Handling Personal Property in an Estate: A Practical Guide for Trustees and Executors

When people think about an estate, they often focus on bank accounts and real estate. Yet the objects that fill a home—furniture, cars, jewelry, art, family heirlooms, photographs and even digital files—often carry the most emotional weight and potential for conflict. Personal property encompasses tangible items without titles (such as furniture, clothing, collections), titled items (vehicles and boats) and intangible assets like stocks, bonds, royalties and insurance policies. These items may be worth modest sums or millions of dollars. They may also be priceless to heirs who remember the stories attached to them.

For trustees and executors (collectively called fiduciaries), handling personal property is a core responsibility. A misstep—such as distributing valuable artwork without an appraisal or ignoring instructions in a will—can result in tax penalties, lawsuits or family discord. This guide explains how to inventory, value, protect and distribute personal property within an estate, drawing on current guidance and best practices in 2025.

Step One: Take Control of the Assets

Marshal and Secure the Property

A fiduciary must take control of all assets as soon as possible after assuming office. This duty, often called “marshalling the estate,” includes securing the home, changing locks if needed, and ensuring that personal property is not removed before it is inventoried. The American Bar Association (ABA) notes that when a fiduciary assumes office at death, it is crucial to secure and value all assets quickly. Household furniture, automobiles, jewelry, artwork and collectibles should be locked up or monitored to prevent loss or theft.

Maintain Insurance

The ABA guidelines emphasize that an appraisal helps gauge whether the decedent’s insurance coverage is sufficient, and that appropriate insurance should be maintained throughout the fiduciary’s tenure. Personal property often remains in the home for months or even years during the estate’s administration. Trustees and executors should contact the decedent’s insurance agent to confirm coverage for contents and consider increasing limits or adding a rider for high‑value items. The personal representative’s duty to preserve assets extends to securing adequate insurance for household furniture, furnishings and collectibles.

Inventory and Valuation: Establishing What Exists and What It’s Worth

Create a Detailed Inventory

An accurate inventory is the cornerstone of proper personal property administration. In Missouri, personal property includes movable items ranging from furniture and pets to titled assets like cars and boats. Intangible personal property encompasses stocks, bonds, bank accounts and other non‑physical assets. Executors should list each item, describe it in detail and note its location. Photographs and videos can help document condition and authenticity. The inventory should also identify who currently has possession of each item; retrieving property from heirs before distribution may be necessary, as a personal representative has the right to take possession of property when reasonably necessary for administration.

Hire Professional Appraisers

Many items have sentimental value but uncertain market value. The ABA recommends engaging a professional appraiser to value the decedent’s tangible property, including household furniture, automobiles, jewelry, artwork and collectibles. Specialist appraisers may be required when the decedent owned rare or unusual items, such as antiques or a significant art collection. Accurate valuations are critical for estate tax returns, inventory filings, and equitable distribution among beneficiaries.

Appraisals also help determine whether the estate’s insurance coverage is sufficient and can reduce disputes among heirs. If the estate does not owe federal estate tax, the IRS permits certain estimates to reduce appraisal costs, but estimates should still be reasonable and documented.

Keep Detailed Records

Fiduciaries must maintain meticulous records of all assets, valuations and receipts. This includes recording when and how each item was appraised, where it is stored, and any changes in condition or value. Courts and beneficiaries may require an accounting, and the fiduciary may be personally liable if records are missing. Good documentation protects the fiduciary against allegations of mismanagement.

Protecting Personal Property

Preserve the Assets

The personal representative has a duty to preserve and protect the assets of the estate. This includes maintaining household furniture, collectibles and other property in safe storage. If the decedent’s home is left vacant, fiduciaries should consider measures such as climate control, burglar alarms, periodic inspections and insurance to guard against theft, damage or decay. When beneficiaries want to borrow items before distribution, consider a signed agreement acknowledging that the property remains part of the estate and must be returned upon request.

Review Insurance Coverage

In addition to obtaining appraisals, fiduciaries should review and update insurance coverage. Standard homeowner’s policies may have low limits for jewelry or fine art. Riders or specialty policies may be needed to cover these items fully. The Maryland estate administration guidelines warn that contacting the decedent’s insurance agent and reviewing all coverage is critical to protecting estate assets. Failing to maintain coverage could expose the fiduciary to personal liability if property is damaged or lost.

Protect Digital Assets and Intangibles

Personal property is not limited to physical items. Stocks, bonds, patents, royalties and bank accounts are also considered personal property. Trustees and executors must identify and secure digital account credentials, passwords and recovery keys. Laws such as the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) allow fiduciaries to access online accounts only if specifically authorized in the estate documents. The fiduciary should consult legal counsel to ensure compliance with privacy laws and terms of service.

Distributing Personal Property: Following Instructions and Preventing Disputes

Respect the Decedent’s Wishes

The starting point for distribution is the decedent’s will or trust. A valid will may list specific items to be given to certain individuals (e.g., “I give my grandfather clock to my granddaughter, Nina”). It may also incorporate a separate memorandum listing personal property distributions. A personal representative must follow these instructions and can only distribute assets after debts, taxes and expenses are paid. Distributing property too early or ignoring creditor claims can expose the fiduciary to liability. When the decedent did not leave a will, state intestacy laws determine who inherits personal property.

Be Fair and Transparent

Personal property often causes disputes because its value is subjective. Items with modest monetary worth may carry immense sentimental weight. Clear and fair division of personal property prevents conflicts and honors the deceased’s wishes. Beneficiaries should feel that the process is transparent; they should know how appraisals were obtained and how values were assigned. Written receipts and refunding agreements help track distributions and ensure heirs understand that distributions may be adjusted if estate expenses exceed expectations.

Methods of Division

While trusts and wills may specify a method of division, fiduciaries often need to devise a fair system when no instructions are given. Common approaches include:

• Rotational selection: Beneficiaries take turns choosing items in a predetermined order. This system allows each person to select items important to them and promotes fairness. A random draw can determine the picking order.

• Auction or sale: Items are sold, and the proceeds are divided equally. This is often used when items have high monetary value or when heirs cannot agree. The auction can be conducted privately among family members or by a professional auction house.

• Appraised value balancing: If one beneficiary receives property of higher value, they may compensate the other beneficiaries with cash or other property. Appraisals provide an objective basis for balancing distributions.

No system is perfect, and disputes can still arise. The fiduciary should remain neutral and document all decisions.

Use Professionals When Needed

If tensions run high or the estate holds valuable items (such as art or antiques), engaging a professional mediator or attorney can help negotiate an amicable division. Appraisers, auction houses and estate sale companies can manage sales and relieve the fiduciary of administrative burdens. The ABA encourages fiduciaries to seek professional advice when they lack the expertise to manage certain assets. This is especially important for unique collections, classic cars, or intellectual property. Professional fees are usually paid from estate funds.

Tax Considerations and Reporting

Estate and Inheritance Taxes

Appraised values of personal property feed into the estate’s tax calculations. A personal representative must arrange appraisals to pay inheritance and estate taxes. Federal estate tax returns must be filed if the estate exceeds the exemption amount (which will be $15 million per individual or $30 million per married couple in 2026). Some states levy inheritance or estate taxes at lower thresholds.

Even if no federal estate tax is due, filing may be necessary to preserve a surviving spouse’s ability to “port” unused exemption to their estate, a process called portability. Executors and trustees should consult tax advisors to determine whether the estate needs to file federal or state returns.

Income Tax Implications

Estate or trust income tax returns must be filed annually using a separate taxpayer identification number. Distributions of personal property typically do not trigger income taxes, but sales of property may generate capital gains or losses. Intangible personal property (stocks, bonds) may produce dividends or interest that is taxable to either the estate, trust or beneficiaries depending on the timing of distribution. Coordinating with accountants ensures that tax obligations are met and that any available deductions (such as appraisal fees and insurance premiums) are claimed.

Resolving Conflicts: Communication and Documentation Are Key

Anticipate and Address Disagreements

Disputes over personal property are common because items often carry sentimental attachments. A mismatch between the estate documents and family expectations can lead to litigation. To minimize disputes:

• Inform beneficiaries early. Explain the fiduciary’s role and the steps that will be taken to inventory and distribute property. If the decedent prepared a memorandum or expressed wishes informally, share this information as guidance.

• Encourage input. Allow heirs to express preferences and request particular items before the division begins. A transparent process fosters cooperation.

• Document everything. Keep written records of all communications, appraisals, valuations and distributions. If the fiduciary is challenged, thorough documentation will demonstrate that decisions were made fairly and in accordance with the will or trust.

Seek Court Guidance When Necessary

Occasionally, the fiduciary may need court approval to distribute personal property, particularly if disputes are irreconcilable or the will is ambiguous. Courts can issue orders approving appraisal methods, distribution schemes or sales, thereby protecting the fiduciary from liability. Obtaining a court order may delay administration but can provide clarity and prevent litigation later.

Conclusion: A Thoughtful Approach Protects Both Assets and Relationships

Personal property is often the most personal part of an estate. It encompasses everything from everyday household items to treasured heirlooms and intangible assets like securities and digital content. For trustees and executors, managing this property requires diligence, transparency and compassion. Key takeaways include:

• Secure and inventory all property promptly. Create a detailed catalog and engage qualified appraisers to establish value.

• Maintain insurance and protect assets. Preserve household goods and collectibles, and review insurance coverage to avoid gaps.

• Follow the will or trust and ensure fairness. Respect the decedent’s instructions and adopt equitable distribution methods to minimize conflict.

• Consult professionals. Attorneys, appraisers, auctioneers and tax advisors provide expertise that protects the fiduciary and beneficiaries.

• Communicate and document. Open dialogue with beneficiaries and meticulous record keeping reduce misunderstandings and demonstrate prudent administration.

By approaching personal property with the same care given to financial assets, trustees and executors can honor the decedent’s legacy, uphold their fiduciary duties, and support harmonious transitions for the family.