Like many people, your focus on the legacy you leave behind after death may fall on larger assets, like property and financial accounts. Wills and trusts are exceptional legal documents for expressing your wishes regarding asset distribution. However, disregarding the distribution of your personal effects may leave family members with the emotional challenge of deciding who gets what.
Arguments and hard feelings among relatives are not uncommon when deciding how to divide a loved one’s sentimental possessions. Creating a personal property memorandum as part of estate planning in Chicago can work to alleviate the challenges of dividing overlooked, tangible assets.
What Is a Property Memorandum?
A property memorandum lets you create a list of personal items and designate who should receive each one. Examples of tangible assets a property memo in Chicago may include are:
- Family heirlooms
- Physical gold and other metals
- Jewelry, such as wedding or college rings
- China or cookware collections
- Art
- Furniture
- Family photos or videos
These tools provides the avenue to leave personal belongings with sentimental significance to someone you want to have them. The individual may also share a common nostalgia for something you own.
Can I Create a Property Memorandum Only For The Distribution of Assets in Chicago?
Property Memorandums are not standalone documents. You create this document in conjunction with a will or trust. These documents must cite the memorandum as a document to use in tandem with the will or trust you create. A property memorandum is a more straightforward way to distribute belongings with emotional significance.
What Are the Limitations?
Failing to reference a property memorandum in a will or trust appropriately may raise questions about whether the document is legally binding. The memorandum needs your signature and a date. A Chicago estate planning attorney can guide you in creating a practical property memorandum.
These tools do not work for all assets. Banking accounts, retirement savings, property, automobiles, or assets with titles require a will or trust. Creating a plan for the distribution of all your assets may minimize disagreements and confusion and support a more efficient probate process in Illinois.
Wills and trusts address larger assets and allow you to express your wishes about asset distribution. However, a property memorandum provides the avenue to be more specific in your final desires about the things you enjoy or love.
Do I Need One in My Estate Plan?
In addition to being a document that specifies the distribution of your personal effects and its ability to reduce conflict among family members, a property memorandum provides more flexibility in asset distribution. It is easier to update the recipients of a tangible asset in a property memorandum.
A will or trust requires formal implementation to change, which can increase costs. A will is valid only if it meets the requirements of the Illinois Probate Act. Because it is more challenging to change a will or trust, people often allow updates to go by the wayside, meaning a will or trust may not truly reflect your final wishes.
Instead of stating you wish to leave your jewelry or sports collection to your children in a will, you can be more specific in a property memorandum. For example, you may express that you wish to leave an anniversary ring to a daughter-in-law while leaving your wedding band and engagement ring to a daughter. You can single out items in a sports collection for specific people, letting them know your wishes for them to receive a particular item.
How Can an Estate Planning Attorney Help Me With a Property Memorandum?
You may still have assets you do not specifically identify in a will, trust, or property memorandum. A Chicago estate planning lawyer will work with you to create instructions for addressing other assets your loved ones must handle after your death or during probate.
In some cases, a beneficiary in your property memorandum may predecease you. We offer guidance on these and other unexpected life events. Estate planning attorneys work with you to honor your wishes and create documents that make your estate planning a streamlined and inclusive process.
How Often Can I Change a Chicago Property Memorandum?
Because they are easier to modify, you may update a property memorandum as many times as necessary. Schedule a recurring review of your estate plan to review a will or trust. This review allows you to make necessary changes and keep all documents up-to-date. The complexity of your estate will determine how often a review is required.
Initially, a recommended estate plan review schedule is every 3 to 5 years. Reaching a more mature age, acquiring more assets, experiencing significant changes in your core family structure, or major health incidents are indicators that more frequent reviews of your estate plan may be necessary.
Life can change suddenly, leaving no time to address or create an estate plan and property memorandum. Contact a Chicago estate planning attorney at Plan Forward Legal to ensure the accuracy of your estate planning documents, draft a property memorandum, and develop a plan that benefits your loved ones.
