Your worth, your list

How much are you worth?

After you've gone, the answer will keenly interest your executors, beneficiaries and tax inspector.

And while you are still here, you will need to know what you are worth to make a new - or revise a tired - will.

Listing your assets serves several useful purposes:

• it indicates your likely inheritance tax position.
• it helps you organise what you actually own (and may no longer own).
• it helps you decide which item to give to which deserving relative or friend.
• it helps your executors when they have to ascertain your assets and liabilities and make their own tallies later on.
• it provides essential information for solicitors and financial planners whom you may consult.

List of lists

You should actually prepare several lists :

• standard assets and liabilities
• names and contact details of relatives and friends
• names and contact details of banks, insurance companies and the like.

You will not be able to calculate your worth to the absolute last penny because some assets (bank interest, for example) and liabilities (such as utility bills and tax) can't be precisely determined until after you die. But approximations are useful in several ways.

If you consult a financial adviser or solicitor, they will require most if not all of this information in any event. Preparing it in advance will save time and effort and should result in you paying a lower fee.

Similarly, good lists will help your executors efficiently deal with your estate. They don't waste time and money hunting for all of your assets, and your heirs receive their booty sooner rather than later.

Spreadsheets - even word files - are ideal. The computer instantly calculates the maths, and recalculates as you make changes or corrections. And you can easily make additions and other changes as your circumstances (new insurance policy, new grandchild) change.

Another benefit from computer files: you can email them to your executors, accountants, solicitors and others.

WARNING Money or other assets that are not yours yet are not yours period! For example, you may be relatively young and healthy and in line to inherit a fortune from a very old and very unhealthy grandparent. Odds are great that grannie will go before you do but it is not certain. If you include in your will assets that you do not actually own, you could be storing up trouble for your heirs and your estate.

Surprise (pleasant or otherwise)

Valuable possessions are no longer the preserve of the superrich: many 'ordinary' people have valuable cars, televisions and fitted kitchens.

Even if your home has plummeted in value during the recent (2008 to who knows when) downturn, your home may still be worth considerably more than a decade ago - and may still tip you over the IHT threshold.

On the other hand, you might have sold jewellery or other valuable items during the latest recession. You may have willed something that you no longer own. It is not unusual, especially with a will that has not been revised over many years, for someone to gift an item to someone only to later sell it, trade it in, give it away or lose it.

Even if your net assets are below the nil rate band and there is no inheritance tax to pay, lists can be helpful. A list that clearly sorts out who gets what can prevent disputes.

A list of assets, and then another list of contacts, and still more lists after that?

Sounds like a pain.

But if you are rich or have many items to pass on, you really have little choice but to precisely determine your net worth, and the sooner, the better. And if you are not wealthy, it should not be onerous after all.