Tangible Personal Property — Often a problem

The following excerpts are from Splitting Heirs, Trusts & Estates Newsletter (Heritage Auction Galleries), Sept./Oct. 2008, at 5:

A common issue confronting estate settlement professionals relates to valuable tangible assets.  Most of the thousands of wills that I have reviewed include language giving the fiduciary a great deal of latitude as to the ultimate disposition of the items.  If you are an attorney or corporate fiduciary, this area of responsibility is a mine field. * * *

A common issue involves dispositive terms that divide the residue of the estate by share or percentage.  You can’t equitably divide a sculpture, vintage sports card or rare coin. * * *

If the document provides the fiduciary with the authority to either sell or divide the assets, check with the beneficiaries regarding their preferences.  Many of no interest in tangible assets and would not object to your seeking the best possible opportunity to convert them to cash.  Occasionally a beneficiary will be a collector or have a sentimental attachment to one or more objects.

The article continues by explaining how it is possible for an auction of the items to be fair to both sides.  The auction should get the highest price making the “money” beneficiary happy and gives the “item” beneficiary the ability to purchase the item.