Personal Assets: Why It’s Finally Time to Make a List
Highlights from this article:
Personal assets can include money, investments, property, valuable items, digital assets and business holdings.
A detailed asset inventory will help you with estate planning, insurance claims and net worth estimates.
Keep your asset list secure and share it only with trusted individuals.
Assets are items that you own and are of current or future value to you. Personal assets can include money, investments, property, and valuable items, like art or a stamp collection.
Personal assets are what make up your estate. When you write your will, it’s crucial to have a comprehensive list of all your personal assets so you don’t overlook anything that may be valuable to you (or in general).
Types of assets you might have
When people talk about assets, they often think about money or real estate. However, there’s a wide range of personal assets to consider when you’re estate planning or considering the value of your possessions for insurance purposes.
Personal assets you might hold include:
Cash and bank accounts. This could be cash you have on hand (in your wallet or in a safe in your home), as well as funds in your chequing and savings accounts. Don’t forget about any foreign bank accounts you may have. Keep in mind that you may already have named a beneficiary on registered accounts like registered retirement savings plans (RRSPs) or tax-free savings accounts (TFSAs).
Physical assets and personal property. These assets include tangible items with high values, such as a home, car, boat, cottage, art, wine collection and jewellery.
Investments. This category includes stocks, bonds, guaranteed investment certificates (GICs) and pensions. Although these items are considered assets, you may already have designated beneficiaries for some of them at the time of purchase or account opening. In which case, you may not be able to give them to a different beneficiary via your will.
Digital assets. These include items like social media accounts and loyalty program points. You should also list any cryptocurrency you own, especially, if it is held in cold storage and can only be accessed with a digital key via your personal computer.
Business holdings. If you own a business, you’ll want to make sure it’s accounted for in your estate plan. List it along with a list of any assets it owns, such as property or inventory.
Insurance policies. List the type, information and cash value of any life insurance policies you hold.
Household items. This could include clothing and furnishings, which can be grouped together and given an overall general value.
Why it’s important to catalogue your personal assets
Keeping a detailed list of your assets is crucial for estate planning. It gives you the peace of mind that your items of value are accounted for and will pass to your designated beneficiaries, according to your wishes.
Having a list is vital for insurance purposes as well. Knowing what you own and what it’s worth can help speed up your claim if your house burns down or thieves break in, for example.
Knowing the type and value of your personal assets can help you more accurately estimate your net worth when applying for a loan or mortgage.
How to determine the value of your assets
While it may be challenging to quantify the value of an asset, especially as it changes over time, the original receipts can provide a solid starting point. You can also turn to a professional appraiser to evaluate assets, such as property, furniture, antiques, art and jewellery.
When evaluating the worth of your estate, you can group difficult-to-value items, like clothing or furniture, and give them a reasonable, nominal, overall value.
What to do with your personal asset list
Once you’ve made a comprehensive list of all the various types of assets you own, keep the inventory in a secure place like a safety deposit box to protect your sensitive information. You may want to save a password-protected digital copy of your list on your computer or in the cloud and only share the password with a trusted individual, such as the executor of your will. You may also want to keep a copy of your list of assets with an estate lawyer.
DIVE EVEN DEEPER
Shannon Terrell
Shannon Terrell
Barry Choi