If you’re the executor of someone’s estate, one of the first things that you’ll need to do is take an inventory of the deceased’s assets.
In fact, the probate process cannot move forward until this inventory is completed. Kentucky requires the Inventory and Appraisement of Estate to be filed within 60 days after the executor’s appointment is confirmed by the court.
A thorough inventory accomplishes several things at once
As the executor, it’s your obligation to preserve and protect the assets in the estate. You need to know what is in the estate so that you can take the proper steps to secure those assets. Unfortunately, it isn’t uncommon for the loved ones of someone who has died to try to preemptively “claim” items that they believe they are meant to inherit.
Whether they simply do not understand the rules that must be followed or they’re acting in haste because they fear competing claims, it’s your job to put a halt to that kind of activity. A detailed inventory creates a record of the assets that existed when you assumed responsibility for the estate. That documentation can protect you if there are questions later about missing property, improper distributions or the overall administration of the estate.
Your inventory can also act as reassurance for anxious heirs. The inventory provides transparency and helps them feel that the property is safe and their inheritances will not mysteriously disappear. This can be effective at reducing potential conflicts that might otherwise disrupt the process or cause you considerable frustration.
The inventory will also help you sort between assets that pass through probate and those that transfer directly to beneficiaries outside of the probate process. In addition, the inventory will help you identify which assets need to be valued. Real estate, family businesses, art collections, antiques and other items may need professional appraisals, since their worth on the open market can affect the total value of the estate. In turn, that affects creditor claims, the estate administration expenses, potential tax consequences and final distribution amounts.
An inventory of an estate can be more complicated than you realize
The sixty days you are granted to prepare an inventory of assets for the probate court may sound like plenty of time, but locating and valuing assets can take longer than you might expect. Because failing to file a timely and accurate inventory can delay the administration of the estate (and potentially lead to unpleasant interactions between you and the court or with the estate’s beneficiaries), it may be wise to seek an attorney’s assistance. They can help you get through the necessary paperwork, make the appropriate filings and take each step in the probate process with confidence.
