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Careful financial inventory can help with estate administration

Careful planning when one is of sound mind and body can help to ensure that one’s desires and intentions are properly carried out upon one’s death. Organization of one’s finances and assets ahead of time also benefits a person who becomes mentally or physically incapacitated and no longer able to govern his or her own estate. A professor of finance from a university outside of Massachusetts published a recent article about the benefits of taking a financial inventory for the purpose of future estate administration.

Creating a list of one’s financial accounts and contact information for important people can ease the administration of one’s estate when the time comes. The recent article stated that a financial inventory helps to place all of one’s assets, insurance policies and other pertinent information in one location. This, in turn, simplifies the process for those who will need the information in the event of an estate owner’s death or incapacitated state.

A financial inventory is typically separated into various sections. One section usually contains a list of all the financial accounts. Another section often includes a list of liabilities, such as credit cards, outstanding student loans and mortgages. A third might include pertinent insurance information. Additionally, personal documents, military documents and any prenuptial agreements or information regarding powers of attorney should also be included in a thorough financial inventory.

The article also suggested that a financial inventory should be kept in a secure place due to the sensitive nature of its components. Massachusetts residents who want to plan ahead for future estate administration may want to consider following a financial inventory plan. At times, it is prudent to seek legal advice before engaging in the process.

Source:, “Estate planning: Your financial inventory“, James Philpot, March 28, 2015


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