Understanding Tangible And Intangible Assets In Estate Planning
When you want to protect your property, now and for future generations, and ensure your wishes are respected when you pass away, estate planning is a critical step. One important element of estate planning is understanding the types of property you own, particularly regarding the differences between tangible and intangible assets.
It is important to accurately categorize these assets so you can manage your estate more effectively and determine how you would like your property distributed. Below, our Daytona Beach estate planning lawyer explains more about these assets.
What are Tangible Assets?
Tangible assets are physical property that are touchable and movable. These assets are often easier to identify because you may see them and interact with them on a regular basis. Tangible assets also often have a clearly defined value and are easier to sell for cash. Tangible assets can also depreciate in value and can be destroyed. Common examples of tangible property include:
- Personal belongings such as artwork, jewelry, collectibles, and clothing
- Vehicles, including motorcycles, cars, and boats
- Real estate, although immovable, real property is still physical property
Including physical property in your estate plan is fairly straightforward. Due to the fact that this type of property is touchable and typically has a fixed value, it does not have many of the same complexities as intangible property.
What are Intangible Assets?
Just as tangible assets are physical types of property, intangible assets do not have a physical form but they are still valuable. Intangible property is often harder to manage and transfer, as they often require special handling or specific documentation. In an estate plan, intangible assets typically refer to long-term investments such as:
- Financial accounts such as investments, retirement accounts, and bank accounts
- Stocks, bonds, and other investments that may vary in value over time
- Intellectual property such as patents, copyrights, and trademarks
- Insurance policies, including life insurance policies
- Digital assets, such as domain names, cryptocurrency, digital files, and social media accounts
Intangible property, in particular, requires careful consideration when estate planning, as there are often financial and legal complexities involved. For example, intangible assets such as bank accounts may pass directly to named beneficiaries on the account. This means they are not subject to probate, which is a costly and time-consuming process. Additionally, there are often tax implications for transferring funds out of a retirement account. Due to these factors, and others, determining how to distribute intangible assets can be far more complex than planning for tangible property.
Our Estate Planning Lawyer in Daytona Beach Can Ensure All Property is Included in Your Plan
When creating your estate plan, it is essential to ensure that all of your property is planned for. At Bundza & Rodriguez, our Daytona Beach estate planning lawyer can help you identify and classify all of your property so all assets are properly accounted for and distributed according to your wishes. Call us now at 386-252-5170 or chat with us online to schedule a consultation and to learn more about how we can help with your case.
Source:
flsenate.gov/laws/statutes/2000/732.2025
