Estate Inventory

An Estate Inventory in the United States sets out a written record of the details it captures.

The legal obligation to prepare and file an estate inventory arises under each state's probate code. The Uniform Probate Code (UPC), adopted in whole or in part by approximately 20 states including Alaska, Arizona, Colorado, Idaho, Michigan, Minnesota, Montana, North Dakota, South Dakota, and Utah, requires executors to prepare and file an inventory of estate assets within three months of appointment. Non-UPC states have their own probate codes with varying deadlines — California Probate Code Section 8800 requires filing within four months of appointment; Florida Statutes Section 733.604 requires filing within 60 days; Texas Estates Code Section 309.051 requires filing within 90 days.

For federal estate tax purposes, an estate with a gross value exceeding the applicable exclusion amount — $13.61 million per decedent in 2024, adjusted annually for inflation — must file Form 706 (United States Estate (and Generation-Skipping Transfer) Tax Return) with the IRS within nine months of the date of death, extendable by six months. The estate inventory provides the foundational data for Schedule A through Schedule I of Form 706, which requires a detailed description and fair market value of every asset category: real estate (Schedule A), stocks and bonds (Schedule B), mortgages and notes (Schedule C), cash (Schedule D), life insurance (Schedule D), jointly owned property (Schedule E), other miscellaneous property (Schedule F), and transfers during decedent's life (Schedule G and H). Even estates that are not taxable at the federal level may be subject to state estate or inheritance taxes in states including Massachusetts ($2 million threshold), Oregon ($1 million threshold), and New Jersey (inheritance tax on transfers to non-immediate-family beneficiaries).

The income tax basis of assets inherited from a decedent is generally adjusted to fair market value at the date of death under IRC Section 1014(a) — the 'stepped-up basis' rule. An accurate estate inventory establishing the date-of-death values of all inherited assets is therefore essential for the beneficiaries' future income tax planning, because the stepped-up basis determines the gain or loss on any subsequent sale of inherited property. The Tax Cuts and Jobs Act of 2017 preserved the stepped-up basis rule for most inherited assets, though proposals to modify or eliminate it have been periodically introduced in Congress.

An Estate Inventory is needed whenever a person dies leaving assets that must pass through probate administration, and also serves important functions in non-probate estate administration contexts.

Probate estate administration is the primary context. When a person dies with a will (testate) or without a will (intestate), the personal representative — executor named in the will or administrator appointed by the court — must file an inventory of all probate assets with the probate court within the state-specific deadline. The inventory is the court's primary tool for supervising the administration of the estate and protecting the interests of creditors and beneficiaries. Courts in supervised administration jurisdictions review the inventory carefully and may appoint an independent appraiser to verify asset valuations.

Federal estate tax reporting requires an asset inventory even for estates not subject to probate supervision. A decedent's estate with gross assets exceeding the $13.61 million federal exclusion (2024) must file Form 706 with the IRS, which requires a detailed Schedule of every asset category. The estate inventory provides the underlying data and appraisals needed to complete Form 706 accurately. Undervaluation of estate assets on Form 706 can result in substantial underpayment penalties under IRC Section 6662, which imposes a 20% accuracy-related penalty on underpayments attributable to substantial valuation misstatements.

Revocable living trust administration does not require a court-supervised probate inventory, but the successor trustee has fiduciary duties to trust beneficiaries that include the duty to account. California Probate Code Section 16062, the Uniform Trust Code (UTC) Section 813, and equivalent provisions in most states require trustees to provide an accounting of trust assets, income, and expenses to beneficiaries within a reasonable time after the settlor's death. The estate inventory is the foundation of that accounting.

Small estate affidavit procedures — available in most states for estates below a threshold value (California: $184,500; Texas: $75,000; New York: $50,000) — still require preparation of an inventory to establish that the estate qualifies for the simplified procedure and to document the assets transferred without court supervision.

Blended family and complex family structure situations benefit from a complete estate inventory even where not legally required. When a decedent had multiple marriages, children from different relationships, or significant assets in multiple states or countries, a detailed inventory prevents disputes among beneficiaries about what assets existed and their values at the date of death.

A complete US Estate Inventory must catalog assets in organized categories, specify the valuation methodology for each asset type, and identify debts and liabilities — covering both probate and non-probate assets for complete estate administration.

Decedent identification and estate information fields must include the decedent's full legal name, Social Security number, date of death, state and county of domicile at death, the name and address of the executor or administrator, the date of appointment, and the probate court case number. These fields link the inventory to the specific probate proceeding and the decedent's tax filings.

Real property section must list each parcel of real estate owned by the decedent — including the property address, legal description (as shown on the deed), county where located, assessed value, and date-of-death fair market value established by a licensed real estate appraiser. The appraisal must comply with the Uniform Standards of Professional Appraisal Practice (USPAP) and should reflect the market value as of the date of death, not the current date. Property held as joint tenants with right of survivorship or in a revocable trust passes outside probate but should be noted for estate tax and beneficiary accounting purposes.

Financial accounts section must itemize every bank account, brokerage account, money market account, and certificate of deposit — including the institution name, account number (last four digits for security), account type, and balance as of the date of death. Account statements closest to the date of death provide the most reliable values. Payable-on-death (POD) and transfer-on-death (TOD) accounts pass outside probate but must be listed for estate tax reporting on Form 706.

Investment and retirement accounts section must catalog all securities accounts, IRAs, 401(k) plans, 403(b) plans, deferred compensation arrangements, and annuities — with the institution name, account number, account type, and date-of-death value. Publicly traded securities are valued at the mean between the high and low quoted prices on the date of death per IRS regulations at Treas. Reg. § 20.2031-2. Retirement accounts with beneficiary designations pass outside probate but are fully includible in the gross estate for federal estate tax purposes.

Personal property and vehicles section must itemize tangible personal property of significant value — including vehicles (make, model, year, VIN, and Kelley Blue Book or NADA value), jewelry, art, antiques, collectibles, and household furnishings. Items with an estimated value above $3,000 to $5,000 typically warrant a formal appraisal by an ASA-credentialed (American Society of Appraisers) or AAA-credentialed (Appraisers Association of America) personal property appraiser.

Business interests section must describe any ownership interest in a sole proprietorship, partnership, LLC, S corporation, or C corporation — including the business name, EIN, state of organization, ownership percentage, and estimated value. Business interests that are not publicly traded require a formal business valuation by a Certified Valuation Analyst (CVA) or Accredited Senior Appraiser (ASA) meeting the IRS requirements for qualified appraisals under Treas. Reg. § 25.2512-2.

Debts and liabilities section must list all outstanding obligations of the decedent at the time of death — including mortgage balances (with lender name, account number, and payoff amount), car loans, credit card balances, medical bills, personal loans, tax liabilities, and any pending litigation. Creditors must be notified of the decedent's death through the probate court publication process and have a defined period to file claims against the estate.

Summary and net estate value calculation should present the total gross estate value (all assets) and total liabilities, with a net estate value equal to gross assets minus liabilities. This summary page is the figure that drives estate tax analysis, creditor priority determination, and the calculation of each beneficiary's share of the estate.