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Catalog of Important Asset Information and Your Estate Plan – Do You Know What You Own? Can Others Find Your Assets?

An important aspect of an estate plan includes assisting the administrators of your estate, during your life or after your death, with knowing what assets are available and where those assets should be located. The best way to address this is to keep a regularly updated list identifying the location for those assets through an Asset Inventory. This concise and helpful tool aids your agents to locate necessary assets which may be used to care for you during your life or distributed to your named beneficiaries after your death. To review your current estate plan, or create a new one, contact Attorney Chuck Murray at Gielow Groom Terpstra & McEvoy.

How an Asset Inventory Fits into an Estate Plan

To provide for yourself during your lifetime, and fulfill other estate planning goals, such as charitable giving, you need to know how much your estate (everything you own) is worth—and therefore how much you have to give. This is simplified if your plans include information on where to locate those assets.

• During your lifetime, certain Agents (power of attorney or trustee, as examples) may need access to your assets to provide for your care.
• After your death, your Personal Representative or Trustee will need access to permit fulfilling your estate plan strategy.

Compiling an inventory not only helps you measure, grow, and distribute your wealth; it also helps those who must step in if you become incapacitated (unable to manage your affairs) or when you pass away, such as your estate executor, trustees, and agents under a power of attorney decision-makers.

We can help you compile a comprehensive list of your assets and fill in any gaps. Before meeting with us, create a list that includes the following information:

• Types of assets and detailed descriptions. Include as much information as possible about each asset, including the following details:

○    Bank accounts: The last four digits of the account number, the full legal name of the financial institution, and whether it is a checking, savings, money market, CD account, etc. Note if the account is held jointly with another person and specify their name and relationship. If you identified a beneficiary for the account, that will impact your estate plan as those beneficiaries will take outright ownership upon your death. Some families are surprised to learn those banking assets transfer immediately and are not available to the estate for administration purposes.

○    Investments: Name of the brokerage firm or investment company, the last four digits of the account number for each investment, the types of investments (stocks, bonds, mutual funds, ETFs, retirement accounts, annuities, etc.), and supporting information such as the number of shares owned. Specify whether the account is held individually, jointly, or in a trust. The ownership status will provide direction on how it fits into your overall estate plan. Also identify the primary and contingent beneficiaries for each account, if you have already completed these forms.

○    Real estate: Provide the complete street address, the legal description of the property as recorded in the deed, lender name, loan number, mortgage details (principal balance, interest rate, and monthly payment), ownership type. If the real estate is owned by one or more individuals, or owned by a trust, it will impact how that real estate asset is distributed through your estate.

○    Personal property: Vehicles (make, model, VIN, and loan information), art, antiques, coins, stamps, jewelry, and other collectibles (including any appraisals, provenance information, or insurance information), and items such as musical instruments or electronics with significant value.

○    Digital assets: Online banking and investment accounts, online payment platforms (e.g., PayPal), cryptocurrency wallets, domain names, intellectual property, and online businesses. Include documentation that proves ownership of these assets, such as crypto wallet addresses and keys.

○    Preplanned or Prepaid Funeral Arrangements. If you own a cemetery plot, identify where is it and where to find the deed. If you preplanned or prepaid a funeral, identify the service provider handling the arrangements.

• Acquisition date. Documenting when you acquired an asset can be helpful for tax purposes and tracking progress toward your financial and estate planning objectives.
• Present value. An inventory is a snapshot in time and needs ongoing review and updates. Use a professional appraiser for items such as antiques, art, jewelry, collectibles, memorabilia, and furniture.
• Storage. While providing your estate planning attorney with a copy of these inventory lists is encouraged, the data can change more often than when you see your attorney. We encourage you to keep a current list with your estate planning documents and secure those documents together in a water- and fireproof home safe. Create backups that are digitally stored with other important documents on an encrypted cloud service or external hard drive kept in a separate, safe location. Use cloud services with features that allow you to share specific folders or files with trusted individuals or provide those individuals with login information for the cloud service or physical drive. (Safe depot boxes may be used, but someone needs specific permission to access those units. Michigan laws will control that access. If you utilize a safe deposit box a qualified estate planning attorney can assist with options for individuals or a trust.)

Cataloging Your Wealth Eases the Administration Burden

You need to know the value of everything you own to grow your net worth. The Asset Inventory discussed is part of that journey. This information better enables you to pass the wealth in an orderly manner. Knowing what assets are available enables you to plan your gifting strategy.

If you would like to review or modify your current plan, or create a new one, contact Attorney Chuck Murray at Gielow Groom Terpstra and McEvoy.

GGTM Law

We are a client-centric boutique law firm in Muskegon, Michigan, comprised of experienced Muskegon attorneys committed to serving the legal needs of a wide variety of businesses and individuals in Muskegon, Grand Rapids, Grand Haven, Spring Lake, Holland, throughout West Michigan, and beyond.