A personal representative manages the deceased person’s estate in Texas probate proceedings. This role can be filled by an executor (if named in the will) or an administrator (if there is no will or the named executor cannot serve). A vital part of this job involves creating an accurate estate inventory during probate. This inventory is a comprehensive record of the decedent’s assets and liabilities, providing clarity and transparency in estate administration.
The estate inventory should include a list of all tangible and intangible assets (such as real estate, bank accounts, stocks, bonds, vehicles, jewelry, art, business interests and personal belongings). It should also include a list of all debts and obligations, including mortgages, credit card debts, personal loans, medical bills and tax obligations. This is hard enough when managing one’s affairs and gets exponentially harder when the executor or personal representative needs to assemble an accurate list of someone else’s assets and liabilities.
How to create an accurate inventory
Here’s a list of actionable items for assembling the inventory:
- Gather documentation: Collect bank statements, property deeds, investment records and loan agreements.
- Identify assets and liabilities: Categorize assets into tangible (physical items) and intangible (non-physical items like stocks). List all liabilities clearly.
- Valuation: Obtaining accurate valuations for assets may involve hiring professional appraisers for real estate or valuable personal property. For financial accounts, use values as of the date of death.
- Consult professionals as needed: Work with attorneys, accountants or financial advisors to ensure accuracy and compliance with legal standards.
Creating the document
The inventory document should include:
- Detailed descriptions: Clearly describe each asset and liability, including account numbers and property addresses.
- Valuations: State the value of each asset, supported by documentation or appraisals.
- Supporting documents: Attach relevant documents like appraisals, account statements and titles for verification.
Why an accurate estate inventory is essential
Texas law requires the personal representative to file an estate inventory within 90 days of appointment. This document ensures compliance with legal obligations and helps avoid potential legal complications. An accurate inventory also provides transparency to heirs, beneficiaries and creditors, thereby helping prevent disputes. It also provides a full scope of the estate’s assets and liabilities, allowing for effective management, including decisions about asset liquidation, debt payment and distribution to heirs.
Filing the estate inventory
In Texas, the personal representative must file the estate inventory with the probate court within 90 days of their appointment unless an extension is granted. The court uses this document to ensure that the estate is administered correctly and that all assets and liabilities are accounted for. Those with questions about this process can consult an estate law attorney who handles probate in Texas.