Legal Definitions - scheduled property

Scheduled property refers to specific items of value that are individually listed and described within a legal document, such as an insurance policy, a will, or a loan agreement. This individual listing ensures these particular items receive special attention, coverage, or treatment, often because of their unique value, nature, or importance, distinguishing them from general categories of property.

Here are some examples to illustrate this concept:

• Example 1: Insurance Coverage

  Imagine a person owns a valuable collection of rare stamps and a custom-made engagement ring. While their standard homeowner's insurance policy might cover general personal belongings up to a certain limit, it might not fully protect these high-value items against all risks or for their full appraised worth. To ensure comprehensive coverage, the owner would typically have these specific items "scheduled" on their policy. This means the insurance company receives a detailed description and an appraised value for each individual stamp collection and the ring, providing them with tailored protection beyond the general policy limits.

  This illustrates scheduled property because the rare stamp collection and the engagement ring are individually itemized and specifically covered in the insurance policy, rather than being lumped into a general "personal property" category.

• Example 2: Estate Planning

  Consider an individual creating their will. They might want to ensure that a specific antique grandfather clock, which has been in their family for generations, goes directly to their eldest grandchild, and a particular painting by a local artist is donated to a community museum. Instead of simply stating that their "personal property" should be divided among heirs, they would create a schedule within the will. This schedule would explicitly list the grandfather clock and the painting, detailing who should receive each specific item.

  Here, the antique grandfather clock and the specific painting are "scheduled property" because they are individually identified and assigned specific beneficiaries or recipients in the will, rather than being part of the general estate to be divided at the executor's discretion.

• Example 3: Business Loan Collateral

  A small manufacturing company needs a loan to expand its operations. As part of the loan agreement, the bank requires collateral. Instead of taking a general lien on all business assets, the bank might ask the company to "schedule" specific pieces of high-value machinery, such as a particular industrial laser cutter and a robotic welding arm. The loan agreement would then include a detailed list of these machines, complete with serial numbers and descriptions, explicitly identifying them as the assets securing the loan.

  These specific machines are "scheduled property" because they are individually itemized in the loan agreement to serve as security for the debt, distinguishing them from other general business assets that might not be pledged as collateral.