Ongoing Assessment & Documentation

Getting FOCUSED on documenting assets

As part of our Loose-Ends series we consider several areas that should be regularly re-assessed and aligned with updated goals, documents, and other important details.  Here we focus on utilizing a couple of tools we have created to help further document different types of assets. We call them the LEM Asset Microscope™ tools.

The “Balance Sheet Microscope” is used to further document information about balance sheet assets (i.e. assets that have a legal title such as stock, real estate and business assets). It is essentially a document providing additional details about each asset beyond its value. We have learned that documenting additional information can be key to helping heirs in making informed decisions about each asset. It includes information such as current market value, cost basis, future potential for the asset, 10-year goal for the asset, at what point should the asset be sold, and so on.

Potential loose-ends to secure or manage

• Reviewing and updating annually (or regularly) for relevance
• Verifying accuracy
• Making material changes (the circumstances may have changed)
• Scrutinizing Trusts – once someone passes – often other “trusts” are created, and these assets may be better suited for certain types of trusts – the Asset Microscope can help make decisions as to which types of trusts are best suited to the assets in question.

Additionally, the “Personal Property Microscope” is used for personal property items that don’t generally have legal title such as, personal heirlooms, art, antiques, jewelry, furniture, etc. It is a tool developed to help identify characteristics of the asset and whom it is to be left to. We recommend the giver take photographs of each item and document the photo with important information about the asset (like purchase value, history of the asset, anticipated future value etc.) to be included in their will.

We have seen this type of documentation to be invaluable to both attorneys and family alike when dealing with a person’s estate. If you have many items to gift, we recommend documenting 3 every quarter and revisiting them every 5 years or so to keep current.

If you are interested learning more about our Loose Ends – Wealth & Beyond programs check out our recent blogs, download the outline by clicking here, or reach out to your advisor today!

• LEM – Looking at Wealth & Beyond – Getting the Most out of the Financial Future You Have Built
• LEM – The Bigger Why – Which provides an overview of Loose Ends Management
• LEM – Reviewing Your Memorial Instructions – Ensuring your wishes are documented and communicated to those who will carry them out
• Reviewing Your Last Will & Testament – Defining personal intentions and determining asset distribution
• Reviewing Your Trust Documents – Estate planning revised
• Reviewing Your DAF & Other Philanthropic Vehicles – Leaving a legacy and giving to the causes that mean the most to you and your family
• The LEM Asset Microscopes – Getting focused on documenting assets
• Family Limited Partnerships – Making decisions with those you love the most