We want to provide our clients with some helpful reminders and tips to keep in mind when dividing an estate. It is sometimes helpful for people to hear advice and suggestions from different contributors because one person's explanation might make more sense to you than another's. Below we have compiled several tips from different sources and we will continue to update this page as we find more useful sources.
Angie Epting Morris, the author of THE SETTLEMENT GAME: How to Settle an Estate Peacefully and Fairly has compiled a list of three main rules that will lead to the most peaceful estate division. For an extensive description of the logistical as well as the emotional components of the process, we recommend that you read Morris' book! For now, we will show you the three rules she presents.
"Rule # 1 - Only immediate heirs should be involved in the division process during the settlement of the estate. All others (spouses, children, grandchildren, in-laws and friends) should NOT participate, especially at the start of this process."
"Rule # 2 – Don’t remove anything from the home or property before the official division process. Common sense may require that valuables be removed for safe-keeping; just make sure that all heirs are aware and agree."
"Rule # 3 – Try to gain an understanding of personality types of the other heirs involved. It is important to understand the basic traits of each person involved, and the best way in which to communicate with that personality style. By doing this, many conflicts that would otherwise develop from misunderstandings among heirs can be avoided."
Source: http://connect.legacy.com/inspire/how-to-settle-an-estate
MyStateWill.com has also compiled several useful tips for estate division and we will share a few with you below!
"Division Among Multiple Heirs
Certain forms of personal property may be physically divided, but most cannot. (For instance, it is impossible to physically divide a piano with destroying it.) Even personal property that can be divided will frequently decrease in value as a result. For instance, two heirs may agree to share the stamp collection by choosing individual stamps that have a combined value of $250 for each heir. However, the collection's fair market value of $500 may have been based entirely upon the collection's value as a single unit. Of course, in these situations the heirs are more interested in owing the actual property than in receiving its worth and will not be concerned with the reduced value.
This inability to divide most items of tangible personal property makes three options available to multiple heirs who wish to own the same item. When this occurs the heirs must agree to own that item jointly, agree that just one of them will own it, or sell the item so that its value can be divided.
Selection of Personal Property
It is also possible for the heirs to elect to take items of tangible personal property rather than cash. When an item of tangible personal property is taken, it is considered a portion of that heir's share of the intestate estate and its cash value will be subtracted from the total amount of that heir's share.
For example, suppose there are three heirs of the $150,000 estate, with each individual heir being entitled to a $50,000 share. If one of these heirs elects to receive the stamp collection as part of his or her share, the collection's $500 value will simply be applied to that heir's $50,000 share. In addition to the $500 stamp collection, this heir will take a cash payment of $49,500 from the estate in order to receive the full $50,000 share.
Although any heir may request a specific item of personal property as part of his or her share, every heir is equally entitled to receive each individual item from the intestate estate. These equal rights may cause difficulty when more than one heir wishes to take the same item."
Source: http://www.mystatewill.com/info_files/personal_prop_division.htm
Angie Epting Morris, the author of THE SETTLEMENT GAME: How to Settle an Estate Peacefully and Fairly has compiled a list of three main rules that will lead to the most peaceful estate division. For an extensive description of the logistical as well as the emotional components of the process, we recommend that you read Morris' book! For now, we will show you the three rules she presents.
"Rule # 1 - Only immediate heirs should be involved in the division process during the settlement of the estate. All others (spouses, children, grandchildren, in-laws and friends) should NOT participate, especially at the start of this process."
"Rule # 2 – Don’t remove anything from the home or property before the official division process. Common sense may require that valuables be removed for safe-keeping; just make sure that all heirs are aware and agree."
"Rule # 3 – Try to gain an understanding of personality types of the other heirs involved. It is important to understand the basic traits of each person involved, and the best way in which to communicate with that personality style. By doing this, many conflicts that would otherwise develop from misunderstandings among heirs can be avoided."
Source: http://connect.legacy.com/inspire/how-to-settle-an-estate
MyStateWill.com has also compiled several useful tips for estate division and we will share a few with you below!
"Division Among Multiple Heirs
Certain forms of personal property may be physically divided, but most cannot. (For instance, it is impossible to physically divide a piano with destroying it.) Even personal property that can be divided will frequently decrease in value as a result. For instance, two heirs may agree to share the stamp collection by choosing individual stamps that have a combined value of $250 for each heir. However, the collection's fair market value of $500 may have been based entirely upon the collection's value as a single unit. Of course, in these situations the heirs are more interested in owing the actual property than in receiving its worth and will not be concerned with the reduced value.
This inability to divide most items of tangible personal property makes three options available to multiple heirs who wish to own the same item. When this occurs the heirs must agree to own that item jointly, agree that just one of them will own it, or sell the item so that its value can be divided.
Selection of Personal Property
It is also possible for the heirs to elect to take items of tangible personal property rather than cash. When an item of tangible personal property is taken, it is considered a portion of that heir's share of the intestate estate and its cash value will be subtracted from the total amount of that heir's share.
For example, suppose there are three heirs of the $150,000 estate, with each individual heir being entitled to a $50,000 share. If one of these heirs elects to receive the stamp collection as part of his or her share, the collection's $500 value will simply be applied to that heir's $50,000 share. In addition to the $500 stamp collection, this heir will take a cash payment of $49,500 from the estate in order to receive the full $50,000 share.
Although any heir may request a specific item of personal property as part of his or her share, every heir is equally entitled to receive each individual item from the intestate estate. These equal rights may cause difficulty when more than one heir wishes to take the same item."
Source: http://www.mystatewill.com/info_files/personal_prop_division.htm