Asset inventory: the basis for smart future planning

As a business owner, it is important to prepare for the future. Without a clear, complete and up-to-date asset inventory, you make decisions with too little context at best, and wrong ones at worst. An inventory clearly brings together everything you own (private and professional), shows diversification and evolution, and allows tax and financial projections, e.g. for your retirement.

It is the first building block of your continuity plan and accompanying succession planning.In this article, we explore the role of an asset inventory and why a continuity plan is essential.

What is an asset inventory (and what is it not)?

An asset inventory is anstructured photo and filmof your assets:

• The photo tells you what youowns today, how much it is worth and how your assets are spread out. It is an overview of your real estate, financial assets, cash, partnerships, art, ...
• The film gives insight into the evolution of your ability in the past AND makes a projection to the future. How have your assets grown or changed? What happens when you retire? How much tax will your heirs pay upon your death?

It is not merely a list of bills or a folder of documentation. The power lies in the combination of completeness, timeliness and interpretability, so you can make informed, strategic decisions at any time.

An asset inventory is thus an personal report that gives you clear insight into your situation.

What does a good report look like?

A clear report answers four key questions:

1. What about today?
An overview of yourtotal powerand breakdown by heading.

2. How are my assets spread?
Spread by asset class so that allocation risksvisibleBecoming.

3. How has my ability evolved and what is its origin?
Atimelinewith evolution by section and aorigin framework(accruals/transfers), crucial for family arrangements and taxation.

4. What happens in the future scenarios?
Pension simulations, cash needs and inheritance tax simulations by scenario, supplemented by recommendations.

The presentation illustrates this with tables and sample percentages. Exactly the insights entrepreneurs need tofrom data to decisionsto go.

How does this fit into your continuity plan?

A continuity plan prepares your business and your family for 'what if' scenarios. The asset inventory is the start, but is supplemented by 3 other important pillars:

• History of measures taken: a chronological history of the steps you have already taken (e.g. donations, care proxy, partnership, etc.).
• The impact of the steps taken: who can make what decisions at what level, who inherits what, etc.
• Rotary: a practical plan of action in emergencies: a list of contacts (advisor, notary, banker), the repository of documents and passwords, and a list of decisions to be taken at short notice.

It gives your family and your business hold At the moment when everything wobbles.

Why is such a continuity plan crucial?

1. Speed and calm in the face of adversity
If you tomorrowineptbecomes or dies, your surroundings shouldknow immediatelywhat there is,whereit is located andwhowhat may decide. Without a plan, you lose days or weeks. With an inventory and a plan, you wintime and peace of mind.

2. Better decisions today
Invest, donate, restructure: only when you knowhow your assets are spreadandwhat the impactis of a measure, make choices that really work, both fiscally and operationally.

3. Consistency with your succession planning
Succession planning determineswho gets what; your inventory showswhich is,where it comes fromandWhat happens in the "what if" scenarios. The two reinforce each other, but the inventory comesfirst.

Do you want peace of mind about your assets, your family and your business?

Get guidance in preparing a continuity plan. Our pro experts help you create an asset inventory, complemented by a history of the measures taken, their impact and a roadmap for "what if" scenarios.