Tips for Managing an Inheritance

As the beneficiary of an inheritance, you are most likely to be faced with making many important decisions during an emotional time. Short of meeting any required tax or legal deadlines, don’t make any hasty decisions concerning your inheritance.

 

Identify a Team of Trusted Professionals

Tax laws and requirements can be complicated. Consult with professionals who are familiar with assets that transfer at death. These professionals may include an attorney, an accountant, and a financial and/ or insurance professional.

 

Be Aware of the Tax Consequences

Generally, you probably will not owe income tax on assets you inherit. However, your income tax liability may eventu­ally increase. Any income that is generated by inherited assets may be subject to income tax, and if those assets produce a substantial amount of income, your tax bracket may increase. This is particularly true if you receive distributions from a tax-qualified retirement plan such as a 401(k) or an IRA. You may need to re-evaluate your income tax withholding or begin paying estimated tax. You also may need to consider the amount of potential transfer (estate) taxes that your estate may owe, due to the increase in the size of your estate after factoring in your inheritance. You may need to consider ways to help reduce these potential taxes.

 

How You Inherit Assets Makes a Difference

Your inheritance may be received through a trust or you may inherit assets outright. When you inherit through a trust, you’ll receive distributions according to the terms of the trust. You may not have total control over your inheritance as you would if you inherited the assets outright.

 

Familiarize yourself with the trust document and the terms under which you are to receive trust distributions. You will have to communicate with the trustee of the trust, who is responsible for the administration of the trust and the distribu­tion of assets according to the terms of the trust.

 

Even if you’re used to handling your own finances, receiving a significant inheritance may promote spending without planning. Although you may want to quit your job, or buy a car, a house, or luxury items, this may not be in your best interest. Consider your future needs, as well, if you want your wealth to last. It’s a good idea to wait at least a few months after inheriting money to formulate a financial plan. You’ll want to consider your current lifestyle and your future goals, formulate a financial strategy to meet those goals, and determine how taxes may reduce your estate.

 

Develop a Financial Plan

Once you have determined the value and type of assets you will inherit, consider how those assets will fit into your fi­nancial plan. For example, in the short term, you may want to pay off consumer debt such as high-interest loans or credit cards. Your long-term planning needs and goals may be more complex. You may want to fund your child’s college educa­tion, put more money into a retirement account, invest, plan to help reduce taxes, or travel.

 

Evaluate Your Insurance Needs

Depending on the type of assets you inherit, your insurance needs may need to be adjusted. For instance, if you inherit valuable personal property, you may need to adjust your property and casualty insurance coverage. Your additional wealth from your inheritance means you probably have more to lose in the event of a lawsuit. You may want to purchase an umbrella liability policy that can help protect you against actual loss, large judgments, and the cost of legal representation. You may also need to recalculate the amount of life insurance you need because of your inheritance. The cost and avail­ability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased.

 

Evaluate Your Estate Plan

Depending on the value of your inheritance, it may be appropriate to re-evaluate your estate plan. Estate planning involves conserving your money and putting it to work so that it best fulfills your goals. It also means helping reduce your exposure to potential taxes and creating a comfortable financial future for your family and other intended beneficiaries.

Some things you should consider are to whom your estate will be distributed, whether the beneficiary(ies) of your estate are capable of managing the inheritance on their own, and how you can best shield your estate from estate taxes. If you have minor children, you may want to protect them from asset mismanagement by nominating an appropriate guardian or setting up a trust for them. If you have a will, your inheritance may make it necessary to make significant changes to that document, or you may want to make an entirely new will or trust. There are costs and ongoing expenses associated with the creation and maintenance of trusts and wills. Consult with an estate planning attorney for proper guidance.

 

To expand on these topics or to discuss any of our investment portfolios, please do not hesitate to reach out to us at 775-674-2222.

Pension or Lump Sum: Which Should You Choose?

Traditional pensions, which promise lifetime income payments in retirement, have become less common in the private sector, with only about 10% of workers currently participating in a traditional pension plan. However, pensions are still widely offered in federal, state and local government employment, and 61% of workers expect a pension to be a major or minor source of retirement income.1

About half of pension plan participants can choose to take their money in a lump sum when they retire.2 In addition, companies may offer pension buyouts to vested former employees who are working elsewhere, and even to retirees who are already receiving pension payments.

Only 29% of women said they would be able to cover their basic necessities if they found themselves out of work for an extended period, compared with 55% of men. And more than half of millenials and Gen Xers and 35% of baby boomers said they would likely use their retirement funds for something other than retirement, with most noting it would be for an unexpected expense or medical bill.1

Although tapping your retirement savings can help you get through a crisis, it can hinder your ability to afford a comfortable retirement. Having a plan to guard your financial wellness throughout your working years can help you avoid putting your retirement at risk.

 

What Is Financial Wellness?

The Consumer Financial Protection Bureau (CFPB) defines financial well-being as:2

  1. Having control over day-to-day and month-to-month finances. In order to achieve this, your expenses need to be lower than your income.
  2. Maintaining the capacity to absorb a financial shock. This typically refers to having adequate emergency savings and insurance.
  3. Being on track to meet financial goals, meaning you have either a formal or informal plan to meet your goals and you are actively pursuing them.
  4. Having the financial freedom to make choices that allow you to enjoy life, such as a splurge vacation.

 

The CFPB has identified several key factors that contribute to an individual’s ability to achieve financial well-being. Among them are (1) having the skills needed to find, process, and use relevant financial information when it’s needed; and (2) exhibiting day-to-day financial behaviors and saving habits.

 

Assistance Is Available

Many employers have begun offering financial wellness benefits over the past decade. These programs have evolved from a focus on basic retirement readiness to those addressing broader financial challenges such as health-case costs, general finance and budgeting, and credit/debt management.3

If you have access to work-based financial wellness benefits, be sure to take time and explore all that is offered. The education and services can provide valuable information and help you build the skills to make sound decisions in challenging circumstances.

In addition, a financial professional can become a trusted coach throughout your life. A qualified financial professional can provide an objective third-party view during tough times, while helping you anticipate and manage challenges and risks and, most important, stay on course toward a comfortable retirement.

 

 

1) PxC, May 2020

2) Consumer Financial Protection Bureau, January 2015

3) Employee Benefit Research Institute, October 2020

Don’t Let a Disaster Keep the Lights Off Forever

In the fall of 2019, wildfires fueled by high winds erupted in parts of Northern and Southern California, threatening structures in multiple communities. Wildfires have long been a concern in this sunny and dry state, but in a recent twist, millions more residents and businesses were impacted when public utilities cut off power to help prevent downed power lines from sparking fires.1

 

Small businesses can be hit especially hard when extreme weather or other unforeseen events result in major damage and/or force temporary closures. In fact, nearly 40% of small businesses never reopen following a disaster.2

 

Check Your Coverage

A business owners policy (BOP) is a package that typically combines property insurance, business interruption insurance, and liability protection (up to policy limits). Property insurance helps protect a company’s buildings, equipment, and contents against a specific list of covered perils.

 

Business interruption insurance helps cover lost income and operating expenses that may continue while a business is closed because of a disaster. It also helps cover relocation and advertising costs so a business can operate from a temporary site. This coverage generally kicks in after a 48- to 72-hour waiting period under three sets of circumstances:

 

  1. There is physical damage to the premises that forces your business to close.
  2. There is physical damage to other properties (caused by a covered peril) that prevents customers and employees from reaching your location.
  3. Your property is inaccessible because the government shut down the area due to widespread damage caused by a covered peril.

 

Be Aware of Exclusions

A business that is forced to shut down due to a power outage may not be covered, unless an optional endorsement (or rider) for “off-premises service interruption” is purchased at an additional cost. Earthquakes are also typically excluded from standard BOPs, as is flood damage. However, a separate flood policy may be purchased from the government’s National Flood Insurance Program or some private insurers.

 

Be Ready to Recover

Insurers will use your financial records to compare the income generated by the business before and after the disaster, so good documentation may speed up the claims process. Make sure to keep an accurate business inventory and take photos of the premises and all your business property. Store these and other financial records online so they can be accessed from a temporary location, if needed.

 

1) The New York Times, October 31, 2019

2) Federal Emergency Management Agency, 2019

Retirement Advice for Those Nowhere Near Retirement

It’s valuable to share insights and information with everyone who is on their journey to retirement — but it can be easy to focus more on those who are closer to retirement instead of earlier in their careers.

So, here’s a look at some financial advice for younger workers. It’s especially valuable to help younger people avoid some of the financial mistakes that some of their elders made on their own financial journeys.

For many people, thinking back to their younger years and the financial decisions they made then is about enough to make them try to invent a time machine. Until time travel comes around, good old-fashioned education is the next best thing. A recent article1 does a great job of providing some of those tips.

The first piece of advice is to learn self-control. When we’re kids, most of us learn self-control in terms of when we talk in class, how many cookies we can eat when they first come out of the oven, and when we go to bed. But it’s just as important to learn financial self-control.

Self-control is even more important when we start to work full-time and make more money than we ever had previously. When we get older and are making a regular salary, we have to learn instant gratification can get us in trouble if we start buying whatever we want with credit cards.

Saving up for the latest PlayStation, rather than putting it on plastic, is going to be so helpful in the long run. Remember, if putting gadgets, jeans, and sushi on credit cards becomes a habit, you could end up paying for those things for many years into the future.

The article does note, of course, that credit cards are a financial tool most people have to use, at least from time to time.1 And you can also be strategic about how you use them. For example, select a card that has good and achievable rewards, perhaps frequent flyer miles or cash back.

Then, always pay your balance in full when the bill hits in your inbox. Also, don’t carry more cards than you can keep track of or pay off each month.

Not relying too heavily on credit cards is such a valuable financial life lesson. Credit cards are valuable tools for emergency situations and can also help you build credit, but it’s so crucial to not to abuse them.

The next thing that benefits young people on their journey to retirement is to know where their money is going. It sounds like a simple thing, but it’s essential. If you stop every morning on the way to work for a bagel or coffee you might not really notice the daily expense. In a way, your mind can play tricks on you. Every morning when you’re in line for your coffee and bagel, you tell yourself, “Hey, it’s only $6.” But your mind isn’t factoring yesterday’s $6 and tomorrow’s $6.

Finally, no matter where you are in life or on your journey to retirement, it’s important to have an emergency fund.1 With factors including credit card debt, student loan debt, an entry-level salary, it can be difficult to build an emergency fund. But it’s still important to save money, even if it’s only a few bucks.

The decisions you make when you’re young can have a lasting impact on your retirement strategy. By starting to make good decisions early on, you’ll position yourself well for everything that’s yet to come on your journey.

1 https://www.investopedia.com/articles/younginvestors/08/eight-tips.asp

How To Get Over Retirement Fears

As it’s depicted in popular culture and advertising, looking ahead to retirement is a time of great excitement and optimism. After all, if you’re in your 60s, you’ve likely been going to work every day for 40 years or more. So, retirement means you can spend your time doing the things you’ve always wanted to do.

 

While that depiction of retirement is in many ways true, it’s also true that those final years and months before retirement can be a source of anxiety for many people. The ads tell us they’re living the good life, but they don’t show how much sweat, work, and worry went into reaching that picture-perfect retirement.

Getting yourself to the retirement you’ve always wanted does take a lot of work and there are going to be moments of doubt and worry. But here’s the thing: Doubt and worry are both perfectly natural. Here are a few of the common fears that were highlighted in a recent article.1

The first common financial retirement fear is simply running out of money. Now, on the surface, that sounds obvious, and to a degree it is. But it’s not easy to determine how much money you’re likely to need in retirement with any real certainty.

One good way to address this fear is to work with an experienced financial services professional who can calmly and confidently address your concerns and questions. A financial services professional may be well positioned to help you add more certainty to determining how much money you’ll likely need once you’ve left the workforce.

In addition, a software program can help you make calculations and show you how much you need to be saving as you progress toward retirement. Perhaps most importantly, a software program may help you find places you can comfortably reduce your expenses after retirement to make it more likely that your money sees you through.

A second fear that you can overcome on your journey is the fear of inflation cutting into your nest egg. It’s true that because of inflation the money you’ve saved for retirement doesn’t have as much purchasing power.1 And if inflation were to go up rapidly, for whatever reason, it could imperil your preferred retirement lifestyle. Those changes could be small, like not being able to eat out or travel as often, or they could be more significant, depending on how much you have saved.

Finally, concerns about high healthcare costs are very common. It’s no revelation to say that healthcare is expensive, and there’s no reason to believe that it won’t just keep getting more expensive. So that leaves a lot of near-retirees sweating the details of their own coverage. But there are things you can do to help you prepare. One option may be opening a health savings account, which is more commonly referred to as an HSA. Not only will this kind of account help you cover medical costs, but it may also provide general tax savings.

You should note, however, that once you turn 65 and enroll in Medicare, you’ll no longer be able to fund an HSA.1

You want the months and years leading into retirement to be a time of excitement, not a time of worry. Working with a financial services professional to help you identify ways to build on your retirement strategy may help.

1 https://money.usnews.com/money/retirement/aging/articles/common-retirement-financialfears-and-how-to-overcome-them

5 Situations When You May Want To Pause Retirement Savings

Being Financially healthy throughout your journey to retirement is just as important as being financially healthy once you retire.

For that reason and inspired by a recent U.S. News and World Report article,1 let’s explore a few situations when it may make sense for you to stop saving for retirement — temporarily, of course.

This information is especially relevant for some people during the pandemic, but these ideas really apply anytime, whether the economy is up or down. And, to make it abundantly clear, these are all temporary situations that may make sense to pause retirement savings.

1| To rebound from a health crisis. During a health crisis it may be beneficial, or perhaps even essential, to pause saving for retirement. If you get slapped with medical expenses that your insurance company doesn’t cover, those bills have to paid out of your own pocket. And it’s safe to say that it doesn’t take long for healthcare bills to add up. If you have an ongoing relationship with a financial services professional, they’re going to be a go-to should you have a health crisis. They’ll be equipped to help you find ways to cover those dreaded out-of-pocket expenses without jeopardizing your future. If you aren’t working with a financial services professional, you may want to consider it.

2| To get rid of credit card debt. If you’re currently saddled with credit card debt large enough that you can’t pay it off each month, it may be a wise move to take a break from saving for retirement so that you can get rid of your credit card debt once and for all. As the article notes, the interest you’re paying on your credit cards may very well wipe out the gains you’re enjoying in your retirement strategy.1 That means getting your credit cards under control will have financial payoffs beyond just reducing your monthly expenses. Consider this: If you have a credit card balance with an interest rate of 17% and your retirement accounts are earning 8%, you’ve obviously got a gap that you’ll want to address as quickly as possible.

3| To cover unexpected unemployment. Losing your job is a terrifying prospect and if you find yourself in that position, you’re entitled to take the necessary steps to get through it. If you or your spouse is temporarily out of a job, you can use the money you were dedicating to retirement to cover household expenses. Then, when your employment situation stabilizes, you can get right back to socking money away for retirement.

4| To save to buy a home. Using the money you were dedicating to retirement to save up a larger down payment or to cover closing costs may be an appropriate financial move that could help you build equity faster in a long-term asset — your home.

5| To build an emergency fund. Having enough cash saved to cover unforeseen expenses is critical and many experts recommend having enough money to cover your expenses for six months to a year.1 A great thing about pausing for an emergency fund is that it has a clear endpoint. If you need to save $8,000, you know how to get there, and once you hit that number, you can pivot right back to bulking up your retirement savings.

Your financial health on your journey to and through retirement is important. Contact a financial services professional if you’d like some suggestions on ways you can stay financially healthy.

1 https://money.usnews.com/money/retirement/401ks/articles/times-to-stop-saving-for-retirement

What To Do When Retirement Is Right Around The Corner

If you’re like many people, the majority of your retirement strategy has been in planning and doing over decades. But what about when you’re almost ready to retire? Your strategy is likely to change.

Here are some things that you can keep in mind if your retirement is literally right around the corner, thanks to an article from the Motley Fool.1

One step is to make sure you take advantage of your flexible spending account (FSA) right up until you retire.

Remember, in 2020 you could funnel $2,750 in pre-tax dollars1 into your FSA and that number stayed steady in 2021.2

That money can be used for things like glasses, visits to the dentist, some medications, and doctor visits. Of course, if you don’t use the money in your FSA, you lose it.

Health savings accounts (HSAs) may be an even stronger play because the money you put into them doesn’t get forfeited.1 They can remain in your account and withdrawn without a penalty. You should note however, that the money you withdraw does become taxable income.

The 2021 HSA contribution limit is $3,600 for individuals and $7,200 for families.3 Also, people who are 55 and older can kick-in another $1,000.

When it comes to organizing your healthcare right before you retire, it’s also critical to have a thorough understanding of Medicare because there are plenty of options and nuances. Healthcare, especially Medicare, is a reason to meet with an experienced financial services professional who can help you make healthcare decisions that fit into your broader financial and retirement strategies.

Another thing to make sure you’re considering before you retire is inflation. You’ll want to make sure that you factor inflation into your savings goal to make sure your money is working just as hard for you 10 years into your retirement as it was on the day you retired.

Finally, it’s no secret that Social Security is an essential part of retirement for millions of Americans. Therefore, it’s important to understand what you’re likely to receive, when you should file, and ways you may be to increase your monthly payment.

Currently, the average monthly Social Security check is $1,478, which equates to $17,700 per year.1 You don’t need to have an economics degree to know that’s not going to come close to covering an extravagant retirement lifestyle. But remember, that’s just the average. If you were a high earner, your monthly check will be higher. And the current maximum monthly check is $2,788, good for $33,500 annually.1

If you don’t already have a clear idea of what your monthly benefit will be, you can visit the Social Security Administration’s website, at ssa.gov and set up an account to do so. One note here: The Social Security formula used to tabulate your monthly check considers your 35 highest-earning years. That means if you’re currently earning more than you ever have, and you like your job, you may want to at least consider working for another year or two because it will drive up your eventual Social Security payment.

There are many factors that you’ll want to consider before you make the leap into retirement. A financial services professional can help you. But most of all — congratulations! You have worked for years to reach this moment.

 

Enjoy it.

 

1.https://www.fool.com/retirement/planning-to-retire-in-2020-a-complete-guide.aspx

2.https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2021

3.https://www.forbes.com/sites/ashleaebeling/2020/05/20/irs-announces-2021-health-savings-account-contribution-

limits/

Simple Fixes That Can Improve Your Financial Situation Today

Finances are complicated. But these quick fixes aren’t.

Here are some ideas that you can implement — without a massive time investment or lifestyle change — and get results.1

Review your credit card statements. That doesn’t mean a quick once-over. You should sit down and spend some time analyzing what you’ve been purchasing. If you’re like nearly every other American, you’ve made some unnecessary or impulsive purchases. Don’t beat yourself up about this, because it happens to almost everyone. By taking the time to go through your credit card statements, you reduce the risk of forgetting a purchase or repeating the same purchasing mistakes in the future.

Look at your tax return. Tighten up your finances by looking at your tax return. If you’re getting a big tax return each year, you may want to consider adjusting your withholdings. This is an area where it might make a lot of sense to work with a financial services professional. They’ll have the experience to help you make tax and overall financial decisions that are going to be beneficial.

 

Bundle your insurance. You may be able to streamline your finances and keep a few more bucks in your pocket each month by putting all your insurance eggs in one basket. Working with one company for your home, auto and other insurance products may improve your rates. And let’s face it, the more business you do with one company, the better they’re likely to treat you. If you aren’t getting what you consider a fair rate, don’t hesitate to shop around. You only have to reduce your monthly payment by about $83 a month to save $1,000 annually — that’s real savings you could find in a hurry.

Reduce your entertainment spending. Many people can benefit from a quick call to the cable company to lower their rate. In a world where cord-cutting is becoming increasingly common, cable companies are going to play ball when it comes to keeping your business. Like with your insurance savings, don’t focus on what you’re saving per month; focus on what that monthly savings means over the course of a year or even longer.

Get a copy of your credit report.  Look it over closely and make sure all of your reported debt is accurate and that you don’t have anything outstanding that you’ve forgotten about. Your credit score is a valuable way to get a sense of your current financial standing. While it can take a long time to make a major change on your credit score, doing something today can have immediate results in turning it around.

Develop a strategy to eliminate debt. We all know that it can take a while to eliminate debt. But developing a plan to get there doesn’t take as long. Putting in place a strategy for debt elimination and improving your credit score is an excellent reason to meet with a financial services professional. A financial services professional will also be able to explain how your current financial habits and credit score may be affecting your ability to adequately prepare for retirement.

Take a moment to do one or more of these things today — you’ll thank yourself later.

1 https://money.usnews.com/money/personal-finance/slideshows/25-ways-to-fix-your-finances-fast

Get the Last Five Years Before Retirement Right

We spend decades working our way toward retirement. The accumulation phase, when we’re gathering wealth before retirement, is generally considered to be decades long. But every stretch is important, including the five years right before you retire.

The truth is the last five years before retirement requires a different strategy and adjustments to match. Those last five years are, to borrow a cliché, the home stretch and you certainly want to turn into that home stretch with confidence.

When you’re in your 20s and 30s, retirement is something of an abstract concept. You know it’s out there, but you don’t really spend a lot of time thinking about it. But when you reach your late 50s or early 60s, you realized it’s real and it’s coming fast.1

In those later years, you can ask yourself a series of important questions: Have I socked enough money away? Have I worked with a financial services professional to discuss investments and allocations? Am I prepared to pay for long-term care costs? Should I consider a trust? Should I prioritize paying off my mortgage? Is my 401(k) going to provide me with enough retirement income?

The answers to those questions will help you address challenges in your last years before retirement. First, you’ll want to get a complete understanding of where you are financially at that time. You can take some time to assess how your money is allocated in terms of retirement accounts and investments, and your expected Social Security income and strategy.

And then there’s the most important question of all: When you combine all of these potential income sources, will they create a pot big enough to allow you to maintain your current or preferred lifestyle?

If you aren’t sure you’re as ready as you should be for retirement, it can make a lot of sense to work with a financial services professional. Chances are there’s an experienced pro in your community who can answer your questions, analyze your current strategy, offer suggestions and perhaps most importantly, calm your nerves.

And don’t forget that if you’re still five years away from retirement, there’s likely still time to adjust your allocations, how much you’re saving, and your tax strategies.

Another important question you should ask yourself is what you want your retirement to look like. Does your imagination wander to relaxing afternoons reading a book on the beach, or are guided tours through the great European sites and museums more your cup of tea? Or, maybe your preferred retirement isn’t so much grand adventures as it is time with your children and grandchildren without the worries and burdens of work.

You can start to make a plan for where you want to be, and where you want to go when you have a clearer picture of that in your head.

Finally, the last question you’ll want to ask yourself is if the timing is right. Everyone has a different vision for when they’ll retire. Some common ages are:

  • Age 59 ½, which is when you can begin avoiding penalties on withdrawals from retirement plans
  • Age 62, which is when you first become eligible for Social Security
  • And age 65, which is when you become eligible for Medicare

If you retire before you turn 65, you’ll want to have a plan for how you’ll get health insurance. This is no small consideration. No matter the option you choose, it’s imperative to have adequate insurance when you retire.

You spend so much of your working life working toward retirement. Make sure you nail the last five years so you can head into retirement on a high note.

1https://www.forbes.com/sites/davidrae/2020/07/23/mastering-the-last-five-years-before-retirement/

 

Don’t Overlook Legacy Planning

You have to be willing to get a little dark to talk about legacy planning. But the sooner you do, the better off you may be.

The lack of a legacy plan can cause chaos and stress for the people who survive us. This topic was the subject of a recent article from Investopedia, “Estate Planning: 16 Things to Do Before You Die.”1 The article paints a clear picture of what you should do to make your passing easier on the people you care about. A few of the key points are highlighted here.

A good place to start is to itemize your possessions. Grab a piece of paper and conduct a thorough inside and outside tour of your home to create a comprehensive inventory of all your valuable possessions.

The lack of a legacy plan can cause chaos and stress for the people who survive us. This topic was the subject of a recent article from Investopedia, “Estate Planning: 16 Things to Do Before You Die.”1 The article paints a clear picture of what you should do to make your passing easier on the people you care about. A few of the key points are highlighted here.

A good place to start is to itemize your possessions. Grab a piece of paper and conduct a thorough inside and outside tour of your home to create a comprehensive inventory of all your valuable possessions.

The lack of a legacy plan can cause chaos and stress for the people who survive us. This topic was the subject of a recent article from Investopedia, “Estate Planning: 16 Things to Do Before You Die.”1 The article paints a clear picture of what you should do to make your passing easier on the people you care about. A few of the key points are highlighted here.

A good place to start is to itemize your possessions. Grab a piece of paper and conduct a thorough inside and outside tour of your home to create a comprehensive inventory of all your valuable possessions.

https://www.investopedia.com/articles/retirement/10/estate-planning-checklist.asp