by Ryan Conklin

Farmers are big fans of their “toys.” Toys can take on various forms.

Popular examples for farmers and spouses include restored equipment, toy tractor collections, jewelry, firearms, boats or snow equipment, classic cars, sewing or quilting materials, artwork, family heirlooms, special tools, sports paraphernalia, branded items for a specific company, or any hobby-related items.

Toys hold a special place in estate planning. In the past, folks have placed Post-it notes, drafted handwritten lists, or told people of their wishes as methods to transfer toys. Without the proper tools in place, this property can end up in probate court or the subject of a family dispute.

To start, distinguishing between titled and non-titled assets is key. Titled assets would include cars, boats or other items where you can easily show proof of ownership. All other items likely qualify as non-titled, where a person is the likely owner, but proof of ownership is more elusive.

If you are looking to pass titled toys, take steps to avoid probate. This may include visiting the motor vehicle registration agency to designate a transfer on death beneficiary for a boat or vehicle. If you have other non-vehicular titled assets, the company or organization of registration can be contacted for probate avoidance instructions.

Next, your estate plan documents should address your toys. Although writing specific gifts into a will or trust can work, accounting for all the toys in a lawyer-prepared document can be cumbersome and expensive. Not to mention, changing those gifts may require a document update, incurring further expense.

Instead, your attorney might prepare a special memorandum to distribute the toys. This memorandum would allow you to write out the items and the recipients. The memo could be easily changed without an attorney, and allow you to complete the task at your own pace. Making sure the will or trust and memorandum cross-reference each other, and that they are found together at death, are key here.

Alternatively, instead of addressing the distribution of those items at death, you might consider gifting toys before passing away. Some farmers want to see family or friends enjoy the toys while living, or want to eliminate family fighting at death.

Firearms may have special rules around transfer. Some guns may be subject to certain regulations, for which a gun trust might be an option for your plan.

Although the toys in a succession plan may not compare with the monetary value of land or cash, they nonetheless can carry great importance. Family members or friends end up fighting over the ownership of personal property all the time, and those conflicts can be easily avoided. Work with your legal counsel to formulate the best solution for you.

Conklin is lead attorney with Wright and Moore, Farm Succession & Legacy Preservation out of Delaware, Ohio. Contact him at [email protected] or 740-990-0755; visit ohiofarmlaw.com.