Most people understand that a typical estate plan disposes of real estate, bank accounts and investments. However, many estate plans do not necessarily cover meaningful personal items, such as jewelry, artwork, collectibles, furniture, or other sentimental items (such as pictures and family heirlooms), which can lead to discord among family after you pass away. These items are referred to as “tangible personal property”.
New Jersey Statute 3B:3-11 allows individuals to easily prepare a list or memo of some sort that describes specific items of tangible personal property and states who is to receive such items at their death. Pursuant to this statute, a Will can reference such a separate list or memo. Such a statement can be created before or after a Will is executed, and may be updated over time and upon successive occasions. However, to be legally effective, it must either be in the handwriting of the person making the Will or signed by such person, and it must clearly describe both the items and who should receive them.
One of the most practical features of N.J.S.A. 3B:3-11 is its flexibility. Unlike the formal requirements for executing a Will, which typically must be signed by the testator in front of two witnesses and a notary in order to be self-proving, a tangible personal property list just needs to be signed and dated. Specifically, it does not need to be witnessed, notarized or updated with the assistance of an attorney. This means you can keep a current tangible personal property list that is legally recognized without the legal formalities of executing and modifying a Will and/or a Codicil.
Even with its benefits, it is important to be mindful about keeping your tangible personal property list, as well as your Will, up-to-date. The latest version of your tangible personal property list will control the disposition of your tangible personal property. Accordingly, if you change your mind regarding who you want a certain item to go to, or if you want to add or eliminate items, you need to do so by updating your tangible personal property list. Additionally, because the tangible personal property list becomes part of your testamentary plan only by reference in your Will, so you need to ensure that your Will references N.J.S.A. 3B:3-11 and directs to such a list. Most importantly, you must remember that the tangible personal property list does not cover non-tangible property, so you can’t give cash out in such a list–that still must be stated in your Will.
In practical terms, N.J.S.A. 3B:3-11 can help reduce confusion and family disputes after a loved one passes away, which will result in a smoother, less emotional estate settlement process. If you would like to discuss creating or reviewing your estate plan, as well as the incorporation of a tangible personal property list, please contact our office to schedule a consultation with one of our attorneys today.
