PREFACE Why Should You Act Now?The author was trained from an early age to step-back and think about what needed to be done and how to reach the goal by developing a well-thought-out plan. Following the example set by her mother, she learned to think broadly, make lists, organize, learn from life’s experiences, account for her assets, use her assets to best advantage, and share her talents with others. It is the author’s desire to give great value by sharing her experience, talents, and knowledge with her readership. Having firsthand knowledge that bad things happen to good people, the author uses stories, an explanation of the process laid out in the book and a series of questions to hook the reader into this positive and challenging way to take control of their assets and their life. The author shares nine true stories that she, a family member, a close friend, or a local colorful character experienced. These stories are designed to nudge the reader out of complacency and procrastination, and into action! 1. December 1982 – I set the thermostat to 60°, set my alarm system, locked the door, and Felix, my dog, and I drove from Atlanta to spend Christmas with my Mother in Virginia. The weather was a balmy 73° and life was good. Two days later, one of those freaky winter storms blew in off the Gulf of Mexico and the temperature plummeted in Atlanta to -5°. Unbeknownst to me, my heating system malfunctioned and 33 pipes burst in my house. Late in the afternoon on Christmas day, my next door neighbors noticed water seeping and freezing into icicles on the brick, from the third story. Thankfully, they had the presence of mind to go to the water shut-off valve at the street. However, the damage was done andit was extensive. Ceilings fell, hardwood floors buckled, wallpaper slumped, paint blistered, plaster separated from the lathe, and a sewer pipe in the basement cracked. Not only did I have a written and photographic inventory of the contents, but I also had a complete photographic record of the restoration process. I credit my mother and my first insurance agent, Larry Baumwald, for encouraging me to complete a thorough contents inventory. The second inventory was pure luck; it existed because the pictures were somewhat of an ego trip documenting my restoration work and progress. Moral of the Story: Know your insurance agent; document your property; protect your property with the correct insurance policy; and take in-progress renovation photographs. 2. August 1986 – While I was in the hospital giving birth to my son, a vicious drought in Virginia was broken by four days of drenching downpour. We had just moved from Atlanta and were staying in a family vacation property. All our worldly possessions, business and personal, were stored in a local storage facility. After spending several days in the hospital due to complications for mom and baby, I went to check on our stored property. The unit had leaked copiously, so bad in fact that the oriental rugs were sprouting mushrooms and soaked boxes had toppled and broken several pieces of 18th century American furniture. The resulting damage was five figures! I had an “Inland Marine Policy,” e.g., everything was scheduled and insured for full replacement value. And again, I was indebted to my first agent, who had insisted that I have this policy. The antiques were restored by a restoration expert; the rugs were replaced with those comparable in age and design. I was made whole because I had the right insurance and my agent had a photographic inventory of all the contents, prior to our relocation. Moral of the Story: Know your insurance agent; document your property; and protect your property with the correct insurance policy. 3. March 1994 – I owned an Equestrian Riding Academy and Boarding Operation. One of my employees stole and pawned several pieces of my business equipment. Apparently, sometime later the pawn broker became suspicious, and alerted the police. My equipment was returned to me by the police because they found the pawn tickets in my employee’s home and the identifying marks on the equipment proved my ownership. The identifying marks were backed up by an inventory inclusive of a comprehensive description, model numbers, and serial numbers. Moral of the Story: I credit the University of Georgia Campus Police Department for educating me about this tactic during student orientation my first semester in college. Inventory and mark your property with an etching device or an ultraviolet marker pen. Police routinely check for identifying marks on stolen property. National statistics indicate that less than 7% of stolen property without identifying marks is returned to its rightful owner. 4. May 1996 – Our recently purchased house was undergoing renovation, and the contractor was behind schedule, so the mover delivered our household contents, storing them in the garage and finished rooms. While I was picking my son up from the airport, an employee of an independent contractor installing carpet in the new house rifled through a number of boxes labeled only with the mover’s ID number. He helped himself to several valuable items and left. Regrettably, my spouse, who preceded me in the move, handled the new insurance policy and failed to transfer our Policy Rider from the old homeowner’s policy to the new homeowner’s policy. The end result was a total loss. Moral of the Story: When changing insurance agencies take all your previous paperwork with you. Communicate with your spouse, business partner or planning team members to insure a smooth transition. 5. 1979, Genealogy – I was extremely interested in my family history as a teenager and young adult. In the pre-digital era, my mother had a local photographer make negatives of photographs depicting several generations of my maternal and paternal extended family and print them for me as a Christmas present; a present I still cherish decades later. Today, digital negatives made and stored off-site insure that families don’t lose touch with their roots. Moral of the Story: Having off-site copies of valuable family images will insure that you have a treasure trove to share with your children and grandchildren. 6. December 14, 2002 – The storm of the century blew through western Nevada; the winds were clocked at 132 mph prior to reaching my ranch. My house barely survived; and only because half the dwelling had 18” thick adobe walls. A four inch layer of desert alkali covered everything inside the dwelling because the sustained winds caused the window and door seals to fail. My outbuildings, wheel-lines, well pumps, electrical sub-stations, and farm equipment fared even worse. When I opened the door to my house, after the wind died down sixteen hours later, I literally did not recognize my ranch. Once orderly alfalfa fields were strewn with roofing material, splintered boards, mangled wheel lines, baling twine, and all manner of unrecognizable flotsam and jetsam. Electrical substations had literally been ripped off their foundations; outbuildings were either without roofs or flattened altogether; 3000 gallon fertilizer tanks had simply disappeared; and several tractor tires had been slashed to smithereens by flying debris. I remember thinking I could laugh or cry, and in an effort to be light-hearted I clicked my heels and literally said out loud: “Dorothy! You’re not in Kansas anymore!” It would get worse. My ranch policy was a perils policy, which mainly covered fire and theft, not wind damage. I thought all my equipment and the damage to the contents of my home were covered; they were not. I would receive a check for approximately 6% of my losses. Moral of the Story: Read your policy from cover to cover when it is issued to make sure you are getting what you need. Never make assumptions. Ask about Wind Coverage if you think you might need it. 7. Caregivers – When I was a little girl, I was intrigued by my grandmother’s spoon collection. The spoons were arranged on an étagère-like piece which hung in her dining room. One spoon in particular has always stuck in my mind. It was the only remaining piece of my great-grandmother’s sterling silver flatware. My grandmother always lamented that it was too late when she realized what had happened.Great-Grandma’s caregivers had walked off with everything! Moral of the Story: Let in-home and assisted living caregivers know that a photographic inventory has been completed. It will save a lot of heartache. 8. The 2007 Executrix Nightmare – The aunt of a dear friend of mine recently passed away in southern California. An acquaintance of the deceased declared to the family that she had been appointed the Executrix of the estate, but flatly refused to produce the will, provide supporting documents, provide the name of the attorney who prepared the will, or commence Probate. Subsequent investigation has revealed that the Executrix disposed of the household contents, put the house up for sale prior to the deceased’s death, and gave away the deceased’s intellectual property; valuable unpublished manuscripts. Even though the state of California has very specific and stringent statutes dealing with Probate, the Executrix’s actions, particularly the failure to produce the will, file the will, and the failure to file an estate inventory, required under California law, have prompted the family to retain an attorney to sort out the situation. Moral of the Story: Inform your family of your wishes before it is too late. Provide your family with your attorney’s name and contact information. 9. A Reno, NV Legend = What Not To Do! – Don’t be like Lavere Redfield, the eccentric Reno, Nevada millionaire who, at his death in 1974, had over 17 tons of uncirculated silver dollars hidden behind a false wall in his basement. He left instructions in his will not to tell the IRS! He should have known better, after the time he served in 1960 for income tax evasion. In 1963, his house was burglarized, and it was reported that approximately 100,000 of the silver dollars were stolen. That is probably what encouraged him to build a false wall in front of his coal bin. The IRS was on his doorstep after his death and went through his home on Mt. Rose Street. Once they broke through the wall, they hauled away the silver dollars in armored cars. After the auction, Uncle Sam got a huge cut of the $7.3 million proceeds.The estimated value of the uncirculated silver dollar collection was over $20 million. Moral of the Story: The IRS has a long memory and more money could have gone to his family and heirs if he had used the services of an estate planning attorney.SECTION 1Why Do An Asset Inventory?BECAUSE ACCURATE COMPLETE KNOWLEDGE =ULTIMATE PROTECTION! It is the rare person who goes through life without being thrown a curveball or two. Wildfires, earthquakes, tornadoes, hurricanes, and floods destroy the property of thousands of individuals, business owners, and communities every year. Divorce often results in the loss or sale of family heirlooms where assets have been co-mingled or were not properly documented as separate property. Taxes are paid that might have been avoided when an estate plan is not comprehensively designed to meet changing tax laws. The elderly and disabled suffer at the hands of dishonest caregivers who help themselves to property which does not belong to them.In this section the author explores the beneficial outcome which will result from completing a thorough asset inventory. The author poses a series of thought provoking questions followed up by comprehensive yet succinct answers. The questions are devised to assist the reader in formulating a wealth protection strategy that fits their individual needs and can be easily adapted to multiple planning applications: insurance, estate, financial, tax, and business. The topics covered proceed in a logical progression: Who needs an inventory? What needs to be inventoried? When should an inventory be updated? Where do you keep an inventory? Why is third party asset validation important? How does one evaluate the members of their planning team? Discussions range from who should have an inventory to what one can learn from conducting an inventory as it relates to insurance, estate planning, tax planning, business planning, and other legal matters such as pre-nuptial agreements, divorce, and protecting the assets of the elderly in caregiver situations. Information is provided about how to find and evaluate an appraiser, estate planner, and insurance agent. The reader is encouraged to get an insurance, estate, tax, and financial planning check-up as a part of the inventory process as well as become familiar with the tough money questions that need to be asked. This section concludes with a discussion of nine immediate benefits derived from doing a personal asset inventory. SECTION 2Planning Your Asset Inventory Everything worth doing requires a game plan backed up by a thorough understanding of the process and the equipment needed to accomplish the task. This section provides time-tested documentation strategies, tips, and techniques to enable the reader to proficiently accomplish the process. All the processes and equipment usage are explained to reach readers with skill sets ranging from novice to knowledgeable. The intention is to interject fun into the process and have the reader walk away with new skills that he or she can use in other aspects of their daily lives. This section provides a straightforward discussion of the basic equipment needed, as well as additional accessories which will make the inventory a more valuable document. It addresses how and where the reader obtains valuations for the property being inventoried and the suggested documentation methods for obtaining a thorough visual record of every type of an asset. The success of any project is determined by the workability of the workspace in which it is accomplished. Workspace set-up and maintenance throughout the project should be based on a game plan incorporating a timeline of tasks to be accomplished and the type of information to be recorded. Therefore, a comprehensive discussion is devoted to how to organize the information you need on-hand, how to organize the information you assemble, and how to archive the data your collect. SECTION 3Doing Your Asset InventoryThe key to a successful inventory is sequentially following a feasible timeline and game plan. To do this the reader must have absolute confidence in his or her equipment and skill level. The book effortlessly walks the reader of all levels through the imaging and database skills needed to accomplish the tasks. The accompanying CD provides visual lessons to cover all the photography techniques covered in the book. The objective is to level the playing field for all skill levels and make the process fun. The photography tips and techniques are geared to enable everyone to take good inventory photographs no matter whether they are using a point-and-shoot, prosumer, conventional SLR, or digital SLR camera. While new subject matter and new techniques may at first appear intimidating, this section will guide the reader gently but quickly through their own learning curve. These lessons will not only ensure an accurate and informational inventory, but will leave the reader with photographic skills suitable for website marketing, marketing a home or business product, and recording beautiful “memories” to share with others. The photo-scanning tips and techniques are geared to create high resolution images suitable for printing from a photo-editing program. Photo-scanning photographs, slides, stamp collections, coin collections, and paper documents provide flexibility in observing detail and re-sizing/up-sizing an image should it be needed to create an “exhibit” for legal purposes. An added benefit of mastering high resolution photo-scans is their ability to be cropped or enlarged when marketing a house or selling a collection.The videography tips and techniques are geared to enable everyone to take information packed video. This section is not about art, but instead stresses how to do a room overview and the techniques necessary to safely obtain information from every nook and cranny in a room or building. The database tips and techniques are designed to effortlessly walk novice to knowledgeable through the inventory database set-up process. Even though a pre-designed inventory template is included on the enclosed CD, this section is included for those who wish to alter or expand upon the template. The template is a no-nonsense approach to recording all the information you need for insurance, estate, tax, financial, and business planning purposes. The beauty of this inventory set-up is that the inventory comes alive with the insertion of images and the ability to link all the data in one place.The more useful tips section is designed to get the reader thinking about all the back-up information and technology they need in their life outside of the inventory. All too often we have the basic information we need on-hand, but fail to apply protection strategies which would make this information more valuable and our lives safer and less complicated. Seven tips are showcased to encourage the reader to evaluate their lives more closely and take precautions which will enhance the quality of their life. SECTION 4:Working With A Pro On Your Asset InventoryDocument Assets To Assure Backup Accounting Secures Everything This section discusses the services and the nine-point guarantee offered by Virtual Image Solutions, LLC in Northern Nevada and Northern California. It is equally applicable to assist the reader in analyzing the services of others offered outside of this area. Additionally, this section includes appendixes, a glossary of terminology, references and resources, and an extensive index of subject matter. Appendix A provides web address, phone number, and physical address for eighty-five (85) appraisal, valuation, and security resources. Appendix B covers four (4) essential techniques for assembling your personal emergency preparedness kit. Appendix C provides a sample inventory timeline based on a 2400 square foot house. Appendix D provides a sample page from the pre-designed inventory template included on the CD. The glossary covers sixty-nine (69) inventory terms and definitions the reader needs to know for insurance, estate, tax, financial, and business planning. The references and resources section provides fifty (50) web address, phone number, and physical address for bibliographical references and resources cited in the text. A comprehensive index provides topic specific pagination.
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How To Create A Photo Asset Inventory And Protect Your Investments From A Catastrophic Loss
By Lizz Stanley
Following on the heels of what seems an annual increase in catastrophic natural disasters, such as the 2007 and 2008 California Fires; Hurricane Fay, Gustav, and Ike in 2008; the devastating 2008 Midwest floods; the 2008 tornadoes in the Midwest and in Virginia; and the 2008 earthquakes in Nevada and Illinois, How To Create A Photo Asset Inventory provides readers with information and resources destined to improve their capacity to make informed decisions regarding risk exposure and disaster awareness and preparedness when attempting to protect their standard of living and their loved ones.
Natural disaster, an uncertain economy, the ambiguity in insurance coverage in determining which came first the flood or the wind event, and tentative estate tax law modifications scheduled to sunset in 2010 are just some of the dilemmas which create an unappetizing recipe for a personal or business tragedy without a well-designed life plan. Additional benefits will be realized by the reduction in widespread complacency towards disaster preparedness; consumers will become more accountable to themselves and their community through better preparation; and local governments, FEMA, and the American Red Cross will be able to provide a more rapid recovery at a more effective and economical cost, so that disaster stricken communities will be able to rebuild more quickly, before lost property and sales tax revenue further stifles the local and regional economy.
Ask people to visualize a relaxing condition, and they imagine the soothing sounds of a fire crackling in the fireplace, waves breaking along the shoreline, and leaves rustling in the wind. Nobody comes up with a hurricane, tornado, earthquake, or wildfire. Ask people to relive enjoyable memories, and they reminisce about their wedding day, the birth of a child, and vacations they have taken. Nobody comes up with being burglarized, the death of a loved one, a natural disaster, or their house burning to the ground.Being relaxed and getting the most enjoyment out of life is all about the choices we make; the winning strategies we utilize; and the safety nets we create and put in place to protect ourselves, our families, and the fruits of our labor. In the event of a catastrophic natural disaster, a fire, or the death of a loved one will the reader’s safety net be strong enough for a safe landing? Most people spend their whole lives building wealth that can be swept away in minutes. All too often people fail to plan for a catastrophic event because they think it will never happen to them. If the reader thinks it won’t happen to them; think again. Wildfires, earthquakes, tornadoes, hurricanes, and floods destroy the property of thousands of individuals, business owners, and communities every year. Every ten seconds a home is burglarized in the United States, and it is estimated that seventy percent of the population does not have a living will or an estate plan.Ask most people if their safety net has holes in it and they will answer yes. The excuses for failing to document personal and business property range from: “I don’t have the time to do it” to “I don’t know how to do it.” How To Create A Photo Asset Inventory, by Lizz Stanley, provokes homeowners, business owners, and renters of all ages to take control of their financial lives, become organized, and have fun while learning new skills which can be used to improve many areas of their everyday lives. Will a consumer be able to prove 100% of their losses and receive full reimbursement from their insurance claim? Completing a pre-disaster inventory takes discipline and planning, but when compared to a forensic inventory, an inventory after the fact, it is far less agonizing, time consuming, and emotionally devastating. In the event of the death or disability of the reader, a spouse, or family member, does the family have a golden parachute or will their standard of living take a freefall? Will the deceased or their family be able to bypass the costly and time-consuming probate process, limit the taxable estate, or provide long-term care and financial stability for family members? Having an inventory as a part of a living will and an estate plan will insure that wishes are followed, tax minimizing strategies are employed, and the elderly or disabled do not suffer at the hands of dishonest caregivers who help themselves to property which does not belong to them.Will the consumer be able to document the dollar amount of a loss to take a deduction on their tax return? Completing an inventory and valuing property before it is lost will provide the necessary “burden of proof” for the IRS during an otherwise stressful time.How To Create A Photo Asset Inventory is a book for all consumers, business owners, and practitioners alike. The book is designed for those who want to get organized and develop multi-faceted life planning skills and strategies. This time-tested method will simplify their lives; enable them to get control of the things they own; and address questions that need to be answered to craft a valuable documentation tool for insurance, estate, tax, financial, and business planning. Every How To Create A Photo Asset Inventory tip will move the reader closer to accomplishing their organizational and financial goals, while having a lot of fun and learning new skills in the process.However, it is not only consumers and business owners who will benefit from this book, but insurance, estate, tax, financial, and business planners who wisely utilize these concepts to more effectively communicate with their clients. Divulging the extent of one’s net worth to a stranger is a tough topic for most people to talk about. The key points and questions in this book can be utilized to open a line of communication which will ensure an honest and ongoing relationship between consumer and practitioner. The true intent of this book is to propel homeowners, business owners, and renters, into action and educate each of these individuals for preparedness. While an accurate home and business asset inventory should be a part of everyone’s disaster preparation plan; until now a step-by-step inventory blueprint, timeline, and training in digital applications has been unavailable. The process is laid-out in a straightforward manner to efficiently accomplish an inventory which incorporates photography, videography, photo-scanning, and the use of a pre-designed digital database which incorporates written descriptions digitally linked with thumbnail images of images, receipts, and appraisals. The information is presented in a user friendly format using visual tools to assist in the process. The information and resources provided in How To Create A Photo Asset Inventory are destined to improve a consumers’ capacity to make informed decisions regarding risk exposure when attempting to maintain their standard of living and that of their family. Additional benefits will be realized by the reduction in widespread complacency towards disaster preparedness; an alteration of the prevailing perception that a government bailout is an inalienable right in the absence of a proper plan; and a reduction in the occurrence and expense of litigation between the consumer and the insurance industry. In the event of a disaster, if consumers are accountable to themselves and their community through better preparation, the local, state, and federal government will be able to provide a more rapid recovery at a more economical cost. This will have the added benefit of making the efforts and expenditures of government agencies such as FEMA and quasi-government agencies such as the American Red Cross more effective so that disaster stricken communities will be able to rebuild more quickly, before lost property and sales tax revenue further stymies the local and/or regional economy.
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