Inheriting A House Full of Belongings: Where to Start (And What to Avoid)

The Emotional and Practical Reality

It is a sad fact of life that many of us will have to face sooner or later. Mom and Dad will both eventually pass away or move into a senior living facility or there will otherwise be some major life change one consequence of which will be that a household full of belongings will need to be emptied. This is undoubtedly a circumstance that frequently brings with it stress as well as grief. There is often guilt over decisions made or not made, general anxiety about the whole process, and a feeling of pressure to just "get it done."

The Most Common First Mistake: Acting Too Quickly

It is this pressure that can lead to problems. Rushing to clean out, donate, or sell often leads to regret in the end. Even for items that may not have much market value, there can be substantial sentimental value. Often, this sentimental attachment has not been clearly expressed. We should take time to allow for family members, family friends, or other heirs to have a chance to share their feelings especially as to any belongings that may not be specifically mentioned in a will.

Step One: Pause and Take Inventory (Not Action)

This need not take a long time. But pausing to really assess what is present can be helpful. Closets and dresser drawers can sometime yield up items that were long forgotten or perhaps even unknown to family members. Developing a written inventory can be helpful when considering how to proceed, especially if there are family members or other interested parties who do not live nearby. The process of creating a written inventory may lead to important questions and discussions that can uncover information about various items that can be critical when it come time to arrive at a possible market valuation.

Step Two: Identify What Actually Needs Professional Input

There are a few instances when an appraisal may actually be required when dealing with inherited belongings. In Pennsylvania, an inheritance tax is due on all tangible property, including but not limited to automobiles, furniture, antiques, and jewelry. You may or may not need a written appraisal when figuring the tax due, but it certainly can help ensure an accurate final result. Other states also have inheritance taxes. It is rare that the federal estate tax would apply as the threshold is quite high. (Only estates worth more than $15 million are taxed for individuals and $30 million for married couples.)

In the unfortunate case where there are disputes among heirs, an appraisal can help by providing a neutral, independent valuation, which can often help resolve differences.

If any items potentially worth more than $5,000 are to be donated, an appraisal is required. An appraisal may also be required if items not in good condition are to be valued at more than $500.

Step Three: Choose the Right Path for Items

Once you have a better idea of what you have, you can start a triage process. There are five potential categories here: keep, donate, consign, private sale, and/or auction / estate sale. By identifying what will be kept, you can eliminate them from the list of things to dispose of. The other choices will be made taking into account your time frame, how much you want to hand off to others versus tackle yourself, how much value the item has, and perhaps your personal preferences or needs in terms of making charitable donations versus capturing the monetary value of the items involved. Some categories (like consignment) may not be feasible depending on what is available in your community. You may need professional help at this stage and this can be provided by a variety of sources: professional downsizer, estate sale business, or perhaps even an auctioneer.

What a Qualified Appraiser Contributes at This Stage

An appraiser is neutral, objective, and focused on helping you making informed decisions. While all appraisers can help with providing reliable information about the market value of your items, some can also provide assistance in selling your items, either through an estate sale or consignment or perhaps even outright purchase.

A Calmer Way Forward

Clarity reduces stress. Often, no immediate decisions are required and it can be worth it to take the time to slow down and assess your situation in order to gain that clarity about how to proceed.

“If you are managing an estate or downsizing and are unsure where to begin, an independent appraisal can provide clarity before irreversible decisions are made.”