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An estate inventory needs to be detailed, specific, and with a corresponding fair market value. It must include all principal received, together with realized increases and decreases.
Value of the Estate
When a proposed executor or administrator files the petition for probate or administration, a section in the petition includes the value of the personal property and real property of the decedent. The value indicated in this petition refers to the probate estate that the proposed executor or administrator estimates it will administer.
Once the petition for probate or administration is granted, the executor or administrator is granted letters testamentary or of administration. The executor or administrator is then mandated to file an inventory of assets within six (6) months from appointment.
Inventory of Assets Filed with the Court
The inventory of assets filed with the court within 6 months from the issuance of letters is a simple one-page form that includes both estate and non-estate assets. It must indicate the total estate assets, and for each class of assets (i.e., real estate, stocks and bonds, insurance payable to estate, IRAs and 401Ks payable to estate, mortgages held by decedent, cash, miscellaneous, and firearms), the executor or administrator must indicate the category of value i.e., by the following categories:
- below $10,000
- $10K to $20K
- $20,000 to $50,000
- $50,000 to $100,000
- $100,000 to $250,000
- $250,000 to $500,000
- over $500,000
The executor or administrator must also indicate the non-estate assets, such as whether there is a living trust, gifts made within 3 years of decedent’s death, jointly held property, insurance and other accounts payable to beneficiaries, annuities, powers of appointment, or any other cause of action pending.
This inventory of assets filed with the court is not detailed and specific, but general, simply for the purpose of computing estate tax, or whether the estate is liable for such tax.
Inventory to Beneficiaries
The specific and detailed inventory, together with its corresponding fair market value, is usually submitted to the beneficiary during accounting proceedings. It may, however, be given prior to accounting simply for the beneficiary’s reference.
Usually, at that time, most, if not all, of the inventory would have already been sold and the proceeds deposited into the estate account. Thus, the specific and detailed inventory during accounting proceedings must contain the date the principal was received, the source of the principal, and the value. Realized increases and decreases of the principal are also reported. Here, the beneficiaries can object to the accounting, which includes objecting to the amount reported in the principal received. Most objections relate to the sale of a property below market value.
Inventory matters may be complex, depending on the circumstances of the case. Should you need assistance in filing an inventory or accounting, we at the Law Offices of Albert Goodwin are here for you. We have offices in New York City, Brooklyn, NY and Queens, NY. You can call us at 212-233-1233 or send us an email at [email protected].
About the Author
Albert Goodwin Esq. is a licenced New York attorney with over 17 years of courtroom experience. His extensive knowledge and expertise make him well-qualified to write authoritative articles on a wide range of legal topics. He can be reached at 212-233-1233 or [email protected].
