In the Case Study below if the man had properly communicated with his son about
what to expect on his passing it is more likely the stamp collection would have
been saved. Gifting the stamp collection
as a specific gift would have brought the asset to the son’s attention, but
communication is the key underlying message in this Case Study.
Estate Planning for Hobbyists and Collectors – $150,000 thrown away!
In your Will it is possible to gift specific property, known as a specific legacy, or an amount or proportion from your estate, known as a general legacy. Yes, it’s a fairly basic concept, but basic things can be put to important use. The Sydney Morning Herald has reported on a case in which a $150,000 stamp collection was thrown away along with the significantly less valuable contents of a bookshelf on which it was stored. Well meaning relatives were cleaning out the house of the recently deceased owner of the stamps, as a favour to his son, they had no idea they were offsetting their good deed to the tune of $150,000.
Had the stamp collection been a specific legacy in the deceased man’s Will, it is significantly less likely that such an expensive mistake would have been made. Had the deceased told his well meaning relatives/beneficiaries about the very valuable stamp collection this situation may have been avoided.
Good Estate Planning should be directed to achieving the best possible outcome for the people you love, by any means available. If you have something with significant, but not obvious, value it ought to be included in your Will as a specific legacy.
Gavin Parsons and Associates can assist you with any questions you have regarding Estate Planning. Please contact us today on (02) 9262 4471.