Nobody loves thinking about end-of-life planning. But there's real peace of mind knowing your loved ones will be cared for when you're gone. Taking the time now to understand your estate and what it includes can make a big difference down the road, for you and your family.
So what exactly is your "estate?" And what should be included in your estate plan?
What Is an Estate?
Your estate is the total of everything you own at the time of your passing. That includes not only your home and physical possessions, but also intangible assets like financial accounts, investments, and life insurance. It's the complete picture of your wealth, before any debts are deducted.
Understanding what makes up your estate is the first step in creating a clear, legally sound estate plan.
The Assets Included in an Estate
When it comes to estate planning, it's helpful to break your assets into three main categories: tangible property, intangible property, and real property. Here's a closer look at each:
Tangible Property
These are the physical items you own—things you can touch and move. Examples include:
- Vehicles (cars, motorcycles, boats)
- Furniture and household items
- Artwork and collectibles
- Tools, equipment, and electronics
- Clothing, jewelry, and personal effects
- Photographs, letters, and keepsakes
Intangible Property
These assets may not be visible, but they often carry significant financial value:
- Bank accounts and cash reserves
- Life insurance policies
- Stocks, bonds, and mutual funds
- Business interests or ownership shares
- Copyrights, patents, and royalties
- Retirement accounts (401(k), IRA, etc.)
- Cryptocurrency or digital assets
Real Property
Real property refers to land and any permanent structures attached to it. This includes:
- Your primary residence
- Rental properties or investment homes
- Vacation homes or cabins
- Undeveloped land or acreage
- Commercial property or real estate holdings
- Shared property interests (e.g., timeshares or co-owned land)
Why Inventory Matters
When planning your estate, creating a detailed inventory of your assets is essential. This helps determine the total value of your estate—which affects potential estate taxes—and can help reduce complications for your beneficiaries. With a thoughtful estate plan, you can also look for ways to protect your assets and reduce tax burdens.
Why Estate Planning Matters (and How a Lawyer Can Help)
Planning helps protect the people you love and preserve what you've worked hard for. With thoughtful estate planning, you can:
- Minimize estate taxes and court costs
- Avoid family disputes and legal complications
- Appoint guardians for minor children
- Ensure your assets are distributed according to your wishes
- Plan for incapacity or long-term care
Working with an experienced estate lawyer in Schaumburg, Cook County, gives you the legal insight and personalized guidance you need. A lawyer can help you create a solid plan that complies with Illinois law, aligns with your goals, and brings peace of mind.
Let's Talk About Your Estate Plan
If you're ready to start planning or updating your estate, our Schaumburg law firm is here to help. At Robert M. Kaplan, P.C., we guide clients through the estate planning process with clarity and compassion.
Give us a call today to schedule a consultation. It's never too early to get your affairs in order.