What is Your Net Worth?

If you are planning your will and determining what you want to do with your fortune when you pass away, it’s important that you know what your net worth is. You are going to have to take steps to figure out this number. By calculating your net worth, you will know the value that you have to work with and will be able to anticipate the tax implications related to your estate. A probate attorney will be able to help you look at those taxes and see if there are ways you can structure your will so that you will receive tax exemptions.

To start the process of determining your net worth, you will want to gather all documents and statements that are related to your assets and debts. These documents will help you to obtain the information that you need to help you determine your net worth accurately. You will need to get all financial statements from your bank accounts, retirement accounts, and other financial accounts and investments. Write down the current market value of your most expensive personal properties, such as a car, a house, and any expensive possessions.

You will want to add the value of any boats, recreational vehicles, or other high-priced items that are in your possession. You may even want to add in expensive art pieces or jewelry items. You will also want to gather all documents that are related to your debt or to your credit cards. Lay all this out on the table and start going through the numbers with the help of a probate attorney. You will want to write down and tally up all of your assets.

Include a description of what assets are involved in the total calculation and make sure to note the market value of each asset when you make the list. This is because a car that is worth a lot now may decrease in value in the future. Some items may have an increasing value, such as a condo that is purchased in a particular housing market. You will want to contact a stockbroker for the current value of any stocks and bonds that you own and determine the current value of those.

After you have calculated all of these expenses, you will want to write down and calculate them. Then write down and calculate your total debt. Deduct your total debt from your total assets to arrive at your net worth for estate planning purposes. This number will allow you to divide your fortune in the best way possible. You will want to take action to protect your assets by making a will, setting up a trust, or making other provisions for the future of the money that you have worked so hard to earn. If you fail to make plans for your finances, the court will divide it equally among your children or will it to your spouse. If they are trying to divide a large fortune that is tied up in a variety of investments, things can get very complicated.

Attorneys suggest that you do a quick review of your net worth every year. This will help you to make sure that your will is always kept up to date. If you purchase a new home, it may change your net worth. Also, if an investment proves successful, you may be left with additional profit that can be added to your net worth. You should always update your net worth and your will when things change concerning your financial standing. With a probate attorney on your side, you will be able to carefully craft an estate plant that will please your heirs and give you peace that your money is going right where you want it to go.