What’s Involved in an Estate Inventory?

If you’re named as executor of an estate, you will be tasked with identifying all the assets of the decedent. Let’s look at some of the options you may have for identifying assets:

  • The deceased’s will if they have one
  • Their financial statements or legal documents
  • Their recent tax returns
  • Abandoned asset database searching; and
  • A public property records search.

Yahoo Finance’s recent article entitled “What Is Included in an Estate Inventory?” says you may also be able to find assets for an estate inventory by talking to the decedent’s financial advisor, estate planning attorney, or relatives. An executor must be as thorough as possible, so the final inventory list submitted to the probate court is accurate and complete.

If you’re planning your estate, you can make this job easier for your executor by creating an estate inventory yourself. Keep a copy of this inventory with a copy of your will, if you have one in place. (If you don’t have a will, draft one sooner rather than later.) If you pass without a will in place, your assets would be distributed according to state law.

If you’re making an inventory of your estate, include the types of assets for which an executor might search. Depending on your financial situation, your personal estate inventory might include:

  • A 401(k) plan or similar employer-sponsored retirement plan
  • Traditional or Roth IRAs
  • Business retirement accounts, such as a solo 401(k) or SEP IRA if you’re self-employed
  • Taxable brokerage accounts
  • A Health Savings Account (HSA)
  • College savings accounts
  • Life insurance policies
  • Bank accounts
  • Vehicles
  • Real estate and land
  • Personal possessions that are valued at $500 or more; and
  • Family heirlooms, antiques, or collectibles.

The executor’s job can be simplified by making a list of any liabilities or debts that you owe. This can include a mortgage on your home, auto loans, private student loans, credit cards, installment loans, business loans, tax liens, medical bills and personal loans. Once you complete your personal estate inventory you may want to file a copy of it with your estate planning attorney. Review your inventory annually to make certain that it’s up to date.

Knowing what’s included in an estate inventory can make your job as an executor easier. If you submit an incomplete inventory, it may delay the probate process.

Reference: Yahoo Finance (Feb. 15, 2022) “What Is Included in an Estate Inventory?”

How Do I Conduct an Estate Inventory?

When a loved one dies, it may be necessary for their estate to go through probate—a court-supervised process in which his or her estate is settled, outstanding debts are paid and assets are distributed to the deceased person’s heirs. An executor is tasked with overseeing the probate process. An important task for an executor is submitting a detailed inventory of the estate to the probate court.

Yahoo Finance’s recent article entitled “What Is Included in an Estate Inventory?” looks at the estate inventory. During probate, the executor is charged with several duties, including collecting assets, estimating the fair market value of all assets in the estate, ascertaining the ownership status of each asset and liquidating assets to pay off outstanding debts, if needed. The probate court will need to see an inventory of the estate’s assets before distributing those assets to the deceased’s heirs.

An estate inventory includes all the assets of an estate belonging to the individual who’s passed away. It can also include a listing of the person’s liabilities or debts. In terms of assets, this would include:

  • Bank accounts, checking accounts, savings accounts, money market accounts and CDs
  • Investment accounts
  • Business interests
  • Real estate
  • Pension plans and workplace retirement accounts, such as 401(k)s, 403(b)s and 457 plans
  • Life insurance, disability insurance, annuities and long-term care insurance
  • Intellectual property, such as copyrights, trademarks and patents
  • Household items
  • Personal effects; and

Here’s what’s included in an estate inventory on the liabilities side:

  • Home mortgages;
  • Outstanding business loans, personal loans and private student loans;
  • Auto loans associated with a vehicle included on the asset side of the inventory
  • Credit cards and open lines of credit
  • Any unpaid medical bills
  • Unpaid taxes; and
  • Any other outstanding debts, including unpaid court judgments.

There is usually no asset or liability that’s too small to be included in the estate inventory.

Reference: Yahoo Finance (Feb. 15, 2022) “What Is Included in an Estate Inventory?”