What Is an Inventory and Appraisal in California Probate?
What Is an Inventory and Appraisal in California Probate?
If you're going through probate in California, you may hear the phrase Inventory and Appraisal. The name sounds simple, but it's an important part of the probate process.
Here's what it means and why it matters.
What Is an Inventory and Appraisal?
The Inventory and Appraisal is a probate document that identifies and values the estate's assets. Think of it as creating a financial snapshot of what the person owned when they passed away.
Depending on the estate, this might include:
• Real estate
• Bank accounts
• Vehicles
• Investment accounts
• Business interests
• Jewelry or collectibles
• Other personal property
Not every asset someone owned will necessarily be part of the probate estate. How an asset was owned and whether it had a beneficiary can matter.
Why Does the Court Need It?
Before an estate can eventually be settled, there needs to be a clear picture of what is actually in the estate.
The Inventory and Appraisal helps establish that picture.
It identifies the probate assets and provides their values as of the person's date of death.
This information becomes part of the probate administration and can also be important later when the estate is accounted for and ultimately distributed.
Who Determines the Value?
Some assets are straightforward. For example, a bank account may have a specific balance as of the date of death. Other assets aren't as simple.
How much was a house worth on that date?
What about a vehicle, business interest, jewelry, or other property?
In California probate, certain non-cash assets are generally appraised by a court-appointed probate referee. The probate referee provides an independent value for those assets.
What Is a Probate Referee?
A probate referee is an appraiser appointed to assist with valuing property in probate estates. Families are sometimes surprised when they first hear this term because they may already have an idea of what a property is worth. Probate requires more than an estimate from Zillow or a family's best guess. The goal is to establish an appropriate date-of-death value for estate property.
Why the Date of Death Matters
The value used in probate is generally based on what the asset was worth when the person passed away. That means the value may be different from what the asset is worth today.
For example, a home could increase or decrease in value while probate is pending. The Inventory and Appraisal is concerned with establishing the appropriate value as of the date of death.
What Happens After the Inventory and Appraisal?
The Inventory and Appraisal is one part of a much larger probate process.
The estate may still need to address creditors, taxes, property, expenses, distributions, and other administrative matters before probate can be completed.
Every estate is different, but having an accurate inventory helps create a clear record of the assets being administered.
Navigating a California Probate?
Probate involves much more than filing the initial petition with the court.
If you've lost a loved one and are trying to understand what happens next, JLC Legacy Law helps families navigate the California probate process from beginning to end.
Take our free 60-Second Probate Assessment to tell us about the estate and learn more about your next step.
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