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When you create a Last Will and Testament (“Will”) with an estate planning attorney,
one of the things you will do is decide how you want your property distributed.
Property that is not real property, is generally classified for purposes of estate
administration as either tangible or intangible property.
As a result, it is important to understand the differences so that you can make sure that
your estate plan is set up to distribute your assets the way you want them to be
distributed.
Cars
Trucks
Boats
Recreational Vehicles
Furs
Jewelry
Collections
Firearms
Tools
Furniture
Books
Pets
Yes, you read that right. Legally, pets are considered to be “property.”
To meet the legal definition, “tangible” property must not only be tangible, of course, but
also weighed and “physically relocated.”
Keeping up with the law’s definitions of tangible and intangible personal property is key
in estate planning and probate administration. For example, Florida recently passed a law
stating that precious metals, in any tangible form that are kept for their historical or
artistic value or uses other than as legal tender, are considered to be “tangible personal
property.”
Intangible property also covers a wide range of property. Some examples of intangible
property include:
Copyright
Trademark
Logos
Patents
Stocks
Bonds
Intellectual Property
Your brand
How property is identified in a Will and how it is classified (i.e., whether it is tangible or
intangible or “personal property” or not) can affect the outcome of how the property is
distributed.
Because in many cases, generic references to property in a Last Will and Testament —
such as, “I leave all my personal property to my cousin, Bob” —can lead to confusion or
family feuds over who gets what. And family disputes often embroil the estate in messy
and expensive litigation. Plus, very often the wrong person ends up with the property.
To avoid this, Florida uses a separate memorandum that allows a testator to create a list
of certain personal property (not all personal property can be devised this way) along
with his/her instructions on who should get what. The list must follow the law’s
requirements concerning proper form, and it must be specific.
It isn’t a cure-all, and not all property can be directed in this way (intangible property
cannot be included in this list), but Florida’s separate writing statute goes a long way
towards preventing distribution problems when it comes to tangible personal property.
Don’t let the differences between tangible and intangible property confuse you. Consult
an experienced estate planning attorney.