One of the greatest gifts you can give your family is the gift of not making them have to decide what to do with all your “stuff” when you pass away. While it would be trite to say each situation, and each thing you own, is unique, here are a few tips for dealing with this issue:
- There may be things you own that someone in your family would find especially important to inherit. Have you ever asked your kids and grandkids what that might be? This usually has nothing to do with the item’s value, so don’t think about having to divide up these items “equally.” If there are things you want to leave to particular people at death, make a list, sign it, and keep it in a safe place (like your lawyer’s office). If you want it to be legally binding, refer to the list in your Will.
- Even better, give it away now. Do you still really need that item of jewelry, piece of china, tool, or other thing that your child or grandchild might really cherish? Give it to them now, so they can thank you in person.
- Speaking of giving, the people I talk to continue to be obsessed with the false notion that they will owe a gift tax if they give anyone more than a particular amount (which is now $17,000, by the way) in a year. Unless you plan on giving away more than the federal estate tax threshold (now over $12 Million each) during your lifetime, there is no limit to the amounts you can give now. So why wait to give each grandchild that small (or large) bequest through your Will? Give it to them now. You’ll actually get to see the smiles.
- Your car is an ideal thing to give away before you die, especially if you’re not driving anymore, if you still own it at death, there will need to be a probate filing to give someone the ability to transfer the title after you die.
- Another source of inadvertent and otherwise unnecessary probates is the ownership of U.S. Savings Bonds. Old ones that have matured and on which interest is no longer accruing are really the worst. Either name someone as a death beneficiary on the bonds or own them in joint name or cash them in today. And, if you want, give people the money now that they were going to get from the sale of the bonds after you die.
- Talk to your estate planning lawyer if you have questions about any of this. It may save your children thousands of dollars in unnecessary legal fees after you die.
If you want to learn more about these issues, you can watch this month’s episode of Elder Law 101. You can find it on MVTV (Comcast 13) or visit Frank and Mary’s YouTube channel, youtube.com/elderlawfrankandmary. If you have any questions, please contact me at 508-860-1470 or abergeron@mirickoconnell.com.
Arthur P. Bergeron is an elder law attorney in the trusts and estates group at Mirick O’Connell.
