The very first step in building a solid estate plan is to determine your net worth. It's relatively easy to make a quick calculation of your net worth by adding up rough estimates of the values of all of your assets - including bank and investment accounts, personal property (jewelry, collectibles, cars, boats), retirement plans, face values of life insurance, business interests, monies owed to you, oil and mineral rights, and real estate - and then subtracting from this total all of your liabilities - including credit card debt, car and other personal loans, and mortgages:
Once you've calculated your net worth, you'll need to figure out if your estate will be liable for federal estate taxes. You'll also need to ask your estate planning attorney if your state assesses its own separate estate tax and/or inheritance tax:- Overview of Current Federal Estate Tax Laws
- How to Calculate the Gross Value of Your Estate
- What Value of an Asset is Used for Estate Tax Purposes?
- How to Calculate Your Estate Tax Liability
- Which States Still Collect a State Estate Tax?
- State Estate Tax Chart
- Which States Collect an Inheritance Tax?
- State Inheritance Tax Chart
- Understanding the State Estate Tax Exemption Trap
