MSU Extension: Is Your Inventory Up to Date for Estate Planning Purposes?

Is your home inventory up to date for estate planning purposes? “I remember when I made my first list; it seemed to take forever” said Marsha Goetting MSU Extension Family Economics Specialist. “But just in case the rental house burned down, or a tornado struck (living in Kansas at the time) we would have a record of what we owned for insurance purposes.”

“Looking back, because we were just starting out the list was short compared to now. Thank goodness making a household inventory for insurance and estate planning purposes today is much easier with the tech tools many of us have at our fingertips,” says Goetting.

“Do you have home video equipment or does your camera take videos? If yes, you can use either one to videotape the inside of your entire home. You will be able to show everything to prove what’s in your house,” said Kaleena Miller, MSU Extension Madison-Jefferson County Agent. The best way to record is to start at one end and work to the other end.

Speak to the camera while you video and explain everything you are looking at. That way the insurance company will know what you are talking about if you need to make a claim. Your beneficiaries will also know what items are considered tangible personal property that can be included as a separate list to be with your will. Be sure to include the garage and any other buildings on your property that are listed in your homeowner’s policy.

Nowadays most people have a camera on their cell phones. If not, they may have a point-and-shoot or a digital SLR camera. When you document your possessions for insurance purposes, photos can work well. You’ll need to take clear pictures of everything you want to be covered under the insurance policy. When you print the photos, document where the item is in your home and explain what it is if that’s not obvious from the photo.

“I had one woman who showed me her notebook of photos during one of my estate planning meetings,” shared Goetting. “She had a photo of each item, a history of the memento, and the name of the beneficiary she wanted to receive it. She was well organized and I was so impressed with her notebook.”

If you don’t want to use the aforementioned tools, you can make a home inventory list. Start by writing down everything you want to be insured. Describe where the item is in your home and explain what it is. Include serial numbers and model numbers if applicable. You may wish to get a professional appraisal for jewelry, artwork, antiques, memorabilia, and other one-of-a-kind or hard-to-replace valuables.

“Your home inventory records will not do you any good if they are in your house and they are stolen, burned, damaged by floodwaters, or otherwise destroyed. If you have a fireproof safe, keep a copy of your documentation in there for safekeeping. Consider giving a copy of your inventory list to your insurance agent to store with your records,” suggested Miller.

You may also want to store a copy of your list, video, and pictures in your safe deposit box. Another alternative is to upload the video, photos, or list to an online file storage company like DropBox, Google Drive, Apple iCloud, or Microsoft OneDrive.

You never know when something terrible may happen to your home, so it’s better to be protected. And you never know when you might die. The suggestions above will help you learn how to document your possessions for insurance purposes and estate planning purposes, so your items will be protected if something happens.

This information will also give insight into how much homeowners’ insurance you should buy, make it easier and quicker to settle a homeowners insurance claim and make it easier to prove any losses for tax reasons. The information will also help your personal representative know what item to give to whom.

More information can be found in the MontGuide “Who Gets Grandma’s Yellow Pie Plate.” The fact sheet is also available at the MSU Extension Madison- Jefferson County Office. Call 406-287-3282 or download here https://store.msuextension.org/publications/FamilyFinancialManagement/MT199701HR.pdf.