How to Make an Inventory for Court in a Probate Case

by Terry White

If you’re making an inventory for probate, then you’re likely the executor or administrator of an estate. You’re charged with shepherding the estate through probate – the legal process of paying the estate’s debts and turning over the deceased’s property to the proper heirs. A judge oversees probate, but you’re responsible for doing the footwork. Because laws and practices vary, check your state’s laws to determine specific requirements for probate inventory.

Locate the Assets

Before you can pay debts and distribute property to heirs, you must know what the estate owns. To locate estate assets, the executor or administrator must think like a detective. Track down and list the property of the deceased, then give your tally to the court. You have a set time frame to accomplish this task. If you find additional property after submitting your inventory to the court, you need to file an addendum. The search for assets is typically the most time-consuming part of the executor’s job.

Types of Assets

Look for items such as bank and business records, income tax returns, insurance policies, credit card statements, securities, retirement and brokers’ statements, deeds and mortgages. You also need information about all types of valuables, including jewelry, art and vehicles. The only way to do find potentially “hidden” property is to sift through the deceased’s possessions. This does not mean you must account for each item, such as a blender, toaster and dishes. Broad categories such as “kitchen items” are sufficient.

Assets You Can Ignore

Probate assets are those that pass through the estate. Non-probate assets do not. These assets generally come with self-contained beneficiaries, such as life insurance policies and retirement accounts. Jointly owned real estate and bank accounts are also non-probate assets, because title passes to the surviving owner at the deceased’s death Because an executor or administrator is only concerned with probate assets, in most cases you need not worry about those that pass outside the estate.

Valuing Assets

The executor or administrator can use a variety of tools to determine the fair market value of the deceased’s assets. In some cases, this is easy. For example, a retirement account has a specific value listed on the account statement. Other property, such as an antique diamond broach, needs to be professionally appraised. An asset’s value is its fair market value on the date of death, not the date you make the inventory. That’s because some property might not have a consistent value. For example, stocks can dramatically increase or decrease in price from one day to the next.

Executor's/Administrator's Duty

An executor or administrator is required by law to manage an estate and its assets prudently. Some states impose a duty to diversify the estate’s investments for safety and rate of return. The executor or administrator should decide whether to hold assets or invest them elsewhere to minimize risk. Invest the estate’s money, stocks, bonds or mutual funds with care and skill; he can be held liable for losses to estate assets if he acts negligently.

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