In life, we call it stuff. In law we call it, “Tangible Personal Property”. And either way, there exists a process for how it is dealt with when you die. Here comes the kicker…you can largely control what happens to your “stuff” without ever having to set foot in an attorney’s office OR make a will. Read on for that exciting tidbit below. 

What is considered “stuff” or tangible personal property? 

Generally speaking, we define “stuff” by exclusion. I.E. it’s not your house, stocks, retirement, bank accounts, or cash. It’s so typical of law to know what something isn’t, but not clearly articulate what it is. Anyhoo, cars, pets, jewelry, art work, furniture, collections, dishes, clothes, textiles, etc. are usually what we are talking about when it comes to “stuff”. 

Often, these things are more precious than any of the other assets. I had a client once whose biggest concern was ensuring that the cherished family Christmas Village was divided fairly among her children. 

A lot of history, memory and sentimentality comes with our stuff. 

Of course a lot of stuff is just stuff, and it needs to be dealt with upon death. 

So what is the process for handling stuff after we die? 

In Utah (and most other states), you are authorized to create what is called a “personal property memorandum”, which is basically just a list. On this list, you can say who you want to get which item, and then describe it for clarity. If you sign and date that list (no notarization required), you have just made an executed document that will be followed upon your death. 

Should you later change your mind about an item on your list, you can list it anew. The most recently dated and signed list will control. 

Of course, no one is going to list everything that they have, nor should you, the Personal Property Memorandum should be reserved for items that you want someone specific to have. Beyond that, generally what occurs is that the heirs of the estate share the unassigned stuff between them, anything unwanted is either sold or donated. 

How is the remaining stuff “fairly” divided? 

There are several systems used. I will discuss 4:

• Appraised value 
• Lottery 
• Sticky notes 
• Round robin. 

Appraised Value: Some folks want all items to be appraised, each labeled with its amount, and a sum total given for all items. Then people can only claim their sum portion of the appraised items. For this option you might need to determine an order for picking, and a system for settling cases when multiple people want the same item. 

*Of Note- Getting an appraisal of this extent and specificity done is costly. 

Lottery: In a lottery system, each person's name is placed in a container, and then one name is drawn randomly. The person whose name is drawn receives the first choice of property, and then the process is repeated until all of the assets have been distributed.

This method can be used to ensure that everyone has an equal chance of receiving valuable items, and it can also help avoid disputes over who should receive which assets. However, it may not always be the most efficient or effective way to divide property, especially if some items have significantly more value or sentimental importance.

Sticky Notes: I’ve also had clients use a system where each beneficiary is given a fixed number of sticky notes. This way they are limited on the number of items and must prioritize. Again, in this system, if more than one person puts a sticky note on a given item, an agreement will have to be reached. Sometimes these cases resolve due to the limited number of sticky notes, as the individual may decide that they prefer another item instead.

Round Robin: In a round robin system, each person is assigned a turn. Individuals then choose one item of property during their turn. Once each person has made their first choice, the process is repeated in the same order until all the assets have been distributed.

This method can be effective in ensuring that everyone receives an equal share of property, and it may also be helpful in preventing disputes over who should receive which assets. However, it also may not be the best approach if some items are significantly more valuable or have sentimental importance to particular individuals.

In terms of settling who should receive an item that multiple people want, I’ve seen “buying the others out”, rolling dice, and general negotiation used. 

In a well drafted will, there is usually some override power given to the personal representative for settling disputes that the parties involved cannot settle amongst themselves.

‍Conclusion

There are no guarantees that everyone will agree or feel good about the division of tangible personal property. However, I have found that the more explicit a person is with their wishes, the more accepting the heirs are, even if it doesn’t make them happy. Just knowing what a person wanted can provide a great deal of peace for those left to work through the details.

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