In Estate Planning Reports, what does the Net Worth tab show?

In Estate Planning Reports, what does the Net Worth tab show?

• A. What is owned by the client, what is owned by the spouse, and what is out of estate
• B. The future tax liabilities
• C. The investment performance
• D. Insurance coverage details

Answer: (A)

The Net Worth tab focuses on how wealth is held and what portion will pass through the estate versus outside it. Net worth is the total value of assets minus liabilities, and in estate planning reports it’s shown broken down by ownership: what is owned by the client, what is owned by the spouse, and what is out of the estate. This view helps you see at a glance which assets will be part of the probate process and which will transfer directly by designations or joint ownership.

For example, assets owned solely by the client (like a house in the client’s name) sit in the client category, assets owned by the spouse sit in the spouse category, and items like jointly held property, accounts with beneficiary designations, or assets held in certain trusts may be labeled as out of estate because they don’t pass through the will or probate. This clear categorization supports planning decisions—adjusting beneficiary designations, considering gifting, or restructuring ownership—to align the overall estate plan with goals and tax considerations.