The Groundwork for Your Estate Plan – Your Property – Part 2

The last article helped you determine what property you actually own. This article will take a closer look at your property. Sensible estate planning includes the value of what your property is worth.

Make a List of Assets

Make a list of all your major property and each property’s value. Remember, your estate includes the property you own (assets) minus what you owe on the property (liabilities). Some of these asset categories for consideration include:

Liquid Assets, i.e.:

• Bank accounts
• Cash
• Mutual funds
• Certificates of deposit
• Government bonds
• Tradable stocks and securities

Personal Property other than business interests, liquid assets, and real estate

• Vehicles, including automobiles, boats, planes, and recreational vehicles
• Computers, cameras, and any other electronic equipment
• Household goods
• Precious metals
• Jewelry & furs
• Clothing
• Equipment & tools
• Collectibles, antiques, and artworks
• Valuable animals/livestock
• Vested interests in stock options, profit sharing plans, etc.
• Money owed you (i.e., personal loans)
• Limited partnerships
• Life insurance
• Vested interest in IRAs, retirement plans, annuities, death benefits
• Digital assets
• Frequent flyer miles
• Miscellaneous

Business Personal Property

• Copyrights, patents, royalties
• Business ownerships (partnerships, proprietorships, closely held stock, stock options, corporations, limited liability companies) — List each separately with the name and type of business
• Miscellaneous receivables (i.e., rents due from income property; promissory notes, deeds of trusts, mortgages held by you; property or personal services sold by you that are not paid in full by the purchaser)

Real Estate

• List addresses for each real property you own.

When you list each asset, include a description of your property, the type of ownership you have, the percentage that you own, and the net value of your ownership for each property. Total the value of your assets.

Make a List of Liabilities

Quite a few of your liabilities will be accounted for when you listed your property’s net value. As an example, when you looked at the net value of your real estate, you already deducted the encumbrances and mortgages on that particular piece of real estate. In the same light, the value of any small business that you own is the value after you deducted any business debts and obligations. Accordingly, only place on this list major items you did not cover in your asset list. Don’t bother with the small stuff, like what you owe on credit cards this month or the phone bill — things that change frequently. Major liabilities not accounted for previously should be included on this list so that you have a clear picture of your net worth.

Personal Property Debts

• Personal loans (major credit cards, banks, etc.)
• Other personal debts

Taxes

• Only include taxes past and currently due, do NOT include future taxes or estimated estate taxes.

Any Other Liabilities

• Once you obtain your total liabilities, you can deduct them from your total assets and discover your net worth.

If you reside in Colorado or Florida and you are ready to either move forward with your estate plan, are ready for a review, or need your estate planning redone because of life changes or changes in the law, feel free to reach out to me.

(c) 2021 Karen Van Den Heuvel Fischer