Before formulating your estate plan, you’re going to have to find out how much your estate is actually worth. Then, you will be able to determine the best plan of action that’s going to work for you as well as your loved ones.
Here’s some guidance on how you can calculate your net worth for your estate plan.
List Your Assets
The first step is to list all the assets you have. This would include things like the money in your bank accounts and investment accounts, your vehicle, the market value of your home and any investment properties you own, the cash value of your insurance policies, personal property like jewelry and fine art, and your business interests.
Figure Out Your Liabilities
Next, you have to find out and list your liabilities, such as credit card debt, auto loan debt, your mortgage, student loans, medical bills, and anywhere else you owe money.
Subtract Your Liabilities from Your Assets
Your personal net worth is going to be your assets minus your liabilities. So let’s say you figure out that you have $150,000 in assets but $25,000 in liabilities. Therefore, your personal net worth would be $125,000.
Now, you have an idea of where you stand financially and how you may want to formulate your estate plan. For instance, you might want to work on paying off your liabilities so that you have more to pass on to your loved ones. A qualified estate planning attorney can assist you with whatever needs you may have when it comes to preparing for your future.
Contacting Legacy Law Group for Help
If you need help finding out your personal net worth and creating an estate plan, you can contact the estate planning attorneys at Legacy Law Group in Eastern Washington, Spokane Valley, and Spokane itself. Get in touch with us at (509) 315-8087.
