TANGIBLE PERSONAL PROPERTY

WHO GETS MY STUFF?

“​Tangible personal property” is the legal term for what we commonly refer to as our personal possessions or “stuff.”

Examples of tangible personal property include:

• art
• antiques
• boats
• books
• camping equipment
• china
• clothing
• collectibles
• computers
• electronics
• firearms*
• furniture
• household furnishings
• hunting and fishing equipment
• jewelry
• lawn and garden equipment
• linens
• personal items
• photographs
• recreational vehicles
• sports equipment
• tools
• and other similar items.

Tangible personal property does not include money.

The word “tangible” refers to personal property that is touchable or physical as opposed to “intangible” assets such as shares in a business or stock evidencing only by a stock certificate.

The word “personal” delineates the property from real property which is real estate or land.

*Note regarding firearms: NFA items can cause special concern in estate administration. More information about NFA items will be included in a future blog post.

Why is it called tangible personal property?

The word “tangible” refers to personal property that is touchable or physical as opposed to “intangible” assets such as an interest in a partnership or shares of stock.

The word “personal” delineates the property from real property which is real estate or land.

I WANT TO LEAVE MY WEDDING RING TO MY DAUGHTER.

You may have heard how other people have dealt with gifts of tangible personal property at death. I know I have heard quite a few stories - some with good endings, some not so good. It is not surprising that the division of tangible personal property at death can cause hurt feelings and family disputes.

Being treated unfairly upon the distribution of a loved one’s belongings can be very painful. To avoid this, some clients go so far as to direct a trustee or personal representative to  “JUST SELL IT ALL!!!”

​Michigan law does provide a solution, and it does not include the ever popular “sticky notes” attached to the bottom of your heirloom furniture!

​You have the right under the law to create a list that specifies gifts of certain items of tangible personal property. The list can be changed from time to time. Only the most recently dated gift of an item will be valid.

So, to leave my wedding ring to my daughter, Michigan law provides that I can leave a handwritten note (or if not handwritten by me, then a note signed by me at the end) that states that I want my daughter to receive my wedding ring.

PLEASE NOTE: the list MUST be referred to in YOUR WILL for this to hold up in court. If you don’t have a will, or if your will does not contain a provision referring to a possible statement or separate list of gifts of tangible personal property, this will not work.

Here are some suggestions:

1. Find your Will, more formally known as your Last Will & Testament. If you don’t have a will, please call me, I would be happy to help you!
2. If you have a will, look through the terms of the will. You are looking for the part of the will that sets forth who will receive your tangible personal property.
3. You are looking for some language that specifically refers to a separate list of gifts of tangible personal property. (If you have trouble reading your will, let me know - I am known for translating legalese into wording that is easier to read, and I may be able to help you!). 
4. As long as the will refers to the separate list of gifts of tangible personal property, you are good to go! You can make your list, in your own handwriting and/or signed (and preferably dated) at the end by you. The list will be legally enforceable.
5. If your will does not contain such a provision, you may want to update your will.

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Let me know if I can help

I have over 30 years experience preparing wills and trusts and I would be happy to help you! Hiring an attorney to prepare your estate plan provides you with trusted legal advice. A will is not just a simple form you can buy online. Be sure your estate plan is done right. 
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CALL JO ANNE