How Is the Value of My Estate Calculated?

When making a Will, you can gift all assets that form part of your estate. The first step in determining the value of your estate is to calculate the value of your assets. Assets can include:

• Real Estate;

• Property;

• Cash;

• Investment;

• Valuables;

• Cars;

• Jewellery;

• and so on;

However it is important to remember that when considering the value of you assets you must also consider liabilities to determine the true value of the estate. Liabilities can include

• Mortgages;

• Car Loans;

• Outstanding Utility Bills;

• Credit Car Bills;

• Personal Loans;

• and so on;

The total value of your estate is equal to the “fair market value” of all of your various assets less all of your debts.

While the above description of your estate seems quite broad, there are in fact a number of assets which fall outside of your estate. These are assets which transfer automatically to third parties on your death. As a result, you do not have the freedom to gift them under your will.

The most common forms of assets which don’t pass under your estate and don’t go through probate include the following:- 
(i)         joint bank accounts;
(ii)        jointly owned property;
(iii)       insurance policies; and
(iv)       property in a revocable living trust.