Thanks to movies and television, many people believe that leaving a will that says, “I leave my entire estate to XYZ” (or simply writing something down on a bar napkin) counts as a valid will. Nothing could be further from the truth. In fact, the rules for wills and estate administration in Tennessee are very specific, and if you don’t follow them, your estate may be divided – or your will contested.
Tennessee recognizes two types of personal property: tangible, and intangible. Tangible personal property is anything you physically touch, like jewelry or heirlooms, or vehicles. Intangible personal property includes non-physical items, like stock options, patents, or retirement accounts.
One common misconception is that money is tangible personal property, when in fact, the opposite is true. Even though you can technically “touch” money, the courts have ruled that cash is an intangible asset. Note, however, that there are exceptions. A coin collection or gold bullion may be considered tangible (State v. Sanders, 923 SW 2d 540 – Tenn: Supreme Court 1996).
Though seemingly minor, this distinction can significantly impact asset distribution among beneficiaries after a person’s death. Inaccurate or vague language regarding tangible personal property in the will could result in confusion and even legal disputes. This is critically important because if you have a will that says “I leave all my tangible property to Beneficiary A,” then Beneficiary A is not getting any of your money.
What about real estate?
Real estate is different. Land and the objects attached to it (like horses or fences or even mineral rights) are considered real property, not personal property. As such, it must be designated separately in a will.
What about my business?
A business and its assets can be designated as real property, tangible personal property, or intangible personal property.
What are Tennessee’s probate laws and how do they affect my will?
Probate law governs the administration of a deceased person’s estate. When someone dies, the probate process begins, which involves a court or a named executor reviewing and validating the will, determining the value of the assets in the estate, paying off any debts or taxes owed, and ultimately distributing the remaining assets to the beneficiaries mentioned in the will.
Tennessee has its own set of probate laws that affect how wills are executed and assets are divided after an individual’s death.
Why should I hire a lawyer to write my will?
Creating a will is an important process that requires meticulous attention to detail. Self-authoring a will can be a costly mistake. Without a thorough understanding of legal terminology and probate law, individuals may make errors that lead to their will being contested in court.
Common examples of errors in DIY wills include:
- Not specifying which assets should go to which beneficiaries
- Leaving assets to pets
- Not creating a legally acceptable version of a will
- Failing to name an executor
- Including legally unenforceable demands
This may result in a lengthy and costly legal battle that depletes the estate and causes additional stress and hardship for loved ones. In some cases, the court may even invalidate the will, resulting in the assets being distributed according to state law rather than the individual’s wishes. In such a situation, that means Tennessee decides who receives the contents of your estate – and in many cases, that recipient will be the State itself.
Wagner Workers Compensation & Personal Injury Lawyers can help with probate litigation
In the event of a will contest, Wagner Workers Compensation & Personal Injury Lawyers can help. Our experienced probate litigation attorneys can sort through each claim and determine where assets should go to ensure the wishes of the deceased are met and carried out. We can also ensure that all outstanding debts are paid. Most importantly, we are here to ensure that an estate does not end up in the hands of the State, but in the hands of the beneficiaries and heirs.
We have years of experience assisting clients where a poorly written or worded will has left room for debate. We ensure that all Tennessee probate laws are followed, and can represent you if you have a claim against an estate. We also serve as executors for individuals and business owners with substantial assets and real property. We can assess the value and inventory of all personal and real property, assist with appraisals, and work to make the probate process as smooth as possible.
Wagner Workers Compensation & Personal Injury Lawyers has served the greater Chattanooga area since 1945. We are skilled and experienced probate litigators, and we are here to help. To schedule a consultation, please call or contact us today. Proudly serving Chattanooga, Cleveland, tN, and the surrounding areas.
Wagner Workers Compensation & Personal Injury Lawyers is one of the longest-established law firms in Chattanooga. With more than seven decades of proven legal experience, our law practice has steadily grown through repeat business, valuable referrals and a tradition of client satisfaction. Learn More
FAQs
Tangible personal property is anything you physically touch, like jewelry or heirlooms, or vehicles. Intangible personal property includes non-physical items, like stock options, patents, or retirement accounts. One common misconception is that money is tangible personal property, when in fact, the opposite is true.
Is money considered a tangible asset? ›
A misconception is that money because it has a physical form, is a tangible asset. Courts have decided that most monetary assets are intangible. A few exceptions exist for coin or currency collections, but in general, monetary assets are intangible items.
What is classified as tangible personal property? ›
Tangible personal property is mainly a tax term which is used to describe personal property that can be felt or touched, and can be physically relocated. For example: cars, furniture, jewelry, household goods and appliances, business equipment.
What is an example of something that is not considered tangible personal property? ›
Tangible personal property includes equipment, supplies, and any other property (including information technology systems) other than that is defined as an intangible property. It does not include copyrights, patents, and other intellectual property that is generated or developed (rather than acquired) under an award.
Is cash considered intangible personal property? ›
Intangible Personal Property includes, but are not limited to, accounts receivable, bonds, capitalized advertising costs, cash, contracts, copyrights, customer base, exploration permits and export permits, franchises, going concern, goodwill, leases, licenses, organization costs, patents, software, trademarks and trade ...
Which asset is not tangible? ›
Explanation: An intangible asset is a resource that isn't physical in nature. Brand acknowledgment, goodwill, and intellectual property rights like trademarks, patents, and copyrights, are all intangible assets.
Is a financial asset tangible? ›
Unlike land, property, commodities, or other tangible physical assets, financial assets do not necessarily have inherent physical worth or even a physical form. Rather, their value reflects factors of supply and demand in the marketplace in which they trade, as well as the degree of risk they carry.
What does the IRS consider personal tangible property? ›
Tangible personal property is a tax term describing personal property that can be felt or touched and physically relocated, such as furniture, office equipment, machinery, and livestock.
What are the different kinds of personal property which are not tangible? ›
Intangible personal property is anything with no obvious and assigned value and can't be physically held. Examples include copyrights, patents, intellectual property, investments, digital assets, along with anything that has image, social, or reputational capital.
What are 5 examples of intangible personal property? ›
Intangible Property is a property without a physical existence. Examples of intangible property include patents, patent applications, trade names, trademarks, service marks, copyrights, trade secrets.
“Intangible assets” are items that do not have a physical form. That includes things like patents and copyrights, an interest in a business, non-fungible tokens (NFT) and other digital assets, and also bank accounts, stocks and bonds, retirement plans, and life insurance policies.
Which is not considered as tangible? ›
An intangible asset is a non-monetary asset that cannot be seen or touched. “Patents or goodwill are good examples,” says Florence Bessette, Business Advisor, BDC Advisory Services. Tangible assets are physical things. Examples include land, buildings, vehicles, furniture, and equipment.
Which of the following items is tangible personal property? ›
Tangible Personal Property includes all furniture, fixtures, tools, machinery, equipment, signs, leasehold improvements, leased equipment, supplies and any other equipment that may be used as part of the ordinary course of business or included inside a rental property.
Is money considered tangible? ›
Intangible personal property includes non-physical items, like stock options, patents, or retirement accounts. One common misconception is that money is tangible personal property, when in fact, the opposite is true. Even though you can technically “touch” money, the courts have ruled that cash is an intangible asset.
Why is cash not a tangible asset? ›
Cash can be either intangible or tangible personal property depending on its nature. What we usually think of as “cash,” namely typical money used in day-to-day economic transactions, has negligible intrinsic value (ie, the value of its paper or metal), so such “cash” is intangible PP. Its value is its face value.
Is cash considered a personal asset? ›
Personal assets are things of present or future value owned by an individual or household. Common examples of personal assets include: Cash and cash equivalents, certificates of deposit, checking, savings, and money market accounts, physical cash, and Treasury bills.
What type of asset is money? ›
Current Assets
Current assets are assets that can be easily converted into cash and cash equivalents (typically within a year). Current assets are also termed liquid assets and examples of such are: Cash.
Does money count as an asset? ›
If you're calculating your net worth, you should tally your assets first. Include any money you have in the bank as well as the value of your investments. Include your property value and the worth of your car if you were to sell it, along with any monthly payments you might receive from a pension or retirement plan.
Is money tangible wealth? ›
If you can buy and sell something, then it has a tangible value (meaning “can be obtained”). Tangible wealth includes things like cash, bank deposits, property, stocks, and bonds.
Is currency tangible or intangible? ›
The terms money and currency are often thought to mean the same thing. However, while related, they have different meanings. Money is a broader term that refers to an intangible system of value that makes the exchange of goods and services possible, now and in the future. Currency is simply one tangible form of money.
Thanks to movies and television, many people believe that leaving a will that says, “I leave my entire estate to XYZ” (or simply writing something down on a bar napkin) counts as a valid will. Nothing could be further from the truth. In fact, the rules for wills and estate administration in Tennessee are very specific, and if you don’t follow them, your estate may be divided – or your will contested.
