I was sitting in a seminar about Estate Planning on Friday when the speaker said something that really stuck with me, but I am not sure what to do with this lingering feeling. So I did what anyone who owns a blog would do, I decided to write a small post about it, with the hopes that a reader out there can help me out.
The key-note speaker was discussing estate liquidity and asked whether everyone knew the difference between value and worth?
Value vs Wealth
He went on to explain that value is a term that is denoted in feelings, while worth is an actual monetary term. I think this random clock collectible sums it up best,
What is the difference between the meaning of the word “value,” and the word “worth?” In the universe of collectors and collectibles such a distinction may have merit. The term “value” is an emotionally laden term; it references perceived-value, as evidenced from the perspective of the owner or possessor of something.
You may have invaluable heirloom that is essentially worthless to others (think: that random weird needle point your mom or grandma made) OR you could have an item that is worth a lot but has zero or even negative value to you (think: that weird teapot that your dad left behind before he skipped town).
This lead me to thinking, and I hope you can help me out,
Which would you rather have? Items of Worth or Items of Value? A combo? Neither because you are a minimalist?
Side note: if you were wondering what this had to do with estate taxes – it is because you could have someone worth A LOT but if all they have to pay off their taxes are valuable ‘things’ you may have a problem.