Why Do I Need To Send A List Of My Assets To My Attorney?

Ok, here is a question that many prospective clients ask when they call our office to schedule a meeting. Before I meet with a client, I like to have a general understanding of what their estate consists of so that I can make a list of questions. I also like to make a list of recommendations to discuss, or questions for me to research if necessary, and also some red flags that may need to be addressed.

Your estate consists of your family and your assets.  Estate planning attorneys need to understand the family dynamics.  Do you have children?  What are their ages?  Do they get along? Does anyone have special needs or concerns we need to talk about (divorce, health concerns, etc.).

We also need to understand what type of assets you have.  Here are a few reasons why we ask for a list of assets:

1. Comprehensive understanding of your Assets – We need to completely understand your financial situation in order to give advice on how to plan for them. By knowing the types and values of assets, such as real estate, bank accounts, investments, and life insurance policies, the attorney can develop a tailored estate plan that meets the client’s objectives.  It would be like scheduling an appointment with a doctor and not letting the doctor do bloodwork or examine you.
2. Identifying Ownership and Beneficiaries on Accounts – Providing a detailed list of assets helps the attorney identify ownership and beneficiary designations. Some assets may be jointly owned, while others may be owned individually. Additionally, certain assets may have designated beneficiaries, such as retirement accounts or life insurance policies. By knowing this information, the attorney can determine how these assets will be distributed and can then plan accordingly for the client’s wishes.
3. Will your estate owe a tax when you die?  – In Massachusetts we have a very low threshold (lowest in the country!) for determining whether your estate owes an estate tax.  This threshold is $1,000,000.  This includes equity in the home, death benefits of life insurance policies, retirement accounts, bank accounts, etc. This is quite easy to hit if you own real estate in Massachusetts.  By having a comprehensive list of assets, an estate planning attorney can analyze the tax implications associated with each asset and develop strategies to minimize estate taxes, if applicable. This proactive approach ensures that the client’s estate plan takes advantage of available tax-saving opportunities.
4. How will your estate pay for expenses when you pass?  – Another crucial aspect of estate planning is evaluating the liquidity of the estate. A list of assets helps the attorney determine if there are enough liquid assets to cover expenses, debts, and taxes that may arise upon the client’s passing. There are lots of administrative tasks to be taken care of before distributing the assets.  The cash flow of the estate is important to take into consideration.

Providing a list of your assets with ownership, values, and beneficiary designations to your estate planning attorney prior to your consult makes the meeting much more efficient. The attorney will be able to fully focus on your goals and concerns, and they won’t be mulling over the options for each of your assets as you discuss them. Whether you decide to hire the attorney or not, they are bound by the ethical laws to protect any information provided to them, even if you do not move forward with that attorney for your estate plan. Therefore, if you aren’t ready to share prior to the meeting, you may not be ready to get your plan done. We are here to help when you are ready to get your Will and Trust DONE!