Thursday, December 8, 2016, AM | Leave Comment
There are many reasons why you may need to create a valuation list of all of your assets.
For example, you may be trying to calculate your net worth, or you may be working with an estate planning lawyer to prepare your will. You may fumbling as you try to figure out how to review everything you own.
Valuing your assets may sound easy enough at first glance, but many people struggle to make a straightforward and accurate list of their assets with realistic values assigned to each item.
If you are preparing a list of assets for any number of reasons, consider following these tips to generate the list more easily.
Make a List of All Valuable Items You Own
As a first step, you should initially list out each item you own that may hold real value.
Think about large items, such as real estate, vehicles, boats, and more. It might be helpful to visualize each room in your home individually and identify each item of value that may be in the room.
Wisconsin Estate Planning Lawyers say many people own far more assets than they initially think they do.
Research the Value of Each Item
There are different methods you can use to value an item. For example, you can value an item based on the current value, including depreciation or appreciation. This is the most common valuation method, but it can be difficult to determine.
For real estate, jewelry, and cars, you may need to contact an appraiser to get a realistic and true value. If you do not need a firm value and estimate will do, you can use the Internet to try to research the values for each of your items.
Provide Your List to Third Parties
After you have finalized your list of assets, it may be helpful to provide your list to a few third parties.
For example, you can provide it to your insurance agent as part of the valuation of your property, and this can protect you from loss when you need to file a claim. You can also provide it to your estate attorney as part of the planning process.
Updating your list of assets is also important from time to time. You may consider repeating this same price once a year. Ideally, you will see the value of your assets and net worth increase over time.
Eileen O’Shanassy is a freelance writer and blogger based out of Flagstaff, AZ. She writes on a variety of topics and loves to research and write. She enjoys baking, biking, and kayaking. Check out her Twitter @eileenoshanassy.