It was overwhelming for us. Of course, each family is unique, as is each individual.
In general, your kids will learn what is valuable to you by what they see. Could be a watch, maybe a beat up old chair.
They will decide themselves if it is important unless you tell them, either in notes or instructions. If it isn't written down or they've never heard you say why it's important to you, they won't know. Even then, what's important to you may still not be the same as what was important to you. Think of yourself and your parents, do you want all their possessions?
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