When it comes to planning for your estate, you should keep in mind that there are a lot of things that you should do. One of the things that you should do is to make sure that you keep a record of your properties, your debts, and everything that could affect your total net worth.
With that, this article aims to provide you with information on what you should do when you record your assets and debts. How do you classify them? Read this article to learn more.
What is an asset?
The first thing that you should know is how to classify your properties into assets and liabilities. An asset is an item of monetary value that would add value to your net worth. Whenever the accumulation of the properties would increase your property value, you have an asset.
What are properties that are considered assets?
Assets include any of the following properties:
- Bank accounts;
- Real estate properties;
- Investments in stocks and bonds;
- Investments in passive income properties;
- Vehicles you fully own and not mortgaged; and
- Other income-generating resources.
What is a liability or a debt?
A debt is a money that you owe. Whether you like it or not, a debt that you have will follow you and your assets at the time of time. So even if you do not pay for the things that you owe now, either your estate or your children will have to pay for it.
What are properties that are considered debts or liabilities?
Liabilities include any of the following properties:
- Mortgages;
- Credit cards; and
- Vehicle payments.
Any property that incurs a decrease in your net worth is considered as a liability.
Why is it important to have a record of my debts and assets in estate planning?
Estate planning in Michigan, or anywhere else in the world, requires that you know where you stand. In the best possible scenario, you will know how to distribute your property and take care of your children even when you are gone or you are unable to decide your medical needs.
In the worst possible scenario, you do not want to leave your children with properties that will just be forfeited by banks or creditors.
We have seen a lot of problems with succession once the patriarch or the matriarch passes away. It is important that you lean towards getting a better hold of your properties while you are able and while you still have the time to fix your net worth. Life is short, but for everything else, Haque Legal is here to help.
Haque Legal is Here To Help
We have been around. We have handled hundreds of cases on family law, custody battles, and parenting. We can help you fight for your rights and work your way around getting that parenting time that you deserve. Haque Legal is here. You can find that the best kind of experience for you is to hire our law firm.
Here at Haque Legal, we always have your back. Make sure that on your first free consultation, we tell you everything that you need to know about your divorce or custody case as well as the cost and the expenses that would be associated with it.
The consultation is free for the first time because we understand that you need to at least have that guidance coming from a reputable law firm and lawyer to assess your case. If you have concerns about your divorce or custody case and you need a lawyer to handle it you can always contact our law firm and we can talk about your situation and the best way that we can handle it, especially in terms of the expenses.
Let Haque Legal Help You With Your Case
If you require a lawyer who can assist you with ensuring that you protect your rights, it is important to know that you also have a team that can help you out with your specific needs.
Our law firm is dedicated to making sure that those who are innocent will be protected by the law and that the full extent of justice will be used.
Disclaimer
The article that you have read is based on general applications of the law. It is not legal advice and it is not to be construed as any legal consultation with the firm. No client-attorney relationship is created when you read the articles we have provided.
Let us help you out
If you need a Southfield family lawyer to help you during your proceedings, call us immediately. If you have any problem with the law or are seeking justice and truth, our numbers are standing by to take your call.
The post <strong>Recording Your Property Values for Estate Planning in Michigan</strong> appeared first on Haque Legal.