The book The Joy of Financial Security covers many financial topics, including estate planning. I encourage my clients to get their finances and legal documents “in good order” so that members of their family or an executor can more easily sort through everything in case of their disability or death.
I provide my clients an estate planning binder that begins with a spreadsheet that summarizes their finances. A copy of the spreadsheet (for you to use) is on the website www.joyoffinancialsecurity.com.
However, deciding to get your estate “in good order” goes beyond getting your legal documents updated and organizing your financial life. Another essential part is to decide who should receive your personal items.
Often, included in your legal documents, an estate attorney will include a blank form that is titled “Letter of Instruction.” Most people never fill it out, and they are probably unaware of the document. Or maybe they are avoiding the task because it involves thinking about death. A letter of instruction conveys your wishes for who should receive your personal items. It is especially important for family heirlooms, jewelry, artwork, or furniture that is not specified in your will.
Many years ago, the University of Minnesota created a program called “Grandma’s Yellow Pie Plate.” It discussed that the item that your children or grandchildren would treasure most after you die is probably not expensive. It may not be the set of china or crystal glassware that you have always loved. It may be a yellow pie plate that holds warm memories for your children or grandchildren. It may be a skillet used for frying chicken or a cookie jar that held homemade cookies.
There are several ways to help your children or grandchildren receive the personal items that they value most. One way is to invite your children or grandchildren into your home and ask them what they would like to have after you’re gone. Another way is to have them come into your home (one at a time) while you are away, and ask them to create a list of the items they would like to receive, ranked in order.
Once your children, grandchildren, or friends have created their lists, compare them and the way items are ranked. It is possible that three children may have all selected the same item, but perhaps it was listed first on the list by only one child. You can assign the items based on the rankings. Once you have decided who will receive your personal items, you can create the letter of instruction. Keeping a sense of humor during this process will keep it from becoming depressing and difficult. We all know we are going to die one day, so addressing it honestly is a healthy approach. Sharing with your family that you want them to receive personal items they enjoy is a generous gesture, and it encourages rich family experiences.
