How do you place a fair monetary value on a sentimental item while dividing an estate?
How do you place a fair monetary value on a sentimental item while dividing an estate?
One of the most difficult tasks that family members and executors of an estate must face is coming up with a fair monetary value for a sentimental item while dividing the estate. What may seem completely worthless to one person could mean the world to another.
When a loved one dies, there are many factors to consider when dividing up their possessions. The sentimental nature of the deceased's belongings makes it difficult to determine their monetary value, but at some point you have to put a price on them in order to make an equal distribution among the heirs.
In order to be fair, you will probably want to take into account how much the item meant to each person. This is where it becomes difficult, especially when there are multiple people involved. If three people all owned a family heirloom and each one wanted it back, would you split it into three pieces? Or would you give it back to the original owner and let them do what they wanted with it? In some cases, this can lead to very expensive and time-consuming court proceedings.
Is there a way to find the most fair monetary value for a sentimental item? One solution is to have those who want the item place bids on it, just as if they were trying to buy something in an auction. The highest bidder gets first choice on what happens next with regard to the item and then passes along their decision (or lack thereof) to the next highest bidder, and so on until everyone has made their decision. This process can be time consuming for those who are not in immediate need of the item.
It's also important to keep in mind that in many countries (such as the United States), any heirlooms or sentimental items in the estate will have already been divided among family members before the executor takes over and divides up the rest of the money left behind. The remaining cash and possessions should probably be divided up according to what each person needs or wants.
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West Jordan UT 84088
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Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
