When settling an estate, you'll need to decide what to do with a lifetime of belongings. Here's a clear framework for choosing between estate sales, donations, and disposal.
Taking Stock First: The Estate Inventory
Before making any decisions about individual items, complete a full inventory of the home's contents. This protects you legally, helps identify items with significant value that should be appraised, and provides a clear picture of the scope of the task.
When an Estate Sale Makes Sense
Estate sales are best for homes with a large volume of quality items. A professional estate sale company handles pricing, advertising, and the sale itself for a commission of 25–40% of gross proceeds. They're best when the effort of DIY selling outweighs the cost.
Donating Items
Furniture, clothing, kitchen items, and books in good condition can be donated to Goodwill, Salvation Army, Habitat for Humanity ReStore, or local charities. Many organizations offer free pickup for furniture and large items. Keep receipts for charitable deductions.
Tax Implications of Donations
Charitable donations from an estate can generate a deduction on the estate's income tax return (Form 1041). Document donated items with photographs, a description, and the receiving organization's receipt.
