When "Stuff" Becomes a Planning Problem
Comedian George Carlin once joked that a house is just a place to keep your stuff while you go
out and get more. "Sometimes you gotta move, gotta get a bigger house," he said. "Why? No
room for your stuff anymore."1
Although humorous, Carlin's observation highlights a real issue that advisors encounter: Many
clients accumulate more belongings over time than they or their heirs can easily manage. What
seems manageable during a client's lifetime can become a source of stress, logistical
challenges, and financial consequences for heirs and fiduciaries after the client's death.
Excessive personal belongings can complicate estate administration, delay liquidation or
probate, and sometimes interfere with safe aging in place. Recognizing the potential impact of
accumulation early can help financial advisors guide clients toward solutions that protect both
their estate plan and their loved ones.
The "Great Wealth Transfer" Is Also a "Great Stuff Transfer"
Over the next few decades, an estimated $84 trillion in assets will change hands from the Silent
Generation and baby boomers to Gen X and millennial heirs.2 The "Great Wealth Transfer" is
poised to reshape the global economy through how that wealth is spent and invested.
But a more immediate and open-ended question is what happens to all the physical
possessions, the decades of accumulated stuff, that are transferred with that wealth.
As the "Great Stuff Transfer" gets underway, media outlets are describing the burden it can
place on family members.3 Baby boomers have very high homeownership rates4 and have
spent decades filling their homes with stuff: silverware, furniture, fine china, platters, baseball
cards, model trains, figurines, firearms, and trinkets from their travels.
As our homes have gotten bigger,5 so have the mounds of stuff in - and outside of - them:
Americans now rent more than 2 billion square feet of self-storage space.6
When someone downsizes or dies, their belongings must go somewhere. While their kids and
grandkids may not want the belongings, they may still be stuck sorting through them. Some
items may be worth something, but separating trash from treasure is not easy.
There are also hidden risks and costs buried beneath the piles: the financial and estate planning
fallout that an avalanche of excessive belongings can trigger.
Why Being "Stuff-Blind" Can Complicate Estate Administration
"Nose blindness" occurs when the brain becomes so accustomed to a constant scent that it
stops registering the odor.7 A similar phenomenon can happen with possessions. Over time,
people can develop "clutter blindness," gradually losing awareness of how much they have
accumulated.8
Accumulating items over time and struggling to let go of personal possessions is normal. But
when excessive belongings accumulate over a lifetime, they can become a blind spot in
financial, estate, and long-term care planning. Potential complications include the following:
- Missed or undiscovered assets. Valuable items such as jewelry, collectibles, cash, or
important financial records may be hidden among everyday belongings. Family
members or executors under time pressure may overlook items or mistake them for
nonessential clutter.
- Probate delays. Probate can take six to 12 months or longer, depending on the estate.
Decades of accumulated personal property can extend this timeline by weeks or months,
because sorting, cataloging, and distributing such property is often time-consuming.
- Valuation inaccuracies. Personal property is typically appraised based on its date-ofdeath
value. Disorganized homes make it difficult for appraisers to locate and identify
items, increasing the risk of incomplete inventories or inaccurate valuations.
- Higher administrative costs. Professional estate cleanout services can cost $500 to
$3,000, with heavily cluttered homes exceeding $6,000 depending on the size of the
property and volume of belongings.9 In larger estates, identifying and cataloging
personal property can add $2,000 to $10,000 in administrative costs, not including junk
removal, estate sale, or auctioneer fees.
- Real estate liquidation delays. Often, homes cannot be listed for sale until the contents
have been removed. Preparing a home for an estate sale typically takes two to four
weeks; heavily cluttered properties can require additional professional cleanout time.
Such delays can extend the selling timeline and increase carrying costs, including
utilities, insurance, and property taxes.
Extreme accumulation may also signal broader planning risks:
- Aging in place may no longer be safe. Most older adults want to age at home,10 but
their house must be able to safely accommodate them as they grow older. Severe clutter
can create fall hazards, block exits, and interfere with basic home maintenance. When a
home becomes unsafe, it may undermine plans to age in place and force families to
reconsider housing or long-term care arrangements.
- Potential changes in cognitive function. A growing inability to manage household
possessions may signal cognitive decline that could also affect financial management.
- Difficulty locating essential documents. Important records such as wills, trusts,
insurance policies, account statements, passwords, and other key documents may be
misplaced or buried among household belongings, complicating estate administration
and financial decisions after death.
While clients cannot take their belongings with them when they pass away, those items can
have real implications for their heirs and on the administration of their estates. Financial
advisors who recognize the potential challenges of accumulated personal property can help
clients plan proactively, minimizing delays, reducing administrative costs, and ensuring that both
assets and personal property are handled according to the client's wishes.
MEREDITH | PC
4325 Windsor Centre Trail
Suite 400
Flower Mound Texas 75028
214-513-1013
This newsletter is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional advisors to evaluate or pursue tax, accounting, financial, or legal planning strategies.
You have received this newsletter because I believe you will find its content valuable. Please feel free to Contact Me if you have any questions about this or any matters relating to estate planning.
