It never ceases to amaze me how frequently our firm encounters outright bad advice offered by otherwise competent, well-meaning attorneys who simply lack experience in the estate planning arena. Nowhere is this more evident than in the creation of tangible personal property (TPP) lists—a topic that might sound mundane but lies at the heart of some of the most delicate, emotionally fraught aspects of estate transfers. 

Picture this: Mom passes away, and the personal representative is busy managing the estate. Assets are being liquidated, decisions are being made about timing and listing prices for real estate—the entire gamut of complex choices that must be addressed during this difficult time. 

And in the middle of all of that….the allocation of tangible personal property. 

Inevitably, there are certain material possessions that Mom (or Dad) uniquely cherished. Perhaps it’s a watch worn for decades, her prized paintings, the family coat of arms on display in the study, that sword from World War I that Great-Grandpa carried, or Dad’s treasure trove of firearms locked safely away in his secretive vault. These are precisely the items that most families include on a tangible personal property list. 

But here’s where things get interesting—and where inexperienced advisors often go astray. 

The Statute That Many Miss

You might be surprised at how many times we witness outright violations of Minnesota’s clear statute addressing this topic. As you will see—its language is remarkably clear: 

Minnesota Statute 524.2-513, titled ‘Separate writing identifying bequest of tangible property’ begins: “A will may refer to a written statement or list to dispose of items of tangible personal property not otherwise specifically disposed of by the will, other than money and coin collections…” 

This statute goes on to lay out specific core legal requirements for a valid TPP, but here we focus on just one critical element, an exclusion (no gold coins or bullion!). Those several core requirements include, for example, that the TPP list must either be signed by the testator or written in their handwriting, and that it must describe items and recipients with reasonable clarity. 

A TPP list that fails to meet the core statutory requirements can be entirely disregarded, leading to unintended consequences during estate distribution—such as cherished personal items ending up in the wrong hands. When a testator’s intentions are perceived one way but, due to a technical violation of the statute, the assets are instead distributed differently (such as under the Last Will and Testament’s residue clause), it can create significant discord, straining even the healthiest of family relationships. Long after the financial assets of an estate are spent, it is often these personal items that carry the deepest emotional weight—serving as enduring connections to a loved one, evoking memories of times and places long past. 

And for as clear as the foregoing passage reads, it’s amazing how frequently it gets misunderstood or misapplied. So, to be abundantly clear, the phrase “other than money and coin collections” is a deliberate exclusion and unequivocally stands for the rule that gold coins cannot be allocated via a tangible personal property (TPP) list. Rather, they default to the general estate assets unless otherwise addressed in the will or trust. 

Why the Confusion?

Part of the problem seems to be that gold coins ‘feel’ like tangible personal property. They don’t feel like money, and maybe they don’t even register as a “coin collection” in the traditional sense of rare or collectible coins. 

Just the other day, I was speaking with my neighbor who operates a pawnshop. He loves to buy and sell gold of all kinds, especially coins—be they American Eagles, Canadian Maple Leafs, South African Krugerrands, or even gold bullion. 

As a savvy businessperson and negotiator, he’s constantly probing his buyers and sellers to maximize his profit margin on transactions, typically aiming for a $100–200 margin per coin exchange. 

He readily confirmed my suspicion that the vast majority of people buying gold these days acquire it to hold, not to resell. It’s a place to store wealth with an almost guaranteed retention of value and minimal transaction costs. 

A person might hold a set of gold coins for 20 or 30 years, or even pass them down to the next generation. 

With increasing global instability and new rounds of trade wars, gold will only continue to be what it has been throughout the ages: a safe harbor for maintaining wealth. Indeed, your biggest risk factors with gold relate to its safe storage and retrieval, not with it losing value. 

So, while gold may not feel like “money” in the everyday sense, under the language of the statute, it is.  Those coins minted by the U.S. Treasury (American Gold Eagles), the Canadian Treasury (Maple Leafs), and the South African Mint (Krugerrands) are unmistakably “money” in the eyes of Minnesota’s TPP statute. 

Solutions for Your Precious Metals

So how can a testator make sure her cherished gold coin collection is distributed according to her wishes? This presents a particular challenge because gold coins are such a prominent vehicle of wealth transfer, all the more now that gold has broken $3,000 per ounce, and testators frequently want to devise them differently than the rest of their estate—perhaps giving one gold coin to each grandchild, for example. 

One option is gifting during your lifetime, which can be an effective mechanism (though annual gift tax exclusion limits should be considered). 

But as an old proverb wisely notes, “A wise man leaves an inheritance for his children and his grandchildren.” Gifting during one’s lifetime is one thing, but the sentiment and legacy associated with providing an inheritance in the traditional sense—once a person has “run their race”—is quite another. 

Since these gold coins cannot be included on the testators TPP list, depending on the exact circumstances we sometimes suggest a separate clause in your will or trust specifically dealing with gold coins and other precious metals. 

Beyond Gold: Other Special Collections

All that I’ve discussed about gold coins could equally apply to other valuable collections—say a prized firearm collection—which may come with very specific preferences for dispersal among loved ones. 

In a future post, I’ll discuss the advantages of creating a firearms trust (also known as a gun trust), which is not only effective for conveying inheritance when settling an estate but equally valuable during a person’s lifetime for managing their collection and even affording a layer of liability protection. 

Don’t Leave Your Legacy to Chance

Tangible personal property is often one of the most delicate, emotionally fraught aspects of estate transfers, carrying deep emotional weight for families. Whether it is a set of cherished spoons or vintage albums, proper planning with experienced counsel can make all the difference between your wishes being honored and your most treasured possessions becoming a source of family discord. 

Our firm specializes in navigating these nuanced areas of estate planning. With over 40 years of dedicated firm experience focused heavily in estate planning, we understand well both the legal requirements and the emotional significance of these decisions.

Let us help you protect your legacy—keep the dragons at bay and protect your gold, your firearms, and all your most cherished treasures.

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