Are your Diamonds in your will?

[kenny]

If you don''t have a will they will just pass on to your next of kin.

Or have you written a will designating a specific recipient for each fine peice of jewelry?

BTW, this question is for women of ALL ages.

 

[Dee Jay]

I''ve been thinking about this lately (I''m 35, by the way and am not having children) and don''t know what I''ll do with my jewelry. I suppose if I knew my demise was coming with enough time to do a will I would consider which of my friends to leave things to, but if I get on in age and am just doing a will in general (with no imminent demise in sight) I would consider leaving my jewelry to my niece (my husband''s sister''s daughter). She''s only 4 now, so who knows if she''ll appreciate it. (Hopefully I have many years to find that out!) Or, I have also considered leaving instructions to have my jewelry sold and the proceeds given to a charity (as of right now the Anti Cruelty Society is the one I''m thinking of).

All that being said, I hope to have many many years to enjoy it myself first!!!

 

[RockDoc]

Date: 2/16/2006 2:06:22 PM
Author:kenny
If you don''t have a will they will just pass on to your next of kin.

Or have you written a will designating a specific recipient for each fine peice of jewelry?

BTW, this question is for women of ALL ages.

A lot of consideration here.

Before I write more, I''d like to mention that everyone''s estate is different, and the laws governing how the estate is to be split up among the heirs is also different.

For individual estate planning, those concerned about it should consult with an estate planning specialist attorney when making their will, and perhaps your tax professional too.

That said, here''s my comments.

A lot depends on the wishes of the owner of jewelry or other personal property.

If you want specific jewelry items distributed to specific people, then it''s probably prudent to list which items go to which people in your will. However, by doing this if the total amount of your estate is high and therefore subject to Federal Estate Tax, the estate will be charged for the tax on those listed items, and they will have to be appraised, as of the date of death.

IRS does change it''s rules on this every year, so best to keep informed as to what the changes are, and address this in your will.

If you own a house that has a high value, that MAY subject you to having the estate to pay estate taxes. I am not sure what the threshold amount is, but I think it is about $ 600,000. which would be the deceased gross value of the estate.
Given the value of many pension, profit sharing plans and a house, it isn''t hard to exceed this amount.

From experience, in having to appraise items of jewelry in estates, most do not list the jewelry items in their wills, and the executors of the estate, many times are more interested in how the items are to be equitably distributed between the heirs should there be more than one heir.

An alternative to this is of course gifting the item before one dies.

Another is establishing a trust, or possible donation when that is appropriate.

The next of kin, consideration could be troublesome if the next of kin, is several children, or multiple brothers and sisters or other family relations ( nieces, newphews, cousins etc), and not a spouse.

Hope this helps.

Rockdoc

 

[kenny]

Than you Rock Doc.

When it comes to gifts can a person just quietly give, say, a $30,000 ring to someone.
Or are they both supposed to report this to the IRS with the recipient paying tax on it?

I think gifts of cash under $10,000 per year are allowed federal tax-free.
I don''t know if this applies to jewelry.

It does sound wise to distribute things like fine jewelry if you know your time is near.
It assures the correct recipient and allows you to at least get a hug and a thank you in return.

 

[oldminer]

Being realistic and not legalistic, one can give a piece or a collection of jewelry to a loved one in advance of their death without much concern about the IRS limits. However, I would never advise anyone to break the law. It is just a loophole through which one might take a jump if they chose to.

Listing items in a will is something people might want to do, but it will normally result in taxable consequences to the estate in states where there are inheritance taxes, like PA. Not so, in Florida or Nevada, I believe. Each state has its own rules. Federal taxes are onerous on high value estates, besides.

Distribution of personal property to future heirs during one''s lifetime is something to consider. If you can afford to give away assets, if you believe taxes will be avoided and that the person getting the property will be happier for the gift, then it is up to your conscience and your political position. If you intend to run someday for public office, then best not to hide anything illegal or unethical in your history. The media is very adept at finding faults of this sort in potential candidates. If you are a private citizen and intend to stay one, then you might have a little more lattitude.

Again, I don''t condone these things, but the reality of small personal property is that it can be used to pass on wealth to future heirs in a quiet manner during one''s lifetime.

 

[Dancing Fire]

Date: 2/16/2006 2:18:45 PM
Author: Dee Jay
I''ve been thinking about this lately (I''m 35, by the way and am not having children) and don''t know what I''ll do with my jewelry. I suppose if I knew my demise was coming with enough time to do a will I would consider which of my friends to leave things to, but if I get on in age and am just doing a will in general (with no imminent demise in sight) I would consider leaving my jewelry to my niece (my husband''s sister''s daughter). She''s only 4 now, so who knows if she''ll appreciate it. (Hopefully I have many years to find that out!) Or, I have also considered leaving instructions to have my jewelry sold and the proceeds given to a charity (as of right now the Anti Cruelty Society is the one I''m thinking of).

All that being said, I hope to have many many years to enjoy it myself first!!!

DJ

don''t forget,i''m your best friend.

 

[Dee Jay]

DF, you might want to come over and dig through my meager pile of jewels before you make a friendship commitment like that--There might not be anything in my jewelry box that you want when the time comes!!

 

[hlmr]

Kenny:

You make a good point. I don''t have any specific designations and I should.

Thanks,

Heather

 

[gailrmv]

Dee Jay,
I would PM you if it still existed. Can you tell me about the cutie in your avatar? He/she reminds me a bit of my two tan girls! Mine are both shelter dogs. I''m not sure their breed- mine look a lot like shep/labs except that they are both about 40 pounds, smaller than sheps or labs. So, no clue what they are. I just love dogs!!
Gail

 

[AndyRosse]

Well just a note on taxes, in 2005 I believe you could give a gift to as many people as you want up to $11,000 each without paying the federal gift tax (can be cash or FMV of property, including jewelry). I believe it went up to 12,000 for 2006. (*So if anyone would like to give me a gift and have it be exempt from the gift tax, I will be more than willing to accept

)

Also, when you die, your estate will not be charged federal estate taxes on the first $2,000,000 in 2006 (1,500,000 in 2005). I think in like 2010 there will be no federal estate tax at all. Then in 2011 it will go back down to 1,000,000 unless Congress changes it. There are discussions going on right now about how people might try to keep their relatives alive until 2010 in order to receive the large federal estate tax break (but remember, most states now also charge estate taxes). And of course, marital transfers are not charged a federal estate tax.

Just an FYI

Of course it is absolutely best to go see a trusts and estates lawyer to make sure you are all set with your will and taxes

 

[widget]

Interesting topic...and the older I get, the more interesting it gets!

I have written a letter of "instructions" to my heirs regarding my jewelry collection.

There are certain pieces I''d like to go to certain grandchildren, niece, etc...

I''ve also included suggestions on how to best sell certain pieces if they decide they want to..Some of the gem/antique vendors I''ve purchased from have ''buy back/broker back" policies that my heirs should know about...

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[monarch64]

Widget, how "legal" is a letter of instructions? I''ve been thinking of doing the same thing, as we haven''t found an attorney with whom we are both comfortable yet. If something happens to me, I have a few things I would like to leave to people other than my husband (we don''t have children yet), but I didn''t know if an actual letter just witnessed and signed by my husband would do the trick. I know this is a question for an attorney, but the advice here has been free so far, lol!

Sorry if I''m hijacking, Kenny...

 

[widget]

Author: monarch64
Widget, how 'legal' is a letter of instructions?

I don't know...I suspect it isn't "legal". I consider the letter more my "wishes" than "my commands!" I did close with the warning that I'd haunt them if they couldn't get along figuring out what to do with the stuff...LOL

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[Dee Jay]

Gail - we adopted Dino (also known as the Demon Dog) from the Anti Cruelty Society in Chicago. They told us he was a German Shepherd/Yellow Lab mix, but we've since learned he's a Carolina Dog. He's a little over 50 pounds.

Here is a blurb from a website: During the last 30 years, the capture and study of free-ranging dogs in remote areas of South Carolina and Georgia has revealed the existence of dogs of primitive appearance fitting the typical long-term pariah (i.e, primitive/dingo) morphotype. They closely resemble types of dogs first encountered by Europeans near Indian settlements in the region as is evidenced by paintings, drawings and written descriptions made by these early explorers and settlers, and are thought to be a direct descendant of the ancient pariah dogs that accompanied Asians across the Bering Straits land bridge 8,000 years ago. Their closest genetic relative is the Australian Dingo.

He has some odd behavorial traits specific to the breed, but we love him anyway!

(Sorry to everyone else who is tired of reading about my dog -- I would have PM'd this to Gail if it had been possible to save you all from another Demon post!)

 

[monarch64]

Hee, hee Widget, that''s funny! My mother has already done the very thing you did, as in writing a letter of instructions (she''s a quilter and has made beautiful works of art that are her treasures due to not having much jewelry--she doesn''t even own a diamond! Where they found ME I''ll never know, lol), and I have wondered the same thing about her letter, although I don''t know exact details. About two years ago, my father, who doesn''t have a will or anything resembling a will, went through a 14 hour surgery to remove cancer, and a few days into recovery he went into cardiac arrest for approx. 30 minutes...he was in ICU on life support and we were faced with a decision of what to do. He hadn''t left any instruction prior to his surgery (he never wants to discuss anything to do with death, just thinks he will live forever I guess), and we went through a terrible time trying to decide whether we should play God or not. Long story short, he is still alive today, still no talk of a will or ANYTHING, but the question was raised back then and although we talked (my mother, older brother and I) about the legalities, nothing was ever set in place as to what any of us would do should a similar situation occur. So, I haven''t wanted to even think of it since. I''m so glad Kenny brought this up, though. It will re-ignite a fire under you know where for me to seek out the right attorney so my husband and I at least can get something together as far as a will/living will/letter of instruction or intent so we never have to go through the "what if''s" of who should get what, or worse, have the gov''t. step in and put a painful hold on things. Thanks Kenny!

 

[BrownEyes]

AHA ~ finally a topic on which I can post as an expert (at least in New York State, where I've been an estate planning attorney for 20+ years!).

First, I'd like to complement Dave Atlas and RockDoc for their thoughtful and accurate posts in response to this thread.

Tangible items like jewelry are not titled, and also, they are not income-producing. Most Wills therefore include a separate paragraph called a Tangible Personal Property Clause which directs the distribution of items like jewelry, antiques, collectibles, household furnishings and the like, so they can be distributed 'up-front', once the Will has been admitted to probate.

More often than not, tangible items are broadly distributed under the Will to the Decedent's surviving spouse or children, or to the Decedent's other close family members, friends or appropriate charitable organizations. Directions can also be included for the Executor to donate or sell those items which remain unselected after the named beneficiaries have an opportunity to choose ...

In the Tangible Personal Property clause of the Wills I create, I include language which states that in addition to the broad distribution set forth in the Will, the Decedent may also leave a separate list, Letter of Instructions or Memorandum which identifies certain items of tangible personal property - like jewelry - for distribution to certain people, rather than separately listing those items for distribution under the Will.

This is done for several reasons:

1. If the Decedent's Estate is taxable (i.e., combined assets over $2 million for Federal Estate Tax purposes although state laws vary), separately itemized tangibles will have to be formally appraised. The appraisals must be included as Exhibits to the Federal and State Estate Tax Returns, and the appraised values will be included as part of the Decedent's Taxable Estate, thereby adding to the estate tax burden. This is what Dave was alluding to in his thoughtful post. In smaller estates this is less of a concern, but read on ...

2. If the client changes his/her mind in the future about the disposition of a particular item, or if the client decides to gift the item during lifetime rather than waiting until death, it's easier, cheaper and more convenient to update the separate list or Letter of Instructions rather than to re-do or amend the client's Will ... No attorney is needed to update the list, but an attorney and proper execution are necessary for the Will or Codicil (i.e., amendment to the Will) to be effective; and

3. If a tangible item like jewelry is specifically mentioned in the Will and can't be located at death, it becomes the Executor's responsiblity to search and account for that item - thus possibly adding to the expense of the estate and the administrative burden on the Executor.

However, a list or Letter of Instructions, standing on its own - even one which is witnessed and/or notarized - would not be legally binding to govern the post-death distribution of tangible items like jewelry without a properly executed Will in-place.

Bottom-line: Regardless of age, if you have assets (large or small), and if you care about the manner in which those assets would be distributed in the event of your death, you need a Will which accurately reflects your intentions in this regard (and which includes proper tax-planning, where needed). Because the Will only speaks at death, it's also a good idea to have a Durable Power of Attorney which names a lifetime Agent to handle finances in the event of premature disability, and a Health Care Proxy which names primary and back-up medical treatment decision-makers to speak for you anytime medical treatment is required and you can't speak for yourself. There are also other end-of-life documents - such as a Living Will or DNR Order, which complement the Health Care Proxy.

None of these documents are age-specific, and all of them are easier to consider when you are healthy with no foreseeable need ...

Finally, all of these documents can be especially important for unmarried individuals in committed relationships, since without this type of planning, your partner or Significant Other won't have any legal authority to speak or act in the event of premature disability or death, while some deference is typically given to a spouse or adult child, even where no planning documents exist.

So much for Estate Planning 101. Sorry this turned into such a saga ... still, I hope it was helpful to those who find it interesting ... as for me, I'd rather learn about diamonds on this Forum!

BrownEyes

 

[monarch64]

Very helpful, BE. Thank you so much!

 

[Logan Sapphire]

My husband and I don''t have any kids (we are planning at some point, though), so I''ve told him and my twin sister that should anything happen, he keeps any jewelry he''s given me (but just don''t give it to the new wife!). My sister gets everything I''ve bought for myself, which to be honest, is most of the diamond jewelry I own. When we have kids, I''m not sure how that will change everything.

 

[gailrmv]

Date: 2/16/2006 11:03:00 PM
Author: Dee Jay

Gail - we adopted Dino (also known as the Demon Dog) from the Anti Cruelty Society in Chicago. They told us he was a German Shepherd/Yellow Lab mix, but we''ve since learned he''s a Carolina Dog. He''s a little over 50 pounds.

Here is a blurb from a website: During the last 30 years, the capture and study of free-ranging dogs in remote areas of South Carolina and Georgia has revealed the existence of dogs of primitive appearance fitting the typical long-term pariah (i.e, primitive/dingo) morphotype. They closely resemble types of dogs first encountered by Europeans near Indian settlements in the region as is evidenced by paintings, drawings and written descriptions made by these early explorers and settlers, and are thought to be a direct descendant of the ancient pariah dogs that accompanied Asians across the Bering Straits land bridge 8,000 years ago. Their closest genetic relative is the Australian Dingo.


He has some odd behavorial traits specific to the breed, but we love him anyway!




(Sorry to everyone else who is tired of reading about my dog -- I would have PM''d this to Gail if it had been possible to save you all from another Demon post!)

HI Dee Jay! NO WAY!!! We think our dog Angie may be a Carolina Dog too. That''s awesome! We do live in the Carolinas so that makes sense. Have you checked out carolinadogs.com and carolinadogs.org? I''d love to swap dog pics but this thread isn''t really the place to do it. I''ll check out your past posts for more Dino posts. Oh, and by the way I used to live in Chicago!! I miss PM...

 

[Dee Jay]

Gail -

I''ll start a thread in Diamond Hangout titled "Carolina Dogs" so we don''t bore the pants off of everyone else!

This is amazing -- I''ve never met anyone before who even knew what a Carolina Dog WAS!!!

DJ -

 

[widget]

Gosh, we''re jumping around here, aren''t we??

BrownEyes...thank you for your very helpful and informative answer!!!

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