Why Specific Bequests of Personal Property Are Problematic

When people think about creating a will, they often want to leave meaningful personal items — such as jewelry, artwork, collectibles or family heirlooms — to specified loved ones. While the intention is benign, making detailed personal-property bequests directly can actually make the probate of the will harder, slower and more expensive. Fortunately, there is a better alternative.

Below is a breakdown of some of the problems with specific bequests:

• People’s property changes constantly — A will’s list of specific bequests can become outdated quickly. Every time you want to update the list, you must formally amend your will. During probate, if a listed item no longer exists, the personal representative must determine whether the gift has adeemed (i.e., failed) and whether the beneficiary is entitled to something else. 
• Property descriptions can be ambiguous — Even with the best intentions, people often describe items in ways that are unclear or open to interpretation. For example, “My grandmother’s ring” or “my record collection.” Over time, items get moved, replaced, or altered. A description that made sense years ago may no longer be accurate. Ambiguity is one of the most common sources of estate conflict.
• Specific bequests can reduce other beneficiaries’ shares — If a will gives high-value items to certain beneficiaries, the remaining heirs may receive less than the testator intended. This can put pressure on the personal representative to equalize distributions, which may require selling other assets to balance the estate. 
• Increased administrative burden and cost — Every specific bequest adds work for the personal representative, including locating and securing the item, determining whether the description matches the actual property, documenting the transfer for probate and possibly dealing with disputes among beneficiaries. All of this can slow down the probate process.

Using a separate list to distribute personal property

Arizona law provides a better solution. A statute, A.R.S. § 14-2513, allows you to direct the distribution of tangible personal property in a separate document that is referenced in your will. The document must be signed by you and must describe the items and recipients with reasonable certainty.

The separate document can cover most tangible personal property, such as jewelry, artwork, furniture, collectibles, tools and household items. However, it cannot be used for real estate or for money, including bank accounts or other financial assets.

The chief advantage of using a separate document is that you can update it continually as your property changes, thus avoiding having to amend your will. It also removes ambiguity and potential for disputes among beneficiaries. All of these benefits can help reduce delays during probate.

Jeffrey P. Hall, PLLC of Chandler and Peoria, Arizona can help you create a clear, effective estate planning strategy tailored to your needs. To arrange for a free initial consultation, call 480-409-5174 or contact us online.