An effective estate plan should create an organized record of your property, explain how each asset is owned and identify where essential documents can be found.
In California, the way an asset is titled determines how it will transfer after death. Some property may pass through probate, while other assets may transfer through a trust, joint ownership or a beneficiary designation.
What your estate plan should identify
Your inventory should include these categories so your representative or trustee can locate, value and distribute your property:
- Real estate: List your home, rental properties, land and timeshare interests. Record addresses, mortgage information and where deeds are stored. State whether the property is owned individually, jointly or through a living trust.
- Financial accounts: Identify checking and savings accounts, certificates of deposit, brokerage accounts, stocks and bonds. Include the institution’s name, account type and the final four digits of the account number.
- Retirement and insurance benefits: Add pensions, 401(k) accounts, IRAs, annuities and life insurance policies. Check the named beneficiaries, as these designations generally determine how the benefits transfer.
- Business interests: Document ownership in corporations, partnerships, limited liability companies and sole proprietorships. Include operating agreements, succession plans and information about business debts.
- Personal property: Record vehicles, jewelry, artwork, firearms, collectibles and valuable household belongings. Keep titles, receipts and appraisals with your supporting documents.
- Digital assets: Include cryptocurrency, domain names, websites, online businesses, cloud storage and social media accounts. Store access instructions securely rather than writing passwords in your will, which could become public.
- Money and legal rights: Identify loans owed to you, royalties, intellectual property, expected inheritances and potential legal claims. These interests may carry value even when no money has yet been received.
An inventory should also identify debts that may reduce the estate’s value. Review the document after marriage, divorce, a birth, a death or a major purchase.
A legal representative can help coordinate your will, trust, ownership records and beneficiary forms so they reflect your intentions accurately and enforceably.
