An inventory is one of the many responsibilities of the personal representative. The inventory is a list of all of the property solely owned by the decedent, including the decedent’s interest in tenants in common property (property that the decedent had a undivided interest in with at least one other person, with no right of survivorship).
When does the inventory need to be filed?
The inventory must be filed within 90 days after the appointment of a personal representative.
What exactly goes into preparing and filing an inventory?
An inventory needs to list each item that the decedent owned, whether fully or partially. Each item requires:
- A reasonably descriptive detail about the item;
- A fair market value at the time of the decedent’s death;
- Any type of mortgage or encumbrance (burden or obstruction) that may exist with the property.
For real and leasehold property (mainly houses and land/temporary rights to houses and land) a description needs to be sufficient enough to identify the property.
What can a personal representative appraise?
As a personal representative, you may appraise the following:
- Motor vehicles- a personal representative may appraise the vehicle according to the average value set forth in: (a) The National Automobile Dealers’ Association official used car guide; or (b) any substantially similar price guide designed by the register;
- Stocks listed on a national or regional exchange or over the counter securities;
- Debts owed to the decedent, such as: bonds, notes and loans made by the decedent to others which have yet to be paid;
- Bank accounts and any additional money;
- IRA’s, annuities and life insurance proceeds payable to the estate which have no named beneficiary; and
- Real and leasehold property- a formal appraisal is not necessary, however, this property may be valued at: (a) the full cash value for property tax purposes for the most recent date of finality, or (b) the contract sales price for the property (the sale must be equitable, and occur within one year after the decedent’s death).
The appraisal may not contain the word “approximate” or any other similar word.