Upon your passing, your named executor will begin an “estate inventory” – a process where they will identify all your assets. One of the most important tasks your executor will complete, the inventory identifies the assets in the estate as well as any outstanding debts.
In this blog, we’ll explore the process & identify ways you can continue to help your loved ones protect your legacy, even after your passing.
How the Executor Completes an Estate Inventory
An executor must be thorough so the final inventory list submitted to the probate court is as accurate and complete as possible. Let’s look at some of the options the executor may have for identifying assets:
- The deceased’s will (if they have one)
- Their financial statements or legal documents
- Their recent tax returns
- Abandoned asset database searching
- A public property records search.
The executor may also be able to find assets for an estate inventory by talking to the descendant’s financial advisor, estate planning attorney, or relatives. However, this can be a lengthy process; how can you help your loved ones protect your legacy?
Making the Process Simpler
If you’re planning your estate, you can help make the estate inventory easier for your executor by creating one yourself. While making an inventory of your estate, include the types of assets for which an executor might search. Depending on your financial situation, your personal inventory might include:
- A 401(k) plan or similar employer-sponsored retirement plan
- Traditional or Roth IRAs
- Business retirement accounts, such as a solo 401(k) or SEP IRA if you’re self-employed
- Taxable brokerage accounts
- A Health Savings Account (HSA)
- College savings accounts
- Life insurance policies
- Bank accounts
- Vehicles
- Real estate and land
- Personal possessions that are valued at $500 or more
- Family heirlooms, antiques, or collectibles.
You’ll also want to make a list of any liabilities or debts that you owe. This can include a mortgage on your home, auto loans, private student loans, credit cards, installment loans, business loans, tax liens, medical bills and personal loans.
Once you complete your personal estate inventory you may want to file a copy of it with your estate planning attorney. Review your inventory annually to make certain that it’s up to date.
An Trusted Estate Planning Attorney Can Help
Knowing what’s included in an inventory can make your job as an executor easier. If you submit an incomplete inventory, it may delay the probate process
The team at Ozarks Legacy Law is ready to help make the process go as smoothly as possible. Get in touch with us today & let’s discover how we can help.
