Latest / Talking FACS / Transferring Cherished Possessions: Estate Planning for Non-Titled Property

Transcript

Transferring Cherished Possessions: Estate Planning for Non-Titled Property · Talking FACS

• 0:01
  Welcome to Talking Facts.
• 0:03
  What you need to know about family food finance and fitness.
• 0:07
  This nationally recognized award winning podcast is hosted by the University of Kentucky Family and Consumer Sciences Extension Program.
• 0:16
  Our educators share research knowledge with individuals,
• 0:19
  families and communities to improve quality of life.
• 0:24
  Hello and welcome to Talking Facts.
• 0:26
  What you need to know about family food finance and fitness.
• 0:29
  I am your host,
• 0:30
  Mindy mccauley,
• 0:31
  Family and Consumer Sciences Extension Specialist for instructional support at the University of Kentucky.
• 0:37
  My guest today is Dr Nicole Huff,
• 0:39
  assistant extension professor for Family finance and resource management.
• 0:44
  Our topic today is transferring cherished possessions,
• 0:48
  estate planning tips for non tiled property.
• 0:52
  Boy,
• 0:52
  that's a mouthful Nicole.
• 0:54
  It is a mouthful.
• 0:55
  It matches the task because it's a tough task,
• 0:57
  but we're gonna talk about it is a tough task.
• 0:59
  We're so glad that you're here though,
• 1:01
  to talk to us about this tough task because that is one of those challenges that,
• 1:06
  that we have to face in life.
• 1:08
  And I'm glad that I have a good friend to talk to me about how to do this.
• 1:13
  As we mentioned,
• 1:14
  estate planning can be a complicated process,
• 1:17
  especially when considering how to transfer personal property to people who will want and care for it.
• 1:23
  After your death,
• 1:25
  the task of sorting through a lifetime of belongings can be overwhelming.
• 1:29
  So what advice can you offer to someone wanting to begin transferring their cherished positions?
• 1:35
  Yeah.
• 1:35
  And as we mentioned,
• 1:36
  this can be a very,
• 1:38
  a hard process both emotionally and then that,
• 1:41
  you know,
• 1:42
  if we've amassed lifetime of belongings and when we begin to go through that,
• 1:47
  it can be um an overwhelming process in so many ways.
• 1:51
  And you know,
• 1:51
  so it is really natural,
• 1:53
  we want to put it off.
• 1:54
  And so,
• 1:54
  so what I hope is that this conversation can,
• 1:57
  can do just that begin the conversation so that it can be less overwhelming.
• 2:02
  And so,
• 2:03
  um you know,
• 2:03
  that you can just simplify and streamline.
• 2:06
  So one of the first things,
• 2:07
  if you want to begin thinking about your non titled property,
• 2:12
  and let's kind of just break that down first.
• 2:14
  So,
• 2:14
  you know,
• 2:15
  we may have a will in place for our titled property.
• 2:18
  So those things like our home and our property,
• 2:20
  um our insurance policies,
• 2:22
  our beneficiaries,
• 2:23
  those are all um titled property that we have,
• 2:26
  you know,
• 2:27
  we can transfer the ownership of those two,
• 2:29
  but that is only a small part of our estate.
• 2:32
  And so we also want to create a plan for our non title property for those cherished possessions,
• 2:39
  right?
• 2:40
  And so you know,
• 2:41
  um the legal considerations is,
• 2:43
  is one of those the first way.
• 2:45
  So if you're wanting to begin,
• 2:47
  begin thinking about the legal considerations,
• 2:49
  because creating a plan for all of your,
• 2:52
  your possessions is important from a legal standpoint.
• 2:55
  And so,
• 2:55
  you know,
• 2:56
  if you have begun giving some thought to this,
• 2:58
  you may have started labeling items around your house.
• 3:01
  You might have put sticky notes on it or told a grandchild this can be yours one day.
• 3:07
  And so you know,
• 3:08
  those methods may help you begin to think through this process,
• 3:11
  but they're not legally binding.
• 3:13
  And so,
• 3:14
  you know,
• 3:14
  if you,
• 3:15
  if you haven't started estate planning,
• 3:19
  whether for your titled or non tiled property,
• 3:21
  the first thing I can tell you to do is to talk with a trusted attorney or an estate planner and begin to get your wish,
• 3:28
  just document it.
• 3:30
  So so that can understand that that complicated process so that you can understand what constitutes a legal will in Kentucky,
• 3:39
  how to manage your estate taxes.
• 3:42
  And so,
• 3:42
  and,
• 3:42
  and you could have estate taxes on your non tiled property too.
• 3:47
  It all contributes to the value of your estate.
• 3:50
  Um And then you also want to understand what happens if you die without a will in Kentucky,
• 3:54
  what if there aren't a plan in place for your possessions?
• 3:57
  And,
• 3:57
  and there are some publications that we already have that will link in the show notes that you can begin to read about those things so that when you meet with an attorney that you,
• 4:07
  um,
• 4:07
  you go in informed and so we'll link those documents in the show notes and that's always a great plan because as we know,
• 4:13
  attorneys charge by the hour.
• 4:15
  Right.
• 4:15
  So if you're,
• 4:16
  if you're ahead of the game,
• 4:17
  it will save you a little bit of money.
• 4:20
  So,
• 4:20
  what if someone is thinking to themselves?
• 4:23
  Well,
• 4:23
  I don't have a large estate.
• 4:25
  I really don't need to worry about planning for my estate.
• 4:28
  I don't need to worry about what's gonna happen to my belongings.
• 4:31
  What do you say to them?
• 4:32
  Yeah.
• 4:32
  Well,
• 4:33
  I'll,
• 4:33
  I'll often start the conversation if you've got,
• 4:35
  you know,
• 4:35
  a shirt on your back.
• 4:36
  Chances are good.
• 4:37
  You've got an estate and,
• 4:38
  uh,
• 4:38
  and so our estate can really range.
• 4:40
  We don't need some big,
• 4:42
  um,
• 4:42
  you know,
• 4:43
  big,
• 4:43
  sprawling land and,
• 4:45
  and,
• 4:45
  and home and property to have an estate,
• 4:48
  you know,
• 4:48
  um,
• 4:48
  everyone has an estate because everyone has things that they own.
• 4:53
  And so,
• 4:53
  you know,
• 4:54
  the next step really is to really understand what,
• 4:56
  you know,
• 4:57
  constitutes your estate.
• 4:58
  And so after your death,
• 5:00
  everything that belonged to you must be distributed.
• 5:04
  Now that is those cherished possessions.
• 5:06
  That's that title property,
• 5:08
  but it's also your call.
• 5:10
  It's full of clutter.
• 5:11
  It is sure it is.
• 5:13
  Um,
• 5:13
  everything,
• 5:13
  collecting dust in your attic and the things in your garage.
• 5:17
  Yes.
• 5:17
  The things in your garage that you haven't touched for 30 years.
• 5:20
  You know,
• 5:21
  it is the food in your pantry,
• 5:22
  it's the the clothes in your closet.
• 5:24
  And so really taking a look at everything that you own because while the process of selling your estate can be overwhelm to you,
• 5:35
  it,
• 5:35
  it is also overwhelming to those we leave behind.
• 5:39
  And so your executor or the loved ones who have to settle your estate,
• 5:44
  they have to make really hard decisions about what happens to everything.
• 5:47
  What was special,
• 5:48
  what wasn't special.
• 5:49
  And this is why the conversation of planning for non title property is also very important because it offers some direction for our loved ones to know what to do.
• 6:00
  It can alleviate some of the burden.
• 6:02
  It allows you to begin decluttering,
• 6:04
  begin to make a plan for your belongings.
• 6:08
  And I think that's very important.
• 6:10
  Uh My parent,
• 6:11
  grandparents have been gone about 12 years and my dad and my aunt inherited everything and it's just been in the last five or six years that my dad started saying,
• 6:21
  what would you like to have from the house?
• 6:24
  And the few things,
• 6:27
  very few things that I've asked for aren't there anymore.
• 6:30
  And so if I had spoken up sooner or if he had asked sooner,
• 6:34
  then maybe I could have gotten those things that were special to me,
• 6:37
  who knows what happened to him,
• 6:39
  who knows where they are and maybe,
• 6:41
  maybe they've been gone a long time and I just didn't realize it.
• 6:44
  You know,
• 6:44
  they were just things from my childhood that I remembered that I,
• 6:47
  that I thought were special,
• 6:49
  you know?
• 6:50
  Who knows?
• 6:51
  Right.
• 6:51
  Well,
• 6:52
  well,
• 6:52
  you know,
• 6:52
  we often don't want to talk about it.
• 6:54
  Right.
• 6:54
  Because older generations,
• 6:55
  it's a hard time because you're facing your mortality.
• 6:58
  But then younger generations you don't want to look like,
• 7:00
  right,
• 7:01
  the prodigal son asking for your inheritance before.
• 7:04
  And so it can become a very awkward space for families to have conversations.
• 7:09
  And so,
• 7:10
  you know,
• 7:10
  your family I think is,
• 7:11
  is one of many who would say that we just didn't start the conversation soon enough.
• 7:16
  And so we didn't have this conversation.
• 7:18
  So I hope if at the very least you leave here,
• 7:21
  you know,
• 7:21
  ready to have a conversation with your loved ones and we're not talking about major things we're talking about.
• 7:26
  Right.
• 7:26
  Well,
• 7:27
  we often are because it's those things that hold sentimental value,
• 7:30
  right?
• 7:31
  It is that lucky that lucky fishing hat or it's those little things.
• 7:35
  It is those little things.
• 7:37
  Um,
• 7:37
  you know,
• 7:37
  maybe that little table or that homemade quilt that,
• 7:41
  you know,
• 7:41
  that the hand knitted a scarf.
• 7:43
  But it's those little things that we attach childhood memories to.
• 7:46
  And so sometimes it is not the big title property that can cause conflict after um,
• 7:51
  you know,
• 7:51
  when an estate settled,
• 7:53
  but it's those cherished things.
• 7:54
  It's those little things and And so if you are the owner of those cherished things,
• 8:00
  and so if you can help to clarify and simplify that process,
• 8:05
  then it can relieve some of that conflict or it can help families who are already,
• 8:10
  you're missing your loved one,
• 8:11
  right?
• 8:11
  And then you,
• 8:12
  the last thing,
• 8:12
  your family needs to get in a fight over who,
• 8:15
  who gets that,
• 8:16
  um,
• 8:16
  that,
• 8:16
  that unique keepsake.
• 8:17
  Well,
• 8:18
  and we probably think that smaller families will have fewer people to distribute things to.
• 8:25
  So it won't be as big of a deal,
• 8:28
  but you still have to distribute,
• 8:30
  you still have to distribute.
• 8:31
  So if you have a sole beneficiary and so yeah,
• 8:35
  we,
• 8:35
  we think that having large families can complicate the process and it absolutely can.
• 8:41
  But it is still complicated even if there is a sole beneficiary because like we say,
• 8:45
  it is the entire estate to distribute and,
• 8:48
  and sometimes,
• 8:49
  you know,
• 8:49
  smaller families and smaller teams,
• 8:52
  you know,
• 8:52
  you'll have your executor,
• 8:53
  but you'll also likely have others that,
• 8:57
  that have a say so.
• 8:58
  Right?
• 8:58
  And that or,
• 9:00
  and some people have big say so and,
• 9:02
  and so that the more planning we can do in advance that,
• 9:04
  the more we can help just kind of diffuse some of that stress.
• 9:07
  I imagine,
• 9:08
  I imagine that we all have larger estates than we realize when you consider everything that you've accumulated over the years.
• 9:15
  So it can probably feel overwhelming just to start the process.
• 9:19
  So what tips do you have for making the task of transferring non titled property?
• 9:25
  Yeah,
• 9:25
  it goes back to planning.
• 9:27
  I know that with all of my topics,
• 9:29
  I say this a lot,
• 9:30
  but I am a planner,
• 9:31
  right?
• 9:31
  And so um start by creating an asset distribution plan.
• 9:36
  And so this helps you decide who gets what and it's exactly what it says.
• 9:40
  It helps you.
• 9:41
  It's a plan for distributing your assets.
• 9:44
  So what belongs to you who is going to get it?
• 9:48
  And so your plan,
• 9:49
  it should include four columns.
• 9:50
  So possession,
• 9:52
  recipient reason and distribution method.
• 9:55
  And this can be fancy,
• 9:57
  you can type it out.
• 9:58
  It can also be handwritten.
• 9:59
  This is just for you to begin inventorying your home.
• 10:03
  And I'm guessing the sooner you start this process,
• 10:06
  the better it doesn't,
• 10:08
  you don't have to wait until you're 70 years old to do it.
• 10:11
  I can start now in my fifties.
• 10:12
  Right.
• 10:12
  You absolutely can,
• 10:14
  you can start it.
• 10:15
  You can in your forties,
• 10:16
  you can,
• 10:16
  right?
• 10:17
  Because,
• 10:17
  because we all have an estate and we're not promised long life.
• 10:21
  I think that is the assumption that we,
• 10:23
  we operate on and if,
• 10:25
  if we get it,
• 10:25
  then we are so blessed.
• 10:27
  Um But any time you have an estate to manage,
• 10:30
  the more timely you can get your,
• 10:32
  your affairs in order the better for everyone.
• 10:35
  And so your asset distribution plan can start small and it can start very informal.
• 10:40
  So by having,
• 10:41
  you know,
• 10:41
  get yourself a legal pad or a notepad and just put four columns on it.
• 10:46
  And so,
• 10:47
  um,
• 10:47
  again,
• 10:47
  possession,
• 10:48
  recipient reason and distribution method start in one area of your home and then start,
• 10:54
  ok,
• 10:54
  what's in the at home?
• 10:55
  So your possession,
• 10:56
  you may,
• 10:56
  maybe you're starting in your kitchen and so your possession may be your sets of dishes.
• 11:01
  And so that's your possession and the recipient.
• 11:04
  So if you are,
• 11:06
  you want it to go to a certain family member,
• 11:09
  uh,
• 11:09
  a son or a daughter or a granddaughter,
• 11:12
  um,
• 11:12
  put that person,
• 11:13
  if you want it to be divided,
• 11:14
  put how it should be divided and you know,
• 11:17
  say it's your everyday plates and nobody wants them right?
• 11:20
  Then put these aren't special,
• 11:22
  give them,
• 11:22
  donate them to somebody who can use,
• 11:24
  use them if nobody wants them.
• 11:26
  So give a reason why something is,
• 11:28
  or isn't special to you.
• 11:30
  And if,
• 11:31
  um,
• 11:31
  if something should go to a certain recipient,
• 11:34
  maybe explain why because that can help lower that conflict.
• 11:38
  It can absolve some of that ambiguity,
• 11:41
  right?
• 11:41
  Like if we don't know why,
• 11:43
  then we're going to assign reason.
• 11:45
  And so if you can go ahead and give that reason,
• 11:47
  it can help.
• 11:48
  And then,
• 11:49
  so that distribution method again,
• 11:50
  so that might be let this person have it and if they don't want it,
• 11:53
  sell it or donate it,
• 11:55
  but the more specific you can think through and then if you stumble across something that you're like,
• 12:00
  why am I still holding on to this?
• 12:02
  Right.
• 12:02
  If it's trash,
• 12:03
  that can be declutter,
• 12:04
  throw it away.
• 12:05
  If you want to have a yard sale,
• 12:06
  go ahead and get rid of some things to help,
• 12:09
  um,
• 12:09
  to help reduce your estate size.
• 12:12
  And so if you can go ahead and declutter,
• 12:14
  it will help everybody.
• 12:16
  And if there's something that somebody needs to use now give it to them.
• 12:20
  Right.
• 12:20
  Absolutely.
• 12:21
  Absolutely.
• 12:22
  And you know,
• 12:23
  we will leave another publication that we have is understanding uh estate taxes because it can get complicated.
• 12:30
  And so if you give away parts of your estate that are valuable that hold value,
• 12:34
  um and you give them away within so many years of your death or if you give them away in anticipation of your death,
• 12:41
  there may be,
• 12:42
  there may be some tax and so you just want to understand that,
• 12:46
  but no,
• 12:46
  absolutely.
• 12:47
  Go ahead and give things to somebody that can use them or that maybe there's a story you want to pass along or there's a special meaning that it holds that you want to explain to your loved one why.
• 12:59
  And so they can hear those stories from you from you now.
• 13:02
  And so yeah,
• 13:03
  those are great things and,
• 13:04
  and I'm a big fan of stories.
• 13:06
  So if there is a story,
• 13:08
  if you're not giving it away,
• 13:09
  now,
• 13:09
  put the story with the item so that they,
• 13:12
  they know what,
• 13:13
  that's absolutely creating a plan to distribute your assets is important.
• 13:18
  And sometimes emotions run high when estates are settled.
• 13:21
  So knowing your wishes can help loved ones or your executor takes a guesswork out of determining who gets what after your death.
• 13:29
  Are there other ways to communicate these wishes?
• 13:32
  Yeah.
• 13:32
  And so in addition to an estate plan,
• 13:34
  I often suggest writing a letter of last instructions.
• 13:39
  And again,
• 13:39
  that's exactly what it says.
• 13:41
  And,
• 13:41
  and,
• 13:41
  and I,
• 13:42
  I often preface it,
• 13:43
  get yourself a box of Kleenexes,
• 13:45
  right?
• 13:45
  Because it can stir up a lot of emotion and that's ok.
• 13:49
  And,
• 13:50
  and um because um you are writing down those stories.
• 13:55
  And so,
• 13:56
  uh you know,
• 13:57
  a letter of last instruction is something that can be um attached to your will.
• 14:02
  It's an informal letter that provides instructions to your family or your executor or your attorney about your final wishes when you're settling your estate.
• 14:12
  And so you can uh use this letter to let your heirs know where certain important things are located.
• 14:19
  Um You may include instructions for funeral arrangements.
• 14:23
  Um You also may include those stories.
• 14:26
  It could include your asset distribution plan.
• 14:28
  It could also include those,
• 14:29
  those stories,
• 14:30
  just things that you want people to know.
• 14:32
  And so this doesn't have to be done in one sitting.
• 14:35
  You can have different letters for different people.
• 14:38
  But if it includes funeral instructions,
• 14:41
  if it includes a location of important documents.
• 14:43
  You wanna make sure that your executor has,
• 14:45
  has a copy of that.
• 14:47
  So if your important documents are tied up with your estate,
• 14:53
  then it can become complicated.
• 14:55
  And so you,
• 14:56
  you love may have to plan your funeral before they ever read your,
• 14:59
  you know your funeral instructions.
• 15:00
  And so a letter of last instruction helps you just better articulate those wishes.
• 15:06
  It helps take that guess work like you said,
• 15:08
  out of what can be a stressful time.
• 15:11
  And then if you are overwhelmed with this and,
• 15:13
  and you see that this task stirs up a lot of emotion,
• 15:17
  reach out to a loved one,
• 15:18
  you know,
• 15:18
  reach out,
• 15:19
  it could be um a family member,
• 15:21
  a trusted friend.
• 15:22
  Um it could be a professional,
• 15:24
  so a counselor or um it could,
• 15:27
  you know,
• 15:27
  a clergy member,
• 15:28
  but somebody who can help you just navigate this process and who can be a sounding board for you as you,
• 15:35
  you think through some of these.
• 15:36
  And I'm guessing that this letter of last instruction doesn't necessarily have to be written.
• 15:41
  It could be a video tape or so whatever you're comfortable with in leaving your instructions.
• 15:50
  Nicole,
• 15:50
  thanks so much for joining me today.
• 15:52
  How can our listeners learn more about transferring non title property?
• 15:57
  Yeah,
• 15:57
  this is just AAA small portion of a larger curriculum that we have with Family and Consumer Sciences Extension.
• 16:03
  And so if this has piqued your interest.
• 16:05
  Then I would encourage you to reach out to your County extension office and ask your S CS agent.
• 16:11
  How can you,
• 16:12
  how can you learn more?
• 16:13
  Um You know,
• 16:14
  when are they offering a workshop on transferring cherished possessions?
• 16:18
  That's the name of it.
• 16:19
  But it really unpacks it,
• 16:20
  it's,
• 16:21
  it's four lessons on things like communicating without conflict and who gets what and understanding distribution methods and more about things like an asset distribution plan and a letter of last instruction.
• 16:33
  So it is much more than this 15 minute uh conversation.
• 16:37
  But either way we hope that we can equip you so that you are less overwhelmed and that it can become more of a conversation and feel less overwhelming.
• 16:45
  So I think these are all great tips and I really do feel like that this can be a bonding time for families as they move through this process.
• 16:53
  Thanks for joining me,
• 16:53
  Nicole.
• 16:54
  Thanks for having me,
• 16:55
  Mindy.
• 16:55
  If you are just tuning in,
• 16:57
  you are listening to Talking Facts.
• 16:58
  We are available on all major podcast providers.
• 17:03
  Thank you for listening to talking facts.
• 17:05
  We deliver programs focusing on nutrition,
• 17:08
  health,
• 17:09
  resource management,
• 17:10
  family development and civic engagement.
• 17:13
  If you enjoyed today's podcast,
• 17:15
  have a question or a show topic,
• 17:16
  idea.
• 17:17
  Leave a like and a comment on Facebook at UK F CS E X T or send us an email at UK F CS E X T at UK Y dot E D U visit us online at F CS dot UK Y dot edu to learn more about the University of Kentucky Family and Consumer Sciences Extension Program or contact your local extension agent for Family and Consumer Sciences.
• 17:43
  We build strong families,
• 17:45
  we build Kentucky.
• 17:46
  It starts with us.