Estate planning is an important process for anyone who owns any assets, no matter their size or value. Planning your estate means designating who will receive your assets upon your death or if you are unable to make those decisions due to incapacitation. Deciding who will handle the responsibilities of your estate helps ensure your wishes are followed. When considering who will receive your assets, it’s important to identify those assets and estimate their value. We list what tangible and intangible assets to consider when planning your estate.
Tangible assets are physical possessions that you own. These include:
- Homes, land, or other property
- Collectibles such as coins or trading cards
- Any other personal possessions such as furniture, clothing, etc.
Intangible assets are not physical items but are assets such as financial accounts. These may include:
- Checking and savings accounts
- Retirement accounts such as a 401(k) or individual retirement accounts (IRA)
- Stocks, bonds, and mutual funds
- Life insurance policies
- Ownership in a business
- Health savings accounts
Estimating asset value
Once you’ve identified your assets, you need to estimate their value. Recent appraisals of your real estate and financial statements of your accounts can be beneficial outside valuations to help with estate planning. For items without these valuations, do your best to estimate their value or how your heirs will value them so that you know how to divide your assets.
Debts and judgments
When planning your estate, also keep track of any uncollected debts or judgments that you may have. If you’ve loaned someone money or won a court case, your estate has the right to collect repayment on the loan or the proceeds of the judgment.
If you’re planning your financial future, we’d love to help you reach your goals. Whether you’re planning for your ideal retirement or wanting to build wealth for future generations, we can help focus your financial efforts toward your goals. Contact us today for an introductory consultation.