Share

Madison Wisconsin's Estate Planning Blog

Wednesday, February 10, 2021

What If No One Wants My Stuff?

A critical question to ask yourself when creating an estate plan is who will get your stuff when you pass on? While most people think about who they would like to receive the major items—homes, retirement accounts, savings—personal property such as jewelry, clothing, sports equipment, vehicles, and other possessions are often overlooked. The truth is that while some mementos and sentimental items may be very valuable to you, the people that you want to give them to at your death may not need or want them. Who, then, will get your remaining property and possessions if no one wants them?

 

How Gifts Pass Through Your Will

 

Your will contains instructions to be carried out by your personal representative for who should receive the money and property that has become part of your estate when you die. Your estate consists of real property (i.e., your house), bank accounts, personal property, and other items that may not have instructions as to who receives them upon your death. Retirement accounts, insurance policies, and other accounts have instructions called beneficiary designations or transfer- or pay-on-death designations and are not controlled by your will—unless the designations on these accounts are not properly filled out or signed by you prior to your death, in which case they become part of your estate. Your will includes specific gifts and residuary gifts of your property and money. Specific gifts are gifts of a particular piece of property (“I give my emerald ring from Grandmother Smith to my daughter Judy”) or a specific amount of money (“I give $5,000 to the American Heart Association”). You can even give away your pets in your will if allowed by state law. Residuary gifts generally mean anything else in your estate that has not specifically been given away. Essentially, everything left in your estate can be given to named individuals, charities, or entities (“I give my residuary estate to my husband, unless he dies before me, then to my son”).

 

How Gifts Pass Through Your Trust

 

Your trust also contains instructions to be carried out by your trustee for how to manage the property owned by your trust. This property can include real estate, bank accounts, and personal property during your life—when you are incapacitated (unable to make or communicate your wishes)—and after your death. Only items that are in your trust are covered by the trust instructions. Some people give their property to their trust by signing extra documents with their estate plan, and other property, such as real estate or bank accounts, can be retitled in the name of the trust at any time, thereby avoiding probate at your death. The trustee must follow the trust instructions and gift trust property as you have outlined in the trust agreement. Similar to a will, there can be specific gifts and then gifts of the rest of your trust property (“Anything remaining in my trust shall be given to my wife, but if she is not living, then to my daughters in equal shares”).

 

Memorandum Distributing Tangible Personal Property

 

Some states allow for a memorandum distributing tangible personal property in either a will or trust, referenced as “See my memorandum instructing the distribution of certain pieces of tangible personal property.” You must sign this memorandum, though it does not usually need the formalities of a will or trust signing (i.e., a sworn statement, witnesses, and a notary). The benefits of having a memorandum outside of a will and trust are the ease of adding new items, deleting items you get rid of, or changing who you would like to receive property.

 

Dividing Trust or Estate Property

 

Following the instructions of the will or trust and any memorandum, the personal representative or trustee must ensure the safe delivery of a specific gift to your beneficiary. However, the beneficiary does not have to accept the gift, they can disclaim it. Disclaim is a legal term meaning to refuse a gift. Depending on the federal or state law that applies, the beneficiary must disclaim the gift, usually within nine months if the disclaimer is also being done for tax purposes, by signing a legal document. The gift will then pass to the next beneficiary in line. Other items of property not specifically dealt with in the trust, will, or memorandum are usually divided up among the beneficiaries of the will or trust. The personal representative or trustee must supervise the process of fairly dividing up any remaining items of property, usually done by lottery or by taking turns choosing items.

 

But, what if no one wants items from your estate or trust? Some well-drafted estate plans include contingency instructions with your wishes for a beneficiary of last resort, for example, a charity. You can also instruct your personal representative or trustee to inquire among your remaining family members or friends to see if any of them would want the unwanted property. There are also other methods to get rid of the unwanted estate or trust property:

 

  • Estate sale. An estate sale is a method of hiring a company to facilitate the sale of remaining estate (or trust) property, similar to a garage sale. After the selling company’s commission, any sale proceeds are part of the estate or trust and are divided among the beneficiaries as instructed in the will or trust
  • Estate auction. An estate auction offers an alternative method of selling remaining items of an estate or trust, in which there is an auctioneer who might set a starting bid for an item but the ultimate price is set by the winning bidder. Similar to an estate sale, any sales proceeds become part of the estate or trust, minus the commission or cost of the auction.
  • Donation. If you did not name a charity in your will or trust, the beneficiaries of your will or trust can still cooperatively agree on a charity to receive the items they do not want. Any agreement deviating from your specific wishes should be documented in writing and signed by all beneficiaries. The estate usually bears the cost of delivery for all items to the agreed-upon charities.
  • Disposal. Any item not disposed of in any of the manners above can be disposed of by the executor or trustee, usually by putting them in the regular trash, arranging for trash disposal, or having a junk hauling company pick them up.

 

A complete estate plan should capture your wishes for how all of your property will be given away at your death. This includes specific gifts of property or money as well as residuary gifts of everything else that remains in your estate or trust. It may also include a memorandum that specifies who should receive certain items. Your estate plan should also include a method for dividing other items fairly among your loved ones, as well as a process for the personal representative or trustee to follow if your loved ones do not want certain items. Give your Madison Estate Planning Attorneys call today and we can discuss your options over the phone or via video conference.



Blog Categories

401(k)

AB Trust

ABLE Program

Abuse

Addiction

Adult Beneficiaries

Advancement of share

Agent

Aging

Alcohol abuse

Amendment of Trust

Annual exclusion

Annuity

Armed Service Personnel

Asset Protection

Attorney

Avoid Probate

Basis

Beneficiary

Beneficiary Designations

Birth

Business Succession

Buy-Sell Agreement

Capacity

Caregiver

Celebrity

Changes in life

Changes in tax law

Charitable Planning

Children

Cognitive Impairment

Community Property

Compensation

Conservatorship

Core Values

Corporate Trustee

Court

Creditor Protection

Creditors

Death

Debts

Decanting

Deed

Digital Estate Planning

Discretionary Trusts

Disinherit

Divorce

Divorce Protection

Documents

Driving

Drug abuse

Duress

Dynasty Trust

Dysfunctional Family

Education

Elder Law

Equal Division

Estate Planning

Executor

Fair Division

Family

Farming and Ranching

Fees

Fiduciary

Financial Power of Attorney

Flexibility

Fraud

Funding Your Trust

Funeral

Generational Planning

Gifting

Government Assistance

Grandchildren

GSST

Guardian

Guardianship

Health Care

Health Care Agent/Proxy

Health Savings Account

Heirlooms

Heirs

HIPAA

Holographic Will

House

Incapacity

Income Tax

Inheritance

Instruction

Insurance

Intent Letters

Internet

Inter-vivos Trusts

Intestacy

Inventory

IRA

Irrevocable Trusts

Joint Tenancy

Keepsakes

Kids

Law Firm

Lawsuits

Liability

Liability Insurance

Life Estate

Life Events

Life Insurance

Lifetime Planning

Lifetime QTIP

Lifetime QTIP Trust

Limited Liability Company

Living Probate

Living Trust

Living Will

LLC

Loans

Long-Term Care

Lottery Winnings

Marital Property

Marraige

Medicaid Planning

Meeting

Mental Illness

Minor Children

Money

Moving to/from a State

Myths

Newlyweds

NEWSLETTERS

Nursing Home

Oral Wills

Overseas Estate Planning

Parents

Partners

Payable on Death (POD)

Peace of Mind

Personal Property

Personal Representative

Pets

Physicians

Planning

Portibility

Power of Appointment

Power of Attorney

Predator Protection

Predators

Prenuptual Agreements

Privacy

Probate

Procrastination

Promises

Property

QTIP Trust

Remarraige

Rental Property

Restatement of Trust

Retirement Assets

Review

Revocable Trusts

Saving Money

Simultaneous Death

Special Needs Trusts

Spendthrift Tust

Spouse

Stand Alone Retirement Trust (SRT)

Storage of Documents

Storing Documents

Stress

Successor Trustee

Surgery

Tangible Personal Property Memorandum

Taxes

Testamentary Trusts

Theft

Timeshare

Title

Transfer of Assets

Transfer on Death (TOD)

Trust Administration

Trust Contest

Trust Funding

Trust Protector

Trustee

Trusts

Umbrella Insurance

Unborn Children

Unfinished Estate Plan

Update Planning

Vacation Poperty

Values

Will

Will Contests

Wishes

Year End Strategies

Young Families

Archived Posts

2021
May
April
March
February
January
2020
December
November
October
September
August
July
June
May
April
March
February
January
2019
December
November
October
September
August
July
Being Deployed? Here’s What You Need to Do
The Only Constant in Life is Change: When Circumstances Change, So Should Your Estate Plan
Beyond Wills and Trusts: 3 Documents Everyone Needs
Reconsider Outright Inheritances: How to Protect Your Heirs and Your Legacy from Bad Decisions and Outside Influences
Expand Your Cast to Prevent Chaos
Planning for Blended Families: Second or Later Marriages and Divorce of Beneficiaries
The Flexible Protection of Trust-Based Planning
Why “I Love You” Wills Really Don’t Say “I Love You”
Estate Plans for College Students and Other Young Adults: Why It’s the Perfect Time to Set Your Kids Up for Success
Your Guide to Better Incapacity Protection in Your Estate Plan
Are You Familiar With Community Property Trusts?: Learn How These Special Trusts Can Help Reduce Income Taxes
Modernizing an Outdated Estate Plan: What to do with a Confusing, Old Trust
Have You Considered a Dynasty Trust for Your Family’s Estate? Why You Should Think Twice Before Ruling One Out
What if you don’t die?: Why Ignoring the Importance of Incapacity Planning Can Have Serious Consequences
Don’t Put Off Till Tomorrow What You Can Do Today: Why It’s Time to Talk with Your Family and Your Estate Planning Attorney
Who Will Inherit Your Financial Wisdom?: Passing on More Than Just Wealth
How Tax Reform Will Impact You and Your Estate Planning
Will My Debt Outlive Me?: Your Questions About Debt After Death Answered
Planning Your Summer Vacation?: 5 Things to Consider Now
Talk to Your Family over the Holidays about Your Estate Plan
12 Crucial Insights for Protecting Your Furry Family Members
Does Your Family Know About Your Estate Plan?: A Guide for How Much to Share and With Whom
Planning for the Financial Future of a Troubled Adult Child: Your 3-Step Guide to Creating an Informed Estate Plan
Keeping the Peace After You Are Gone: Planning With an Aim Towards Building Unity
Have You Taken Advantage of the Tax Cuts and Jobs Act Planning Window?: Important Estate Planning Tips You Should Act on Now
Back-To-School Preparation: Not Just About the School Supplies- Use This Time to Revisit The Parts of Your Estate Plan That Impact Your Children Most
What Do the New 199A Regulations Mean for You?: New Choices and Opportunities for Tax Savings
Three Legal Strategies When Facing a Major Health Event: What You and Your Family Need to Know
How to Protect Your Retirement Account
2018 Midterm Elections: What Do They Mean For Your Estate Plan?: Strategic Planning Guidance in Light of the Midterm Results
Estate Planning Projects to Tackle in the New Year
Three Liability Planning Tips for Physicians You Can Use Too
June
3 Estate Planning Secrets the Wealthy Use That You Can Too!: Strategies to Enhance Your Success
Five Key Considerations for Your Estate Plan
Your Personal Property Memorandum: 4 Tips for Success
How to Coordinate Your Retirement and Estate Plans
How to Avoid a Disastrous Will or Trust Contest
Is Your Estate Plan Probate-Proof?
Want a Greater Sense of Purpose? Plan Your Legacy
What is Asset Protection and Do I Need It?
Caution: Your Traditional Asset Protection Plan Is Set Up to Fail
Your Vacation Checklist
Estate Plans for College Students and Other Young Adults: Why It’s the Perfect Time to Set Your Kids Up for Success
Does Your Estate Plan Protect Your Adult Beneficiaries?
Discretionary Trusts – How to Protect Your Beneficiaries from Bad Decisions and Outside Influences
Estate Planning Is Not Just About Money
Is Your Estate Plan Unfinished? Don’t Wait to Complete This Important Process!
When Equal Is Not Necessarily Fair
Lifetime QTIP Trusts – The Gift That Keeps Giving
One Year After the Historic 2016 Election: Strategic Estate Planning in Uncertain Times
Funding Your Revocable Living Trust to Avoid Probate
4 Tips for Avoiding a Will or Trust Contest
The Harmonious Family that Won't Fight
3 Asset Protection Tips You Can Use Now
Estate Planning for Rental Property Owners
Estate Planning is More Than Just Death Planning
The Trust Protection Myth: Your Revocable Trust Protects Against Lawsuits
Loan, Gift, or Advancement: Why the Classification Matters
What to Bring to Your First Meeting with the Estate Planning Attorney
April
March
February
January
2018
September
August
July
Not Married? You’re not alone - but you still need a plan. Estate Planning for People Living Together, Bachelors, and Bachelorettes
Are Your Documents Following the Same Script? Basics of Beneficiary Forms and Estate Planning
A Trust for Fluffy or Fido? Why Every Pet Parent Needs to Consider a Pet Trust Today
Roth IRA Conversions After Tax Reform...Still a good idea? What are the implications for your family if you don’t spend all the money?
Estate Planning When Not All of Your Kids are in the Family Business
Beneficiary Designations and a Blended Family: Why You Need to Think Before You Sign
The One Thing Every New Grandparent MUST Do As Soon as Possible
How to Fix 5 Common Estate Planning Problems
How to Leave Your Life Insurance and Retirement Plan to Your Minor Children
Financial Planning. Tax Planning. Legacy Planning. Estate Planning - How many plans do I need?!
Why Not Just Go on NoloⓇ and Create Your Own Estate Planning Documents Cheaply?
3 Things You Must Do Once Your Divorce Is Final
Protecting Your Children’s Inheritance When You are Divorced
Finding the Right Fit: Questions For Prospective Wills and Trusts Attorneys
The Biggest Threat to Successful Estate Planning
Steps For Starting the End-of-Life Conversation
Joint Tenancy Pitfalls: The ‘Simple’ Fix that Can Leave Your Family Broke
One Call You Must Make After You Buy a Home-That You’ve Probably Forgotten
3 Tips For Every New Homeowner
Declare your Independence from Court Interference!
What To Do With Your Beloved Collection
Legal Considerations When Getting Your New College Student Ready to Go
Digital Afterlife- An Estate Plan For Your Facebook Account
How an Estate Planning Letter of Intent Can Help Your Family
Kids and Investors Are Not the Only Options
Retirement Planning for Business Owners
Passing Along a Benefit, Not a Burden - Why Incapacity Planning for Business Owners is an Indispensable Component of Your Plan
March
February
2017
September
August
July
May
April
Updating Your Revocable Trust: How Many “Tweaks” Are Too Many?
U.S. Supreme Court Rules Inherited IRAs are Not Protected from Creditors
4 Tips for Avoiding a Will or Trust Contest
Three Liability Planning Tips for Physicians Anyone Can Use
Three Estate Planning Mistakes Farmers and Ranchers Make and How to Avoid Them
The Wrong Successor Trustee Can Derail Your Final Wishes
The Trust Protection Myth: Your Revocable Trust Protects Against Lawsuits
The Tragic Loss of Star Trek’s Anton Yelchin: Lessons for Estate and Legacy Planning
The Three-Year Review and The Three-Year Plan
The Shocking Truth About Asset Protection Planning
The Pros and Cons of Probate
The Perils of Promises...Marlon Brando’s Story
The Lifetime QTIP Trust: Or (How to Maintain Control of Your Estate and Keep Spouse No. 2 Happy)
The Lifetime QTIP Trust: Or (How to Maintain Control of Your Estate and Keep Spouse No. 2 Happy)
The IRS Took Half of Tony Soprano’s Estate: Don’t Fall into the Same Trap!
The Essential Legal Documents You Need for Incapacity Planning
Surprise! You Can’t Easily Disinherit Your Spouse in the U.S.
Stress Test Your Estate Plan
Sonny Bono’s Procrastination in Creating a Will Led to Years of Estate Battles
Skyrocketing Probate Fees – Another Reason to Avoid Probate Court
Revocable Trust vs. Irrevocable Trust: Which Is Best for You?
Prince’s Sad and Incredibly Expensive Mistake! (Are You Making It, Too?)
3 Powers to Consider Giving to a Trust Protector
Philip Seymour Hoffman’s Will: 3 Critical Mistakes
Parental Warning: If You Own Your Property this Way, You May Accidentally Disinherit Your Own Children
Over 70% of Elvis Presley’s Estate Paid in Taxes & Fees: How Can You Avoid the Same Trap?
Nosey Neighbor Nellie Can Find Out About Your Probate. Really.
Michael Jackson’s Estate Pulled into Seemingly Endless Probate Court Battles
Lifetime QTIP Trusts – The Gift That Keeps Giving
Is Your Estate Plan as Stale as Last Week’s Ham Sandwich? 5 Reasons to Update Your Estate Plan
March
Is a Revocable Living Trust Right for You?
Is a Payable on Death Account Right for You and Your Family?
Irrevocable Trust Decanting in 4 Steps
IRS Announcement: Estate Tax Closing Letters Will Now Only Be Issued Upon Request
Investment, Insurance, Annuity, and Retirement Planning Considerations
If You Die Without a Will, Does Your Spouse Inherit Your Entire Estate?
How to Pick a Trustee, Executor, and Agent Under a Power of Attorney
How to Minimize the (Voluntary) Federal Estate Tax with Portability
How to Minimize Legal Fees After Death
HELP! This Probate Is Taking Forever!!!
Four Steps to Stop Mail Addressed to a Deceased Person
Five Things You Need to Know About the Recently ABLE Act
Flo Jo’s Tragic Mistake: A Missing Will
5 Reasons Why Uncle Bill May Not Make a Good Trustee
Financial Firms Roll Out Form Aimed at Stopping Financial Elder Abuse
5 Reasons to Embrace Estate Planning
Estate Planning: 3 Reasons We Run the Other Way
Estate Planning Basics for Newlyweds – How to Get Prepared for the Unexpected
Escape From a Bad Trust: 5 Strong Reasons to Decant Your Trust
Doris Duke’s Trustee Bilked Estate for $1M: How Well Do You Know Yours?
Don’t Leave Your Trust Unguarded: 6 Key Ways a Trust Protector Can Help You
Does Your Estate Plan Protect Your Adult Beneficiaries?
Who’s Going to Get It: Do You Really Know the Beneficiaries of Your Dynasty Trust?
Dispelling the Top 3 Estate Planning Myths
Discretionary Trusts – How to Protect Your Beneficiaries From Bad Decisions and Outside Influences
Did you include your grandkids in your will? 5 Tips to Avoid Common Problems
Did Whitney Houston Leave Too Much Money To Bobbi Kristina?
Dennis Hopper Saves Heirs with Last Minute Estate Plan Changes
Decanting: How to Fix a Trust That Isn’t Getting Better With Age
Avoiding Guardianship When you are Incapacitated
Decanting: How to Fix a Trust That Isn’t Getting Better With Age
Who Should I Choose as a Successor Trustee
Celebrities Who Failed To Recognize Unborn Children in Their Wills: A Teachable Lesson
February
Caution: Your Traditional Asset Protection Plan is Set Up to Fail
How to Choose a Trustee
Name a Guardian for Your Child
Caution: Creditors Now Have Easy Access to Inherited IRAs
Big Bang Theory Star’s “Ironclad” Prenup Challenged: How Does Yours Compare?
Will Your Family Be Able to Find Your Original Last Will?
Ways to Avoid Court Proceedings
Are Handwritten Intentions Enforceable? Princess Diana Thought So…
An Estate Planning Checklist to Facilitate Wealth Transfer
Aging.gov: A New Resource for Older Americans and Their Families
AB Trusts – Do You Need to Get Rid of Yours?
A Powerful Exercise to Surface the Values You Want to Pass on to the Next Generation
10 Types of Trusts: A Quick Look
5 Tragic Mistakes People Make When Leaving Assets to Their Pets
5 Things Every New Mother Needs to Know About Wills
New Legislation Could Mean the End of Estate and GSTT Taxes What This Means for You and Your Family
5 Reasons to Protect Your Retirement Accounts Now
5 Mistakes Made by Successor Trustees (and How to Prevent Them)
5 Good Reasons to Decant a Trust
3 Ways to Minimize Estate Planning Fees
3 Tips for Overwhelmed Executors
3 Simple Ways to Avoid Probate Costs
3 Reasons You Want to Avoid Probate
Who Needs an Estate Plan?
AB Trusts – Do You Need to Get Rid of Yours?
How to Pick a Trustee, Executor, and Agent Under a Power of Attorney
Better to Play it Safe: Proactive Estate Planning and Cognitive Impairment
Will Your Revocable Living Trust Avoid Probate? It Depends.
Why Your Estate Planning Project Must Morph into a Process
Estate Planning Tips for Commitment Without Marraige
3 Celebrity Probate Disasters and Tragic Lessons
3 Examples of When an Irrevocable Trust Can – and Should – Be Modified
January
2016
December
November
October
September
August
July
June
May
April
March
February
January
2015
December
November
October
September
August
July
June
May
April
March
February
January
2014
2013
2012


Nennig Law Offices, LLC assists clients in Madison, WI and throughout Southern Wisconsin including Verona, Middleton, Sun Prairie, Cross Plains,Sauk City, Belleville, Waunakee, Mount Horeb, Oregon, Black Earth, DeForest,Monona, McFarland, Stoughton, Cambridge, Deerfield and Fitchburg.



© 2021 Nennig Law Offices, LLC
6418 Normandy Ln, Ste 225, Madison, WI 53719
| Phone: 608-661-4333

Estate Planning | Asset Protection | Business Succession Planning | Special Needs Planning | Planning for Children | Advanced Estate Planning | Probate & Estate Administration | Estate Planning for High Net Worth Individuals | Estate Planning with Wills | Trusts & Estate Planning | Estate Planning for Non-Traditional Families | Estate Tax Planning | Estate Litigation | Guardianships | Pet Trusts | COVD-19 | Who We Are | Becoming A Client

Attorney Website Design By
Zola Creative