Tasting, pairing, appreciating, collecting; your individual level of interest may vary, but wine is ubiquitous. Whether you have a rack, cabinet, or cellar; those bottles have value, and they should be addressed in your Estate Plan.
Now you may ask, “do I really need to make some wine provision in my will or trust?” The answer is yes, but how extensive the provision really depends on what you want to happen to the wine.
Avid and serious collectors alike put time and effort into their bottles. If you want to ensure the same effort and care is taken by your executor or trustee, it makes sense to let him/her know how you would prefer for the collection to be treated.
Wine is considered personal property. Personal property is an afterthought in many Estate Plans, but that is a mistake. Personal property, especially in the eyes of children and other family members, can and often is the most coveted property because of its sentimental value. Wine is no exception, but some wine may also have monetary value too.
The most common convention is to leave all personal property to a spouse and then to children in the alternative. That may create many issues, where not everyone is married or has children. More direct to our discussion here though, what if your children aren’t wine drinkers? They may not value it at all, but your neighbors (who you may or may not have shared several bottles with over the years) would.
If the collection includes valuable bottles that need proper appraisal and valuation, it makes sense to include that on the personal property memorandum to ensure your executor will know.
Large collectors, cellar-types, may also have other considerations. If the cellar is built into your home, what will happen to the collection when the house is sold, rented, or donated to charity? Does the recipient of the collection have the facilities to store it? Does the recipient even like wine? As with any asset, as folks get older, they will often start gifting items to friends and family to alleviate the stress on an executor or trustee.
At Tresp Law, our Trusts all include language that allows for the client to create a personal property memorandum to address the distribution of personal property. This gives the client the flexibility to update their wishes as often as they like without the need to amend the Trust every time.
