To create a coherent estate plan, you must first estimate your net worth. How much work you should put into the estimate will depend on the following factors:   

• If you know your estate is large, use as much precision as possible.

• If you know your estate is too small for estate taxes, but own assets that will earn income after your death, use as much precision as possible. (Refer to the article Tips to Minimize the Estate Income Tax to plan accordingly in this scenario.)

• If you know your estate is small with few assets that will earn income after death, a ballpark figure will do.

Basically, estimate your net worth as precisely as possible anytime tax planning is a concern in your estate plan. This will allow you to plan for tax avoidance properly and prevent any awkward surprises for your executor.

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