When it comes to estate planning, the first—and often most overlooked—step is creating a complete inventory of your assets. This isn’t just a formality; it’s the foundation for a well-structured plan that ensures your wishes are carried out, your loved ones are cared for, and no valuable property slips through the cracks.
But what exactly should be included? And what doesn’t count as an asset for this purpose? Let’s break it down.
Why an Asset Inventory Matters
An asset inventory is essentially a master list of everything you own (and sometimes what you owe). It:
- Helps your executor or trustee quickly locate and manage property after your death
- Ensures nothing gets lost, unclaimed, or overlooked
- Gives your attorney, financial advisor, and accountant a clear picture for planning purposes
- Helps identify assets that may need to be retitled or updated to avoid probate
Without this list, your estate’s administration can become time-consuming, expensive, and stressful for your family.
What Counts as an Asset
When making your list, think broadly. Assets can include both tangible and intangible property.
1. Real Estate
- Primary residence
- Vacation homes
- Investment properties
- Land (developed or undeveloped)
2. Financial Accounts
- Bank accounts (checking, savings, money market)
- Certificates of deposit (CDs)
- Brokerage accounts
- Retirement accounts (401(k), IRA, pensions)
3. Business Interests
- Ownership in a company (corporation, LLC, partnership)
- Intellectual property rights (trademarks, copyrights, patents)
- Contracts or royalties producing income
4. Personal Property
- Vehicles (cars, boats, motorcycles, RVs)
- Jewelry, art, collectibles, antiques
- Furniture or high-value household goods
5. Insurance Policies
- Life insurance with a cash value component (whole life, universal life)
- Annuities
6. Digital Assets
- Online financial accounts (PayPal, Venmo)
- Cryptocurrency wallets
- Monetized websites, blogs, or social media accounts
- Cloud-stored intellectual property
What Doesn’t Count as an Asset for Estate Planning Purposes
While you might think everything you “own” belongs on the list, some items either have no transferable value or are excluded for practical reasons.
- Term Life Insurance Policies (no cash value; they only pay out if you pass during the term)
- Non-transferable licenses (driver’s license, professional licenses)
- Personal data or memberships (gym memberships, streaming services)
- Household items of low value (clothing, everyday kitchenware, consumable goods—unless valuable or collectible)
- Future income from employment (salary not yet earned)
How to Keep Your Asset Inventory Useful
- Be Detailed – Include account numbers, property descriptions, locations, and contact info for custodians or managers.
- Update Regularly – Review the list annually or when major changes occur (buying a house, selling a business, inheriting property).
- Store Securely – Keep both a physical and digital copy in a safe location, and make sure your executor or trustee knows how to access it.
- Work with Professionals – An estate planning attorney can ensure your list aligns with your will or trust documents and helps avoid probate complications.
Bottom Line
Creating a complete asset inventory is one of the simplest but most powerful steps you can take in estate planning. Knowing exactly what counts—and what doesn’t—helps you build a plan that truly reflects your wishes, maximizes value for your loved ones, and avoids costly oversights.
Ready to start planning? Book a call today.
