Most adults have an estate. Your estate is made up of everything you own at the time of your death. Your net worth is your assets minus liabilities. An asset is anything a person owns. It can include things like cash, annuities, vehicles, insurance, investments, jewelry, household items, real estate, rental income, retirement funds, bank accounts, stock certificates, lawsuit settlements, and lottery winnings.
A liability is a debt or obligation to pay money to another person or institution. Liabilities include things like alimony, child support, car payments, credit card debt, student loans, mortgages, taxes, personal loans, and insurance premiums. It is a good idea to keep careful and detailed records of your assets and liabilities. Keeping this information with your estate planning documents will be a tremendous help after your death. It lets the Personal Representative know what assets you have and if you have any creditors. You can request a free packet from our website to help you organize your information in one place.