We discussed step 1 of family wealth transfer here, now step 2.
Step 2. Identify Your Assets and Liabilities
When planning for your family's financial future, be comprehensive. Start out by creating a personal balance sheet.
We will discuss step 3 here.
Step 2. Identify Your Assets and Liabilities
When planning for your family's financial future, be comprehensive. Start out by creating a personal balance sheet.
- Catalogue all your assets, their location, and their value: Financial accounts (including retirement accounts), share certificates or investments not located in financial accounts, real estate, business interests, safe-deposit boxes, tangible personal property, mineral rights, life insurance, mortgages or notes owed to you, and any other assets (trusts, investment interests, etc.).
- List all your liabilities: Mortgages, secured debt (e.g., car loans) and unsecured debt (e.g., credit cards). Be sure to include shared obligations and those you have guaranteed, such as a student loan or mortgage for a child or grandchild.
- Record ownership/titling for each asset and liability.
- Review beneficiary designations for relevant assets to ensure they are consistent with your overall wishes and they coordinate with your other estate planning documents.
We will discuss step 3 here.
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