid. It is frequently not that they don’t welcome the new marriage, but instead, it is the fear that they will be denied a part of their family heritage. And that means they fear having the memories taken away, too.
To help alleviate these issues, a prenuptial agreement and a personal property inventory should be compiled by both the future bride and groom. These documents will enable everyone to feel confident they will not be left “high and dry” when it comes to their inheritance. And it’s not just high-value heirlooms. Is there a quilt that has special meaning? Maybe a vase mom always put the hand-picked flowers in? Or some hand tools they shared with dad when working on the car together? A special picture frame, candy dish, clock, candle holder … often it’s the memory and sentiment that causes the most emotion – and resulting discord.
An inventory of each of the households prior to combining the contents will show who owned what before the marriage. There is no limit to how many items can be included on the list of contents. Ask all involved to gather in a friendly, casual atmosphere. Create the list together so everyone knows and exactly what is being stated on the list. Placing the names of who gets what next to the specific items will let the family members and the courts know your intention.
Referencing the inventory in the will can serve as a letter of instruction in the State of Indiana and other states. If that is not the case in your state, the document will at least help the executor carry out your wishes because he or she will know your intention.
So, if you, a family member or friend are preparing to marry, and adult children are in the picture (whether they are showing concern or not), consider how much stress, heartache and (unfortunately) quarreling can be avoided by having a detailed inventory recorded prior to the marriage.
If the knot has already been tied, this can still be accomplished by using the same process. You’ll just do this with both families in attendance. Then, all should be well in the merged household.
You may now kiss the bride.
Personal Property Inventory – Don’t Put Loved Ones Though This Experience
If you have been an executor of a parent’s estate, you completely understand the difficulty of creating a personal property inventory of their belongings. For those who are fortunate enough to not have experienced this yet, you can be grateful. But you can also be prepared by encouraging your family members to have an inventory. Additionally, having an inventory of your belongings will save your executors – your children – from encountering this extra grief.When a parent dies, it is obviously an extremely emotional and sad time. Once the arrangements are made and the funeral is over, you want the time to heal. But there are requirements that you must tend to. Providing a personal property inventory is one of those requirements.Imagine going throughout the house, listing everything he or she owned. The memories come back, and the pain and emotions are back on the surface again. This process takes quite a long time because you’ll stop often as you remember specific times that are associated with some of the contents. There is the sweater you purchased for Dad last Father’s Day, or the music box you bought for Mom for her birthday. This goes on and on. Customers of our personal property inventory service have told us about jewelry, quilts, a candy dish, collectibles and numerous other things that would seem ordinary to someone else, but has a very special meaning to the family members.One customer, a very young couple, shared their reasons for having an inventory. They both lost their fathers at a young age, and can remember watching their mothers sort through all of the “stuff” and have no idea of the worth of most items. Many pieces were sold for next to nothing or just given away because they were mentally and physically exhausted. They couldn’t find the energy or the emotional fortitude to deal with it any more.This very wise couple promised themselves that they wouldn’t put each other through that experience. They know that since they now have an inventory, they will be able to hand off the job to someone else by simply giving them the inventory portfolio to refer to.Another customer was traveling from out of state to complete all the tasks assigned to him as the executor of his father’s estate. This took him away from his family and his job numerous times. When he was finally nearing the deadline to file the estate papers, he once again returned to his father’s house attempt the inventory. He eventually called his attorney and asked for assistance. We were referred to him and compiled the inventory for him. He was extremely grateful and stated that he just sat and stared at a blank tablet, not being able to force himself to move forward.These examples demonstrate the importance of having an inventory of your belongings so you won’t put your loved one through this experience.
Five tips for holiday conversations
I am excited to have Danielle B. Mayoras, JD, CPG as our guest today. Since our home inventory service includes this documentation for estate planning and estate settlement, I enjoy learning and also being entertained by her blog, Trial and Heirs. As we near the holidays, her insight regarding difficult conversations will most certainly be beneficial for many over the next couple weeks.
Danielle has dedicated her legal career to teaching professionals, businesses and the general public about elder law, special needs planning , and general estate planning. Danielle is a renowned attorney and Credentialed Professional Gerontologist, educating through speaking engagements, print, and broadcast media across the United States. Her speaking audiences range from nationally recognized brokerage firms, banks, and insurance companies to attorneys, accountants, and non-profit organizations. She consistently draws rave reviews from audiences and her speaking skills are in high demand. Read more about Danielle here.
Across the country in December, families will be coming together for the holidays. Sometimes the holidays are one of the few times of year that family members see each other. They eat, share stories, and laugh together. Of course, there may be a few family squabbles, but hopefully no mashed-potato flinging. Or will there be? Overall, the holidays are rare opportunities for family members to have face-to-face conversations. One critical conversation is talking about estate planning — what happens legally when a loved one passes away.
What questions will these tips help you answer?
What will happen once mom and dad pass away?
Have they done their will or trust? Is it updated?
What professionals do they work with?
Where are the documents located?
The celebrity stories in “Trial & Heirs: Famous Fortune Fights!” can help you translate the estate planning talk into a fun and entertaining discussion. Really! Here are some easy-to-use tips and conversation starters taken from the stories in Trial & Heirs.
- Bring the celebrities home for the holidays. If your family member (mom, dad, sister, aunt, grandma) is reluctant to talk about wills and trusts, begin by sharing some stories about celebrity estate planning. Start with a story about Ray Charles. He sat his entire family down (which included 12 kids from 9 different mothers!) and discussed what he planned for his estate after his passing. Encourage your loved ones to talk to each other like Ray Charles. Turn the uncomfortable topic of wills and trusts into something entertaining!
- Find out if your loved ones have done their estate planning. So now you’ve begun the conversation with your family by describing what Ray Charles did, the next question is: did your loved ones prepare a will or trust yet? Find out! Whether we’re 20 or 92 years old, no one is promised tomorrow. Share the case of Sonny Bono. He was 62 years old when he unexpectedly passed away in a skiing accident. Sonny did not have a will or a trust! His widow endured lots of complications because of Sonny’s lack of planning. So if your loved ones haven’t done their estate planning, encourage them to make sure to do so.
- Confirm that they have finished what they started. Maybe you’ve gotten through the first two hurdles, and your family members say, “don’t worry…we’ve taken care of everything”. Are they sure that they dotted their “i”s and crossed their “t”s? Share the stories of Heath Ledger who failed to update his will after his daughter was born, and Michael Jackson who caused his family unnecessary trips to the courthouse because he did not properly “fund” his trust. If your loved ones have a will or trust, has it been updated recently? Have they transferred their assets into their trust? It’s not enough to just “do” the documents, they need to be done the right way and updated with new laws and life changes.
- Verify that the attorney is a specialist. “Yes,” your loved ones respond, “we just saw our attorney and updated everything.” Okay… now we’re getting somewhere, but that doesn’t end the conversation. Does their attorney specialize in estate planning? If not, going to the attorney to update the documents may not be enough. Does the attorney use “one size fits all” forms, or customize the documents to your loved one’s needs? Share the tips on how to make sure that you have a good attorney from “Trial & Heirs” to give your family peace of mind. Also, make sure that you have the name of the attorney and other professionals in the event that your loved ones unexpectedly pass away.
- Establish the location of the documents. You’ve almost conquered the list! You’ve gotten through the first four tips, but where in the world are the documents located? Your loved ones have done their documents, updated them, and worked with a specialist, but that doesn’t do the family any good if you cannot find them! Share the story of Florence Griffith Joyner aka Flo-Jo. Her original estate planning documents were never located and as a result it cost her family a lot of time, money, grief and uncertainty. Make sure that your loved ones tell you where those critical documents are located and that the trustee or executor can access them. There’s no point in hiding the will or trust so well that no one can find them or worse, putting them in a safe deposit box that no one can get into!
Alright, the holidays are around the corner and now you’re armed with some tips on the conversation that you really need to have with your family this holiday season. Remember Trial & Heirs: Famous Fortune Fights! has these stories to start the conversation and so many more!
Don’t make them cry a sad song
I wanna goon being me once my eulogy’s been read
Don’t spread my ashes outto sea, don’t lay me down to rest
You can put my mind at ease ifyou fulfill my last request
Prop me up beside the jukebox if Idie
Lord, I wanna go to heaven but I don’t wanna go tonight
Fillmy boots up with sand, put a stiff drink in my hand
Prop me upbeside the jukebox if I die
Of all the reasons for an inventory, how many did you know?
Our recent survey shows that 95% of the responders knew that an inventory will help if you have a need to file an insurance claim. We were pleased to see this increase in knowedge, as well as with other instances, has increased from our survey from a few years ago. We trust that our newsletters, website, blogs and speaking opportunities have contributed to this increase in awareness! The statement in the survey was, “I am aware that I need/want a thorough personal property inventory of the contents of my home for the following reasons.” Following are the results:
95% – After fire, theft or natural disaster to be able to file a thorough insurance claim.
75% – Knowing I’m properly insured.
55% – Estate settlement so my children/executor won’t have to create the inventory of my belongings.
45% – Proof of a claim for uninsured losses on my income tax return.
40% – Moving or placing items in storage.
35% – Funeral or estate planning.
35% – Financial planning.
30% – Divorce.
30% – Prenuptial agreements.
And one person wrote in, “So I won’t duplicate purchases!” Of course, an inventory does help with that. Especially when you have items in a storage facility. You can check your inventory list before making the purchase. This will, indeed, prevent you from purchasing something you forgot you own.
Were you aware of all of these reasons to have an inventory of your belongings? So many times it’s just the disaster preparedness/recovery reason (95%) that is known, but this information is so helpful, if not necessary, so many other times.
No matter if you have a large mansion or a small studio apartment, it’s a document all should have. Do you have yours?
A very important part of the estate settlement process
A native of Brownsburg, Indiana, Sarah Heck, of the Law Office of Sarah Heck, has 10 years of experience helping individuals and families of all kinds with their estate planning, probate and elder care needs. The biggest reward for her is seeing the relief on her clients’ faces after they have come to see her. Sarah says, “Clients are often struggling with so many concerns, and after getting more information and talking through the issues with me, they feel so much more at peace with whatever decisions they have made. I love helping people take control of their futures like this.”
Many people who experience the death of a parent, spouse or other close relative are not prepared for the myriad of tasks involved in settling the deceased person’s affairs. If a personal representative is appointed by the court to administer the estate, state law requires that a formal inventory of the estate be prepared within two months and distributed to any beneficiary who requests it. Even when an estate does not go through probate, such as when assets are held by a revocable trust, an informal inventory of the estate usually must be prepared for inheritance or estate tax purposes.
Completing an estate inventory for probate or tax purposes can sometimes be a cumbersome process. Date-of-death values must be obtained for all financial assets such as bank accounts and investments. Any real estate must be appraised on the basis of comparable sales. Vehicles can be valued online through websites such as kbb.com or edmunds.com. Unique assets such as oil and mineral rights, private mortgages or family business interests may need to be valued by an expert appraiser with the cost potentially running into the thousands of dollars.
Tangible personal property is sometimes the most difficult type of asset to value in an estate for a number of reasons. Survivors may not recognize the value of certain items, and at the same time may over-value other items for sentimental reasons. The process of itemizing a decedent’s belongings can be extremely time-consuming. Also, the failure of a personal representative or successor trustee to properly secure the decedent’s property may mean that some items may go missing and never be valued at all.
For these reasons, having a proper, formal inventory with valuations of all of a decedent’s belongings is a very important part of the estate settlement process. Not only is such an inventory required under the probate law, it is also necessary to properly value the estate (and each beneficiary’s share) for inheritance or estate tax purposes. Moreover, having the inventory may be extremely helpful to the personal representative or trustee who is responsible for dividing the decedent’s belongings among the beneficiaries.
Start your own inventory business!
Click the logo to find out more about our Turnkey Business Package!