We all tend to behave in similar ways when planning for the future—we save money for college, plan for our first homes, prepare for our first jobs, yet none of those things are inevitable the way death is. No matter what we do, the end will come (whatever that looks like), and we have limited time to choose what to do in the instant when everything changes. In Seth’s case, death did not come, but his life came to a halt, and without proper planning in place, I was left with struggles and heartache we could have avoided had we been able to admit that life as we know it is not infinite. 

Asset management is one aspect of end-of-life planning that so many people overlook or underestimate. Whether it’s underestimating how many assets you have or not knowing how to allocate your assets, we’re breaking down the essentials on assets. 

 

What are assets? 

Assets refer to anything you own that may be of immediate or future value, for example, properties, vehicles, bank accounts, family heirlooms, or anything you and your loved ones deem valuable. Savings bonds count as property. The computers, TVs, and furnishings in your apartment are things that you own. As people get older, get busy, and move from job to job, it’s easy to forget little investments or small insurance policies. Maybe your employer at your old job offered a small 401(k) that you never bothered to rollover to your next company. Most people don’t realize how many assets they have, so it can be good to sit down every few years to reassess your assets and ensure your will is up to date. 

 

How are assets distributed with a will? 

With a will, your named executor will read out your last wishes and your desired distribution of assets. As a legally binding document, your assets must be distributed as outlined. A will with detailed asset allocations means that you and your loved ones can rest assured that everything will go where you’d like. 

 

How are assets distributed without a will? 

Someone who dies without a will is called “intestate,” which invokes the strict laws of intestacy. Intestacy laws differ from state to state. If you die without a will (die “intestate”), you cannot choose who will inherit your money, real estate, property, belongings, insurance and retirement benefits (your “estate”). Instead, your estate will be divided according to state law.

 

How do you factor in assets? 

Including a breakdown of all your assets in your will and who your intended beneficiaries are will ensure that your wishes are honored. It’s also a good idea to talk to your loved ones and beneficiaries so that they have an idea of what to expect, which alleviates stress and avoids surprises. 

There are some great resources that can help get a last will and testament and asset allocations started for you! We always recommend getting peace of mind by contacting an estate planning attorney to help you with your estate planning.  They can help you draft a will that suits your needs, whether your assets are extensive or modest.

We are not providing legal advice. All estate planning varies from state to state. Please seek an attorney in your state for specific information and details.