Many estate law attorneys in Queens recommend making an estate plan as soon as possible. However, you can’t make a functional estate plan if you don’t know the exact worth of your assets. But that’s not the only benefit of knowing the worth of your estate. Knowing the exact worth of your estate will help your beneficiaries and executors, who are paying your debts or filing for tax returns on your estate. In addition, it will help you, the probate court, estate administrators, and your heirs make informed decisions.
However, calculating an estate’s worth can be challenging, especially if you own many assets. Here’s a guide to calculating the estimated worth of your estate.
What’s an Estate Values Formula?
Unlike the calculations of an estate’s worth, the formula used is pretty simple. Scroll down to read the estate’s worth principle.
Value of the estate = assets of the estate – any debts or liabilities
However, to know the exact value of the estate, you should know the value and number of your assets and the debts you have to pay. Here’s a guide to calculating the estate’s value based on the above mentioned principle.
Selecting the Right Date
It’s common knowledge that the value of an asset fluctuates over time. Therefore, it’s essential to choose the same specific date for all your assets. In addition, you should remember that your assets’ value might differ a few years later.
However, things are different when calculating the worth of a deceased person’s estate. You can only select one date, and that valuation date will be after the date of the death.
Determining the Right Assets
It’s possible that you might own many assets, but do all of them contribute to your estate’s worth? Here’s a list of items that are a part of your estate. You should determine their value and add them up to get the total value of your assets.
- Real estate properties like houses, commercial buildings, condos, etc.
- Money in bank accounts
- Personal belongings like jewelry, artwork, cars, etc.
- Pensions, savings, and life insurance policies
- Bonds, mutual funds, stocks, or any other investments
Calculating the Deductions
Now that you have the list of assets and their value, it’s time to list the deductions and deduct their value. The deductions can include but aren’t limited to the following.
- Personal loans
- Credit card loans
- Taxes
- Home mortgage
Want to ensure you’re calculating the correct worth of your estate? Hire an estate law attorney in Queens! At Ledwidge and Associates, our services for estate planning NYC help people make functional estate plans, listing estimated values, assets, and liabilities. Moreover, you can also get your estate plan updated based on fluctuating property values.
Get in touch for professional, experienced estate planning in Manhattan.
Ledwidge & Associates
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