When a family member passes away or transfers to a nursing home, loved ones are often faced with the task of deciding what to do with what’s left behind. While family heirlooms and beloved possessions may be spread among relatives, plenty of nice things (and many not-so-nice things) will need to be sold or donated. Whether it’s a collection of rare musical instruments, a couch with plenty of life left, or a pile of old records, the challenge is to figure out what’s worth selling — and how. It’s also important not to underestimate the emotional experience of going through a lifetime of belongings, much of which may have treasured memories attached.
If your relative has moved into a hospital or nursing home, it’s common to feel guilty about disposing of their beloved possessions. Add in grieving relatives and the burden of a death or loss of independence, and the process of dealing with a loved one’s belongings can become quite fraught. Fortunately, there’s plenty you can do to make the experience much less stressful for you and your family.
Make a list of treasured possessions that shouldn’t be sold or donated. For most families, a big priority is ensuring that Dad’s much-loved collection of cufflinks or Mom’s china isn’t accidentally given away or sold. Speak with your siblings and relatives and decide in advance what family treasures should be set aside.
Give relatives the chance to take keepsakes. If you are on good terms with relatives, you might be able to have a simple conversation about who gets what. Whether you choose to draw lots or simply give family members the opportunity to take what’s important to them, make sure that treasured mementos stay in the family.
Consider hiring an appraiser if you believe you have valuable antiques or art. If your loved one owned antiques or collected valuables, consider bringing in a reputable appraiser from an accredited professional association who will charge an hourly rate to go through the house and tell you if you have anything of worth. You might also look for price guides that can give you a ballpark estimate of the value of stamps, baseball cards, coins, furniture and other items.
If you choose to work with an estate liquidator, do your research. To make the process of selling easier, some families work with a company that handles the selling and donation process, typically charging a hefty fee in the process. One problem is that there’s no regulation of the industry and inexperienced sellers or outright frauds can cost you serious money. Before hiring a company, ask for references and referrals from friends. Do some Internet research to turn up any complaints and consider using a service such as Angie’s List to identify reputable firms.
Be rational about the worth of furniture and other items. Too many people have outsized expectations of the value of antique furniture, collectibles and other pieces. Remember, just because something was valuable when it was bought doesn’t mean that it’s valuable or collectible now. With many Baby Boomers and their parents downsizing, markets are saturated with antiques. If no one is interested in your items, it might be time to lower the price.
Have a yard sale and donate the rest. Often, if the estate doesn’t contain items of particular value or importance, a yard sale is the most efficient way to dispose of household goods. Create a Facebook page, post it on your local Craigslist site and place signs around the neighborhood to increase the traffic to your sale. If you’re not interested in holding a yard sale, consider donating everything to a local non-profit and taking the tax deduction. FBN
James D. Hoyt is a Certified Private Wealth Advisor, Certified Fund Specialist and the Founder/CEO of Ascendant Financial Solutions, Inc. JD and his wife, Kathy, enjoy community non-profit volunteering, golf, hiking, road biking and meeting new people. Both believe that “we are stronger as a community than as individuals.”
www.ascendant-financial.com
Securities and Advisory Services offered through Geneos Wealth Management, Inc. Member FINRA/SIPC. Advisory Services offered through Ascendant Financial Solutions.
By James D. Hoyt, CPWA, CFS
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