Inventory Assets and Liabilities
2-4 hoursList all assets (real estate, accounts, retirement, life insurance) and debts to understand estate size and complexity.
Field context
This workflow is part of 4 niche fields
Estate planning basics guide for wills, trusts, power of attorney, healthcare directives, beneficiary updates, and probate avoidance strategies.
List all assets (real estate, accounts, retirement, life insurance) and debts to understand estate size and complexity.
Identify who inherits what, guardians for minor children, charitable giving, and whether probate avoidance is needed.
Prepare will, durable power of attorney, healthcare directive, and trust if warranted. Consult an estate attorney for complex estates.
Calculate whether life insurance proceeds cover debts, income replacement, and estate taxes if applicable.
Store originals in fireproof safe, inform executor of location, and provide copies to attorney and trusted family member.
Calculate total estate value to determine planning complexity. · Verify asset distribution aligns with net worth goals.
Determine adequate life insurance coverage for beneficiaries.
Calculate debts that estate or insurance must cover.
Estimate potential estate or inheritance tax exposure.
Core documents every US adult should consider — complexity increases with assets and family structure.
| Document | Purpose | Attorney Required? | Typical Cost |
|---|---|---|---|
| Last Will & Testament | Direct asset distribution | Recommended | $300–$1,500 |
| Revocable Living Trust | Avoid probate | Yes | $1,500–$3,000 |
| Durable Power of Attorney | Financial decisions if incapacitated | Recommended | $200–$500 |
| Healthcare Directive | Medical decisions if incapacitated | Optional | $100–$300 |
Updating 401(k) and IRA beneficiaries takes 15 minutes and prevents the most common estate planning failure.
Blended families, special needs dependents, and business interests require attorney-drafted documents.
Annual reviews catch account changes and law updates — prevents unintended disinheritance.
Term life costs 5–10x less than whole life for the same death benefit — invest the difference.