The value of personal belongings

[francam29]

Hello, I have a question about the value of personal belongings and their distribution amongst beneficiaries of a will. Is it usual for the probate value of personal items to be distributed amongst family members to be paid by the recipient into the Estate account prior to the distribution of the monetary shares in the Estate?

One executor of my late mother's Will thinks this is 'how it should be done', the other executor disagrees and thinks that personal belongings, which there is agreement about in terms of distribution, and which only have a notional monetary value (£100 - £200 each), should simply be shared as agreed, effectively as mementoes without 'totting up' their probate value. I agree with the second executor and feel that our parents would be horrified to think that we were effectively being asked to buy their every day possessions (clocks, books, pictures etc. some of which we actually gave them in the first place); they would have expected us to just share them sensibly and enjoy them, regardless of monetary value.

I cannot find any clear advice about this in the various guides I have looked at.

Thanks

[Peridot]

Hi Francam29,

Always difficult dealing with the personal belongings of someone. The sorts of items you appear to be talking about are known as personal chattels and form part of the estate. As they form part of the estate the value of them does need to be included in the forms that have to be completed to obtain a Grant. This doesn't mean that all items have to be sold. In fact many items will have little or no value whatsoever and can be disposed easily. Small mementos for example can be handed to family/friends as appropriate.

Is there a Will? Often there is a clause in the Will leaving a person's personal chattels to someone specifically. Irrespective of whether there is a Will or not as I mentioned above the items still form part of the estate and need to be included in the estate valuation.

It is not expected that every item should be included in the valuation, but anything worth over £500 must be itemised. It is usually sensible to get an auctioneer to the property to consider what, if any items, are of any value and could be sold. The auctioneer will give a breakdown figure which needs to be included in the forms for HMRC. Most household items have a value however, not everything could reasonably be sold. Not only the age and condition of items but also whether an item is fashionable will dictate the value that the item would be given.

Many items may be more suitable for charity shops, which is perfectly acceptable. It is justified for small memento type items to be distributed to family/friends who would wish to have them.

If there is a Will then of course an item that has been left to someone can not then be passed to someone else. However if there is no Will or the item has not been left to someone then any item(s) can theoretically be passed to that person, provided the value is included in the estate values.

If an item for example a painting, a piece of valuable furniture or jewellery is requested by one of the beneficiaries it would be reasonable for the value of the item to be deducted from any eventual distribution due to that beneficiary. Say for example someone is left a cash legacy of £1,000 but they would like to have a sideboard (that hasn't been left to someone else), then it would be reasonable, provided the other beneficiaries agree, for the sideboard to go to that person. The value of the sideboard (say £100) can then be deducted from the amount due to them so they would eventually receive £850 rather than the £1,000.

It is difficult and the executor does need to ensure they deal with the estate assets correctly, obtaining valuations and including those in the estate forms, but how they then distribute the 'amount' (cash or money's worth eg piece of furniture), due to the beneficiaries can be by way of agreement between all the beneficiaries.

The executor may have had a difficult experience in the past dealing with an estate? Maybe that is why they appear unhappy to deal with matters another way? There can be arguments about who wants what and how this is reflected in any distribution that is to be paid out, so it can be easier sometimes for the whole estate's assets to be realised and the eventual cash amount divided as needs be.

Emotions are probably running high following your mother's passing and if arguments are going to arise as to who has what, then it may be a more sensible way of dealing with things. The executor is ultimately responsible for dealing with the estate administration but if all the beneficiaries are in agreement then it may be possible to persuade the executor to deal with matters in a different way to allow certain items to be passed to individuals, whilst ensuring fairness in the division. It may be sensible for you all to contact the executor to discuss this, if you are all in agreement, then hopefully things can be sorted out ensuring the executor and the beneficiaries are comfortable with the distribution.

Basically both the methods are a reasonable way of dealing with the estate assets, but agreement needs to be reached and if there is a beneficiary unhappy with items being passed to certain beneficiaries then the executor may be left with no option. If however the situation is explained confirming that there would not be an individual who receives 'more' than would be due to them, the beneficiaries and executor may be content to deal with the estate assets in this way.