An inventory of probate assets is important because it catalogues all of the assets held within an estate. It occurs after a probate administration is opened with the court and an executor is appointed to help administrate the probate on behalf of the estate.
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What is an Inventory of Probate Assets?
When probate is opened, one of the first matters that gets handled is an inventory of the estate assets, after an executor of the estate is selected. An inventory of probate assets refers to the collection of all the assets of the decedent’s estate. The inventory and appraisal of the decedent’s estate determines the value of the estate as of the date of the decedent’s death. The probate process cannot move forward if inventory is not taken. After taking inventory, the executor presents the inventory to the probate judge and then the estate starts being administered.
Importance of taking inventory of probate assets
Without taking into consideration the inventory of probate assets, the executor cannot determine how to successfully administer the estates with each creditor and beneficiary getting what should be due to them. Taking inventory of the total assets of the deceased helps to know the total value of the estate that the deceased left behind.
Timeline for an inventory of probate assets
The timeline for taking inventory of the estates of the deceased varies from state to state. However, in most states, the inventory must be taken within 60 days after the letters of administration have been received. The timeline can vary based on the state in which the probate takes place and their individual state probate laws.
Inventory of assets timeline for California compared to Florida is different because the court grants 4 months in California for the inventory of assets to take place whereas in Florida the court only gives 60 days for the inventory of assets to take place once the letters of administration are granted.
How inventory of probate assets works
The process of taking inventory of probate assets is one of the most tedious stages of probate. It starts with the executor creating a separate and independent account for all the liquid assets and investments of the deceased.
Once the account has been created, all the liquid assets (cash), investments and ROIs due would be transferred to that account. The executor will also get the landed and fixed assets appraised to determine the real value of the decedent’s estates.