Helping secure the value of your estate

Executors (usually an adult child) appreciate having an inventory already prepared when it's time to settle an estate. Reducing the emotional stress and time involved is a very good reason for having an inventory now. Yesterday's post, "Do it for the kids" discussed this issue. But there is other reason to have an inventory now - one that could affect the value of your estate.

Knowing that you’ll be able to maximize your insurance claim if you have a loss brings peace of mind for you. This is because you’ll always know what was in your home. Without this document, your settlement will most likely not be sufficient to replace everything.

Then the domino effect sets in. If you don't receive an adequate insurance settlement, you'll most likely need to withdraw money from a savings or investment account (we often hear that amount runs into thousands of dollars!). The funds withdrawn could reduce the value of your estate. This could alter your plans regarding what you were hoping to pass on to your children, grandchildren, siblings or charities.

Discuss this with your parents and encourage them to have an inventory of their belongings. And once again, I suggest you do it for your kids.