Over the years, you fill your home with memories, things you love and value. You may have shelves of books, cabinets with heirlooms and souvenirs on display and many more knick-knacks.
When it comes to creating your will, you may wonder: will it be necessary to address every single one of these belongings in your estate plan?
Your estate includes everything you own
Nitpicking over every single trinket may not be necessary. However, it is important to remember that your estate consists of everything you own, which can generally fall into three categories:
- Finances, from savings accounts to stocks
- Personal property, from clothing to cars
- Real property, from your family home to your vacation home
Taking all of these assets into account can be overwhelming. In fact, that overwhelm is one of the reasons many Californians put off estate planning for so long. Even so, it is important to have a plan in place.
The probate process in the future will require an inventory, but it will help you in the present to take inventory of your assets to reduce the stress surrounding this process.
Yes, you should address everything, but…
While you should consider all of your assets in your estate plan, you must remember that you can customize your plan according to your wishes and needs. Therefore, you can:
- Address assets differently based on your priorities
- Group similar, smaller assets together and provide instructions
For example, you will likely be much more specific about how you wish your representative to handle your bank accounts than you will the furniture in your living room.
What matters the most to you?
This will be the key question to ask yourself as you evaluate the assets in your estate. Whether that is your hard-earned wealth or your record collection, you can navigate estate planning based on what assets you value the most.
The family values you hold dear can also help how you plan. You may consult with your loved ones as you create your will and estate plan, to make sure your wishes are clear and your family will be provided for.
Taking the first steps in estate planning can be intimidating. However, the resulting preparations can provide peace of mind for you and your family as you move into the future.