When a loved one passes away, the people left behind often face probate. For many families, a key step in this process is the probate inventory. California law requires the estate executor to file a formal inventory and appraisal of all estate assets. This document gives the court a full picture of what the estate holds. Knowing which assets belong on this list can help your family avoid costly mistakes and extra delays.
Real property
Real property includes homes, land and commercial buildings. The inventory must include any real estate your loved one owned in California. A court-appointed probate referee sets the value of each property. This ensures each property is properly valued before assets pass to heirs.
Bank and financial accounts
Checking accounts, savings accounts and certificates of deposit must appear on the inventory. This applies to accounts held solely in the deceased’s name. These accounts represent liquid assets the estate may use to settle debts and expenses. The inventory should reflect the account balance as of the date of death. Accounts with a named beneficiary or a joint owner typically pass outside of probate.
Stocks, bonds and investment accounts
This includes individual stocks, bonds and brokerage accounts the deceased held in their name. Since market values change, the court uses the date of death as its reference point. Failing to report these assets accurately can create legal issues for the estate. This can also delay the distribution of assets to beneficiaries.
Personal property
Personal property covers physical belongings such as vehicles, jewelry, artwork and furniture. Overlooking even smaller items can lead to disputes among family members later. The executor can sometimes group low-value household goods together in the inventory. However, an appraiser must still formally evaluate all personal property. The court can waive this requirement in some cases.
Business interests
If your loved one held an ownership stake in a business, that interest becomes part of the estate. This includes sole proprietorships, partnership interests and shares in a private corporation. Business interests can be complex to value because they depend on factors like revenue, liabilities and ownership agreements.
Managing the probate process
The probate inventory is the foundation of the entire estate administration process. Every asset on the inventory determines how the estate settles debts and distributes property to beneficiaries. The more complete the inventory, the smoother the overall probate process becomes for everyone involved.