Inventory and Valuation of Estate Assets
After probate has been opened and a personal representative is appointed, one of the most important responsibilities is preparing a complete inventory of estate assets and determining their value as of the date of death.
This step forms the financial foundation of the entire probate process. It affects creditor payments, tax reporting, court approvals, and final distributions to beneficiaries.
What Must Be Included in the Inventory
The inventory must include all assets that are subject to probate.
- Real estate titled solely in the decedent’s name
- Bank and brokerage accounts without beneficiary designations
- Business interests
- Vehicles and recreational assets
- Personal property of significant value
Assets Not Included in Probate Inventory
- Trust-owned assets
- Life insurance with named beneficiaries
- Retirement accounts with beneficiaries
- Jointly owned property with right of survivorship
These assets transfer by operation of law and are not part of the court-supervised estate.
Valuation Requirements
California law requires that certain assets be appraised by a court-appointed Probate Referee.
- Real property
- Business interests
- Collectibles and valuable personal property
The Probate Referee provides an independent valuation used for court filings and tax reporting.
Why Accuracy Matters
Incomplete or inaccurate inventories can result in:
- Delays in court approval
- Creditor disputes
- Tax complications
- Potential personal liability for the executor
Important: Asset values are generally determined as of the date of death — not the date of sale or distribution. Valuation errors are usually fixable, but must be corrected promptly.
What Happens After the Inventory Is Filed
Once the court accepts the Inventory and Appraisal, the estate can move forward with resolving creditor claims and paying valid debts.
The next chapter explains how creditor claims are handled and prioritized.