Congratulations! You’ve finished your will or living trust, and you’re basking in the peace of mind you’ve provided for you and your family. You pat yourself on the back, knowing that all your earthly possessions will be divided fairly and squarely amongst your loved ones, just as you wished. Life is good.
But what happens if a few years down the road you decide to leave a specific asset to a specific person that wasn’t mentioned in your estate plan? Say you want to leave your baseball card collection to your nephew, but your will says to divide your property evenly between your children. Do you need to rewrite the whole will? Or maybe add a codicil? Does the cost of those changes outweigh the benefits? Probably. But fear not, there is a free alternative. It comes with conditions – and isn’t legally binding – but it may be just the ticket for you.
It’s a document called a Personal Property Memorandum. It’s separate from your will or living trust, and in it, you can make a list of items that you want left to specific heirs. Now little Timmy can get that baseball card collection without changing your will. Sounds perfect, right?
What’s the catch?
As with all good things, there is usually a downside. With the Memorandum, the downside is that it is not legally binding in the state of Texas. This document is merely a way to state your wishes – alongside your will or living trust – for the disposition of certain items in your estate. Your executor or trustee is not obligated to recognize the Memorandum as part of your plan, but he may do so. And if you trust your fiduciary choices, this method of specifying bequests may work perfectly fine for you.
What can you leave in your memorandum?
Typically, you should only list tangible personal property in your Memorandum. For example, pieces of furniture, certain artwork or collectibles, and household items, like your grandmother’s china. When listing items, try to be as specific as possible, so your executor knows exactly what piece of property you’re referring to. When available, including brand names, model numbers, serial numbers, or similar identifiers is best practice.
And you should avoid listing real property or intangible property, such as patents, bank accounts, or stocks and bonds. Nor should you include any property in your Memorandum that is specifically listed in your will or living trust. In that case, your executor is bound to honor the will, not the Memorandum.
The fine print…
It’s important to note that for your Memorandum to have any effect at all, there must be language in your will or living trust providing the option for one. If that language isn’t included, you would need to redraft your estate plan to allow for the Memorandum option. But if your will contains such a provision, you can write a Memorandum at any time. And if you change your mind, you can tear up your current Memorandum and write a new one, at no cost whatsoever. Just sign and date a new Memorandum and keep it with your estate plan.
Another must for your Memorandum is contact information for listed beneficiaries, including phone numbers, addresses, email addresses, or other personal contact information. Without this information, your executor or trustee may struggle to honor your wishes, if they’re not familiar with your beneficiaries.
Last word of advice: if you really want a specific item to go to a specific person, put that bequest in your will or living trust – and don’t rely on a Memorandum. That’s the only legally-binding, fool-proof method of ensuring your property goes where you want it. But if you would prefer to have the option – and you choose to work with TrustBridge Legal – you will receive our Personal Property Memorandum form along with your will, trust, and ancillary documents, as part of your estate planning package.
