While you are getting started with the estate planning process, you’re going to want to make sure that you know how you are going to divide your assets. Of course, before you are able to do that, you need to make sure that you know what your assets are.
Taking stock of Your Assets
For many people, this is among the most difficult parts of the estate planning process. While you don’t necessarily need to take stock of every single item of value that you have, you are going to want to make sure that you have a fairly thorough inventory and that you are able to assign a value to those assets.
In most cases, your assets will be broken down into the following categories:
- Your primary residence. In many cases, you home will be the most valuable asset that you have. You will want to be sure that you have made note of the home’s current value (and to recognize that this is a value that is subject to change over time). If you own additional real estate – a vacation home or a plot of land for example – you will also want to document it.
- Your savings. When you assess your savings, you will want to look at your savings accounts, money market accounts and certificates of deposit.
- Your investments. You will need to identify the stocks, bonds and mutual funds that you have shares of.
- Your retirement savings. You are going to look at your IRAs, your Roth IRAs, your 401k or 403b plan and, if you have one, your pension.
- Life insurance policies and annuities.
- Vehicles that you own. Cars, boats, an RV, planes should all be documented.
- Jewelry, antiques, collectibles. In other words, once you have identified the big items, you are going to want to make note of the smaller items. If you are unsure of the value of these items, you will want to be sure that you have an appraiser determine the value for you.
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