What is an Asset?

Simply put, an asset is anything that a person owns that has material value. An asset can be a house, a car, land, money in a bank account, personal possessions, and anything else that can be assigned a monetary value. Even patents and copyrights are considered assets called intangible assets. When you create a will, it is important to know all of the assets that you possess and their value. Listing your assets in your will helps you control what happens to your property and possessions after you pass away.

Why Do Assets Matter?

In a material sense, assets define your total worth. Companies evaluate your assets when you apply for a mortgage, request a loan, or apply for a credit card. Your assets essentially determine what you can do in the financial world. If a person goes in to debt, he or she can liquidate some assets—convert them to cash—to pay off that debt. In terms of estate planning, assets matter because once you pass away, your assets don't just disappear. They will be passed on to others.

How to Protect Your Assets

You can protect your assets by creating a will. A will allows you to specify which of your assets pass to which individuals, including family members, friends, and organizations. If you don't create a will, your assets will be divided according to state intestacy laws, usually among your spouse, children, and possibly grandchildren, but perhaps not in the way that you would choose. If you have specific plans for your assets after you pass away, you should strongly consider creating a will to ensure that your assets are passed on according to your wishes.

Contact Us

Your assets represent all of the financial successes amassed over your lifetime, and the decision on how to divide them and donate them should be left to you. Don't let the state control the allotment of your assets. For sound legal advice and assistance with creating a will, please contact the experienced Austin estate planning lawyers of Slater, Kennon & Pugh LLP today at 512-338-1100.