A legacy book, which details an individual’s possessions, including artwork and antiques, as well as what each is currently worth, is a remarkable tool for clients to document and communicate their values, beliefs and intentions for the distribution of their personal property and assets after they pass away. By creating a legacy book, clients can provide context and meaning to the appraiser and their heirs about the sentimental and personal value of their possessions. The legacy book can be used as an amendable addendum to the client’s will.
How to Create
The act of creating a legacy book is significant in and of itself and can be a meaningful one. It can help your clients take stock of their lives, reflect on what they’ve accomplished and design the legacy they want to leave behind.
To generate the legacy book, your client hires an appraiser to tour the family home. The client’s family, including children and grandchildren, may also join the tour. The client tells the story behind each item of value in their home and its importance. A silver teapot may have been passed down from a great-grandmother, or there may be a painting purchased during a Paris honeymoon. Sharing the history of each item reflects the client’s beliefs and values. Often, these conversations are easier with a facilitator who’s not personally involved with the estate. The client’s children and grandchildren, who may have taken these items for granted, may learn the significance and meaning of these items. The appraiser can also do some research and provide a current appraisal range for each piece.
An estate may include a collection of figurines that may not have a high monetary value, but as a whole, the items are extremely sentimental to the client and their family. By providing context and meaning for these items in the legacy book, the attorney/executor will be able to understand the personal value of these items and ensure that they’re properly noted in the estate. This will be particularly useful for items that may have been passed down through generations or have historical value that isn’t easily quantifiable.
Dispute Avoidance
The legacy book can help to avoid confusion and disputes in estate administration. For example, an individual may wish to leave a specific piece of jewelry to a family member or a specific collection of books to a college library, and by documenting these wishes in a legacy book, they can ensure that their intentions are carried out. This can be particularly important for families that have complex dynamics and relationships, allowing clear communication about intentions that will help prevent future misunderstandings and conflicts.
If the owner of the legacy book doesn’t have specific wishes for certain items that are to be left behind, the legacy book can be a helpful tool in the eventual and equitable distribution of those items in the estate. Family members will possibly see the book prior to the client’s death and use this document to make their own wishes known. By noting a range of values per item, a legacy book permits the family members to pick and choose items in such a way as to balance their gift values with siblings and other family members. Such a process can head off potential future conflicts headlined by “You got more than I did!”
What’s it Worth?
Clients may be surprised at the appraisal value of the items reviewed. In one case I handled in which we toured a home to appraise the art and collectibles, we found a book that cost the client $1 at a used bookstore in New York. It was the original precursor to Eli Wiesel’s Night and was valued and sold for $12,000.
Another client had a beautiful silver tilting teapot in the shape of a large rose bud that was venerated and highly valued as it was “Britannia Silver.” When reviewed, it was found to be silver plated, and the fair market value of the pot decreased from the storied $35,000-plus to a possible $1,000.
Note that a collection may be worth a lot of money, but not sellable. In one case I handled, contention erupted with a large estate that included a massive collection of ivory figures that was valued at over $2.3 million for purposes of the estate tax. But the collection couldn’t be monetized as the sale of an ivory collection is prohibited. An heir decided to take the collection in lieu of $2.3 million dollars in cash. The legacy book noted this value and the inability to sell the collection.
Tax/Estate Planning
Additionally, a legacy book may also be beneficial for tax and estate-planning purposes. By documenting the sentimental and personal desires of possible heirs of the personal property and assets, individuals can ensure that these items are properly valued for estate-planning purposes. This can help to minimize taxes by maximizing the distribution of assets to inheritors prior to death. It can also help to ensure that all of the assets are accounted for and included in the estate plan, which can be particularly consequential for individuals with large and complex estates.
A legacy book also serves as an ethical will to future generations. Many individuals include in their ethical will stories about their life, personal beliefs, spiritual practices and advice for future generations. In this way, individuals can ensure that their values and beliefs are passed down to future generations and that their legacy lives on. While telling the stories behind the many treasured items in their estate, a client may speak of the personal legacy that goes beyond just material possessions. This can be particularly important for those who have had a significant impact on their community or society. Passing ideals from one generation to the next is truly important to seniors.
Clients who are dealing with end-of-life decisions may want to use a legacy book as a means of ensuring that their wishes are carried out in the event of incapacitation or dementia. By documenting stories and wishes while still mentally able, a client can make certain that their heirs are gifted as desired on the client’s death and that their assets are distributed in a way that aligns with their values and beliefs.
A legacy book can be a useful vehicle for clients who want to make a philanthropic impact on their community or society. By including charitable giving instructions in the legacy book, clients can ensure that specific assets are distributed to causes that support their values and beliefs.