Many estate plans focus on a listing of assets. Listing your assets is a very smart and important part of getting your estate in order. You may be considering the division of your assets as a part of your estate plan, or perhaps you just need to make an account of them for insurance purposes or retirement. Assets are a very important part of the estate planning process.
So you are ready to start listing your assets, but you're wondering, "What exactly is an asset?" Very simply put, an asset is a financial resource. Your assets can encompass essentially everything you own.
You might think you only have a few assets – some money in the bank, for example, or your home, car, and so on. But that is not an exhaustive list of your potential assets. In fact, assets don't all have to be tangible, in-hand possessions.
Some examples of potential assets:
Stocks & bonds
Money you are owed
Just because you have a variety of assets does not mean that you necessarily have access to the funds equivalent to the value of your assets. Assets that can be used at their cash value are known as "liquid assets." A liquid asset specifically refers to an asset with a cash value that (a) is immediately accessible or (b) has the ability to sell at a fair market price quickly.
Liquid assets include:
Cash you have on hand
Money you have in checking, savings, or money market account
Stocks & Bonds
If you still have questions about assets, feel free to get in touch! We are here to answer any questions you may have about your assets, or anything pertaining to estate planning. At the Law Office of Justin M. Gilbert, we have years of experience and a highly skilled staff. Put us to your best use!