How to Handle the Personal Property in an Estate. Division of Assets.
“The best inheritance a father can leave his children is a good example”. John Walter Bratton, Composer (1867 – 1947)
Every person – regardless of what personal properties or real estate they own is encouraged to create a will or do estate planning. This is to pursue a peaceful transition of generational wealth from one person to another and to prevent any family disputes. Wills and estates law regulates the transfer of different types of property. In Canada, there is no single federal law on wills and estates. They are controlled by each Province and or territory. This also applies to Power of Attorney, probate, guardianship and trusteeship. In Ontario, we are governed under the Succession Law Reform Act (SLRA) and the Estates Act. In Quebec, wills and estates fall under the Quebec Civil Code.
Advantage 1: Accurate Valuation
The most common estate in Canada is an elderly person, who has amassed real estate property and personal property. For real estate, a qualified real estate appraiser should be consulted. For everything else, called personal property, jewelry, fine art, cars, collections, antiques and a large selection of household items. Keep in mind that every household is different. The values of the totalled inventory of an estate will vary depending on the standing of the individual. There are estates, which had art collections, wines, classic cars, jewelry and other assets. Some estates were more modest, but had selected items of great value. It knows what you have or are tasked with identifying items within an estate. Some estates had the foresight to inventory and document all items of value. Some estates have mountains of stuff, some of value and some not so valuable.
There have been cases where items thought to be common, turned out to be high-value items. An example of an Art Nouveau “Venetian” desk lamp with a cut glass shade turned out to be a “Tiffany Lamp” from 1907. The estate was able to sell the lamp in auction for over $300,000.00 dollars. It is in the best interest of the estate and beneficiary or beneficiaries to know the value of the estate contents.
Advantage 2: Detailed Documentation
Having an inventory or manifest of the estate will benefit the beneficiary or beneficiaries in the following ways; It will provide an accurate value of the estate, broken into categories of real estate property and personal property. So the listed beneficiaries can divide the estate equally and fairly. In many estates, there were instructions of gifting various properties to certain individuals and or groups and percentages of estates already assigned. In a perfect world, all of this will be pre-planned. Sadly that is not the case for most of the population. Contention between beneficiaries does and will happen. In many cases an item promised to one, might turn out to be of a higher value, and in some cases the most valuable of the total estate. This might lead to further legal issues and or problems down the road.
In conclusion, having your estate handled by a professional brings invaluable benefits. From accurate valuations and detailed documentation to expertise in personal property identification, these advantages contribute to a thorough understanding of your estate’s worth. Don’t forget to consult with your local legal professional, he or she will be able to advise you and answer some questions. In most cases, they can guide you through potential pitfalls and help you to maximize the overall value of the estate. There are also potential tax issues that might have to be dealt with. A professional accountant who has experience in estates might be required. In all cases, dealing with persons who are conflict of interest-free is very important.
Disclaimer Prestige Evaluation Inc. does not engage in any buying or selling of any personal property. Prestige Evaluation Inc. can not do any verbal appraising without a work file and consultation. The seller/buyer needs to do his or her own due diligence, before accepting an offer to purchase or in selling your personal property. For any company referred or named in this document, there is no financial consideration or relationship between Prestige Evaluation Inc. and John Grow or Suzanne Charlebois.
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