Why value is not always measurable in dollars in an estate plan

One way that many people think about their estate plans is in terms of dollars. Let’s say they have two children, and they want to treat each of them equally when they die. They may add up the different assets they own to ascertain the overall value. Then they find a way to divide that into two as best they can. 

This certainly sounds like a fair way to do things; however, what parents sometimes forget is that some things are not measurable in dollars, at least not as far as their kids are concerned. 

Sentimental value can outweigh financial value

A child who has happy memories of summers at Grandma’s house by the lake may dearly hope their parent, who inherited it, leaves it to them, not their sibling. Even if the house is only worth $150,000, they might prefer it to the same amount in cash.

Another example is Mom’s engagement ring. Two sisters might both recall how amazing that ring used to look on her finger. They may both have secretly tried it on the rare occasions she took it off. And now that Mom is getting older, they may both be hoping she will leave it to them. She might even have promised it to both of them at different times, which means one daughter is bound to be disappointed, even if she gets something of an equivalent financial value instead.

It can be difficult for parents to know the emotional worth that their children attach to particular things. It’s one of the reasons why having a chat with your family about your estate plan is often a good idea. As is getting legal help to draw one up.