Updated 23 October 2026
Wills - Potential Problem #19: Leaving Out Personal Property
Personal belongings can be among the most difficult assets to distribute after a death. Jewellery, watches, furniture, artwork and collections may have a resale value, a family history and several relatives who want them. Those are separate considerations, and confusing them can turn an ordinary estate administration into a dispute.
A sensible approach is to establish ownership, record a defensible monetary value and then address each beneficiary’s entitlement and preferences. Valuing an heirloom does not diminish its emotional importance. It gives everyone a clearer financial starting point. This guide focuses on personal property valuation in NSW deceased estates; our separate family heirlooms and jewellery guide explains how to name the intended recipients in your will.
1. Market value and sentimental value answer different questions
Market value concerns what an item could reasonably sell for in the relevant market. Sentimental value concerns what it means to a particular person. A grandmother’s handwritten recipe book may attract little interest from buyers but be irreplaceable to her grandchildren. A watch that nobody in the family wants may nevertheless have substantial collector value.
Record both considerations separately. The financial record should identify the valuation basis and supporting evidence. A separate note can record the item’s history and who would like to keep it. A relative’s strong attachment does not establish a higher market price or an automatic legal entitlement.
Equally, a low valuation is no reason to discard an item before consulting the executor and checking the will. Photographs, letters and inexpensive keepsakes can matter deeply. Valuation helps families understand the financial consequences of their decisions while leaving room to discuss those personal connections.
2. Prepare an inventory before anyone clears the house
The NSW Government’s executor guide identifies protecting valuables and listing household and personal goods as executor responsibilities. Begin before relatives remove belongings, a home is cleared or items are donated. Photograph important pieces, record their location and note who currently holds them.
A useful inventory records an item number, description, condition, ownership, estimated value, valuation date and proposed destination. For jewellery or watches, include engravings, serial numbers and any available certificates. Keep receipts, photographs, appraisals and sale records together so another person can follow how the figure was reached.
Check ownership before adding something to the estate. A painting hanging in the deceased’s home might be borrowed; furniture may belong to a company or another family member. Record competing ownership claims and investigate them. Possession alone does not settle ownership, and a valuation cannot resolve that legal question.
3. Choose the right valuation and date
For the NSW probate inventory, the relevant starting point is the asset’s market or resale value at the date of death, as explained in the judgment below. A later sale or distribution may require updated information. Keep the dates distinct rather than silently replacing one figure with another.
Insurance replacement value answers a different question: what it would take to replace the item under the relevant insurance basis. It may differ substantially from the price achievable for an existing second-hand item. The Jewellers Association of Australia distinguishes insurance, deceased-estate, auction and other valuation purposes. An old insurance certificate should not automatically become the estate’s resale valuation.
Use a proportionate approach. Ordinary used household goods may be supported by reasonable estimates and comparable sales. Rare, valuable or disputed jewellery, artworks and collections warrant specialist assessment. There is no need to assume that every kitchen utensil requires its own formal report. Ask the estate solicitor what evidence is appropriate for the particular assets and dispute.
Give the valuer a clear brief identifying the items, valuation purpose and relevant date. The National Council of Jewellery Valuers explains that a valuation report identifies its purpose and intended market. Check the valuer’s relevant expertise and any interest in buying the items. A purchase offer from a dealer is not necessarily an independent appraisal.
4. A real NSW case about insurance and resale values
In Crawford v Munden; In the Estate of Angel (2020), a family provision dispute included disagreement about household contents and jewellery. The deceased’s son relied on insurance figures substantially higher than the values disclosed by the executors.
The Supreme Court rejected that approach. At paragraphs 130–133, it distinguished replacement value from resale value and confirmed the date-of-death market-value basis for the estate inventory. A higher insurance figure did not itself establish additional money available for distribution.
The practical lesson is to compare valuations prepared for the same purpose. Two different figures do not, by themselves, prove that an executor has concealed value. First check the valuation date, market and assumptions. This was one issue within a broader family provision case, rather than a ruling about which relative should inherit a particular heirloom.
5. Use the valuation without rewriting the will
As Legal Aid NSW explains, personal belongings can pass through specific gifts, a gift of the whole estate or the residue. An item omitted from an individual gift may still be covered by the will. If no provision disposes of it, intestacy rules may apply to that part of the estate.
A valuation does not authorise an executor to override a specific gift because somebody else wanted the item or received less valuable belongings. Where beneficiaries share the residue, an agreed allocation of items may be possible, subject to the will, administration requirements and appropriate legal documentation.
For illustration only, suppose two adult beneficiaries are entitled equally to a watch and bracelet together valued at $8,000. The watch is valued at $6,000 and the bracelet at $2,000. If one takes each item, an agreed $2,000 balancing payment from the watch recipient to the bracelet recipient would leave each with $4,000 in net value. That arrangement needs the necessary authority and agreement; it is not a compulsory formula for all estates.
6. Resolve disagreement before distribution
Share the relevant descriptions and valuation evidence with the affected beneficiaries. If someone disputes an appraisal, ask what specifically is wrong: authenticity, condition, comparable sales, the valuation date or the market used. Where justified, a jointly instructed independent expert can provide a common basis for discussion.
If the real disagreement is about who keeps the object, commissioning more valuations may not solve it. Discuss lawful alternatives such as allocating other items, agreed cash adjustments or preserving copies of photographs and documents. Mediation may help where relatives cannot reach agreement. Selling an item is not automatically the only option.
Keep disputed property secure while obtaining advice. Account for estate debts, expenses and claims before distribution, and document transfers with receipts. Extra safeguards may be needed where a beneficiary is a child or lacks decision-making capacity. An executor who wants an item personally must also address the conflict of interest; setting their own price is not an adequate safeguard.
7. Make the eventual administration easier
During your lifetime, maintain an inventory and tell your executor where it is kept. Update it when important belongings are acquired, sold or given away. Record provenance and family stories while someone can explain them. These records can assist identification and valuation without making every keepsake a dispute about money.
Ask your solicitor to coordinate specific gifts with the residue and any substitute beneficiaries. A separate list of wishes does not automatically amend the will; changes must meet the applicable legal requirements. Legal Aid NSW’s will guidance explains updating a will through a new will or codicil.
CM Lawyers assists families in Marrickville, Sydney’s Inner West and across NSW with wills and estates and estate administration. Contact our team to review how personal belongings are identified, valued and distributed. This article provides general information; advice should address the will, ownership records and circumstances of the particular estate.
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