An estate inventory and appraisal is the formal document an executor or administrator files with the probate court listing every asset the decedent owned that passes through probate, along with each item’s fair market value on the date of death. Most jurisdictions also require the representative to report the estate’s debts on the same filing. The valuations drive everything that follows: whether the estate can pay its creditors, how much tax is owed, what each heir actually receives, and whether the representative can be held personally liable for errors.
What Belongs on the Inventory
Only property without an automatic transfer mechanism goes on the list. That typically means real estate titled solely in the decedent’s name, vehicles, furniture, artwork, and financial accounts with no beneficiary designation or payable-on-death instruction. A fractional share held as a tenant in common belongs on the inventory too.
Several categories skip probate entirely and should not appear:
- Property held in joint tenancy with right of survivorship, which passes to the surviving owner by operation of law.
- Assets held in a living trust, which transfer under the trust’s terms.
- Life insurance proceeds and retirement accounts with named beneficiaries.
Misidentifying any of these as probate assets wastes time and confuses the court’s accounting. Verify ownership of each item against deeds, titles, bank statements, and account agreements before you list anything. A bank account can look like estate property until you discover a payable-on-death beneficiary was added years ago.
Digital Assets Count
Cryptocurrency wallets, online brokerage accounts, domain names, digital media libraries, loyalty program balances, and revenue-generating social media accounts are all estate property. Value crypto at its date-of-death price, the same as any other financial asset. Nearly every state has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which gives executors a legal path to request access from platform providers, but without login credentials or clear authorization, platforms routinely refuse. Search the decedent’s email, devices, and paper records for account information early.
Debts Go on the Inventory Too
Most jurisdictions require the representative to report the decedent’s outstanding debts alongside assets: mortgages, car loans, credit card balances, unpaid taxes, and medical bills. Debts secured by a specific asset (a mortgage on real property, for instance) are typically noted with that asset so the court sees net equity. Unsecured debts are listed separately.
For each debt, record the creditor’s name, the account number (last four digits are usually enough), and the balance owed as of the date of death. Omitting liabilities doesn’t erase them. Creditors have their own window to file claims, and an incomplete debt list will hold up the proceeding when those claims surface.
How to Describe Each Asset
Most courts provide a standardized inventory form through the probate clerk’s office or website. Format varies by jurisdiction; the substance does not.
Real property needs a full legal description, meaning the parcel number and boundary information from the recorded deed, not just the street address. Bank and investment accounts require the institution’s name and the last four digits of the account number. Vehicles need make, model, year, and VIN. High-value personal property such as jewelry, art, or collectibles needs enough detail to distinguish one item from another.
Ordinary household goods and furniture generally don’t need item-by-item entries unless a particular piece has significant value. Most courts accept a single grouped entry for routine household contents, valued at what those items would bring at an estate sale rather than what they cost new. A living room set that cost $5,000 a decade ago might be worth $300 at resale, and resale is the correct figure.
How to Value Each Asset
The standard for every asset on the inventory is fair market value on the exact date of death. Federal law defines this as the price at which the property would change hands between a willing buyer and a willing seller, neither under pressure to complete the deal. That same figure serves both the probate court and the IRS.
Cash, bank balances, and publicly traded securities are straightforward. Look up the balance or closing stock price on the date of death and report it. These are sometimes called self-appraised items because no outside expert is needed.
Everything else usually requires a professional appraisal: real estate, business interests, antiques, fine art, jewelry, and collectibles. Some states go further and require a court-appointed appraiser (often called a probate referee) rather than letting the executor choose one. The court-appointed system exists to prevent conflicts of interest. Personal property appraisers typically charge by the hour; court-appointed appraisers in some states charge a percentage of appraised value. Either way, appraisal fees are a legitimate estate expense paid from estate funds.
Business Interests
If the decedent owned an interest in a closely held business, partnership, or LLC, that interest belongs on the inventory. Valuing it is harder than looking up a stock price because there is no public market. An appraiser will examine the company’s financial statements, earning history, industry outlook, and the size of the ownership stake relative to the whole. Minority interests are often worth less per share than controlling interests because the holder can’t direct the company’s decisions. If a buy-sell agreement fixes the price of a departing owner’s interest, give it to the appraiser, though its price may not automatically control the value reported for tax purposes.
Specialized Collections and High-Value Items
Rare coins, fine art, antique firearms, vintage cars, and similar collections need appraisers with specific expertise in that category. A general real estate appraiser is not qualified to value 19th-century oil paintings. The Uniform Standards of Professional Appraisal Practice set separate rules for personal property appraisals, and the IRS may reject valuations that don’t follow recognized methodology. For any single item or collection worth more than $5,000, the IRS requires a qualified appraisal attached to the estate tax return.
Why the Numbers Carry Tax Consequences
Inventory values don’t just satisfy the probate court. They directly affect what heirs owe when they eventually sell inherited property, and they set the baseline for any estate tax calculation.
Stepped-Up Basis
When someone inherits property, their tax basis resets to fair market value at the date of death. If a parent bought a house for $150,000 and it was worth $400,000 when they died, the heir’s basis for capital gains is $400,000, not $150,000. Sell it for $410,000 and the taxable gain is $10,000.
An executor who undervalues an asset to simplify probate is quietly saddling heirs with a larger taxable gain later. The IRS can impose accuracy-related penalties on heirs who report a basis higher than the estate tax value, so the numbers need to be defensible from the start.
Federal Estate Tax and the Alternate Valuation Date
For deaths in 2026, the federal estate tax basic exclusion amount is $15,000,000 per individual, so estates below that threshold owe no federal estate tax. Married couples can effectively shelter up to $30,000,000. The 40% rate applies only to amounts above the exclusion. Most estates fall well below the line, but the inventory is still the foundation of any estate tax calculation, and some states impose their own estate taxes at much lower thresholds.
If asset values drop significantly in the months after death, the executor may elect to value the entire estate six months after the date of death. The election is only available when it would reduce both the gross estate and the total estate tax, and it must be made on the federal estate tax return. Once made, it applies to every asset and can’t be reversed. Property sold or distributed inside that six-month window is valued as of the date it left the estate.
Filing the Inventory
Once valuations are complete and the forms are signed, the representative files the inventory with the probate court. Most jurisdictions set the deadline somewhere between three and six months after the court issues letters of administration or letters testamentary. Missing it invites consequences ranging from a show-cause hearing to removal. Confirm the exact deadline with the local clerk, because it varies by state.
Filing means submitting the documents to the probate clerk with a processing fee. Fees vary by jurisdiction, and some courts accept electronic filing. If more time is needed, most courts allow a motion to extend, though the representative usually must explain why, and some courts charge a separate fee for the motion.
After the clerk accepts the inventory, the representative must send copies to all interested parties, including beneficiaries, heirs, and known creditors. That notice lets everyone review the valuations and raise objections. Proof of delivery must also be filed with the court.
Assets Found Later and Disputed Values
Finding property after the inventory is filed happens more often than executors expect. A forgotten bank account, an unexpected tax refund, or real estate in another state can surface months later. When it does, the representative files a supplemental inventory reporting the newly discovered assets and their values. The court treats it as an amendment, not negligence, as long as the representative acts promptly. If the estate has already been closed, reopening it is more involved and usually requires petitioning the court.
Any interested person, whether a beneficiary, heir, or creditor, can formally challenge the inventory if they believe an asset is missing or valued incorrectly. The challenge takes the form of a written complaint filed with the court, specifying exactly which item is disputed and why. The court then orders the executor to appear and explain the valuation. If the court agrees the valuation is off, it can order corrections or appoint a new appraiser. For missing assets, the court can compel a supplemental inventory within a set period. Executors who ignore these orders risk being held in contempt or removed.