What goes in the inventory
The inventory must list all probate assets — assets that pass under the will or through intestacy. This excludes:
- Assets with named beneficiaries (401(k), IRA, life insurance, annuities)
- Jointly-held assets with right of survivorship
- Payable-on-death (POD) or transfer-on-death (TOD) accounts
- Assets in a revocable living trust
Include everything else: bank accounts solely in the decedent's name, brokerage accounts without TOD designations, real property held solely by the decedent, vehicles, boats, business interests, valuable personal property (jewelry, art, collectibles), and digital assets (domain names, crypto, online accounts with value).
How to value it
Cash and publicly-traded securities: the value at the date of death. Banks and brokerages will issue a "date of death statement" on request.
Real property: market value at the date of death, typically determined by a licensed appraiser. Some states require court-appointed appraisers (called "referees" in California). The tax-assessed value is almost always too low and should not be used.
Vehicles: Kelley Blue Book or NADA private-party value.
Business interests: often require a business valuation specialist, especially for closely-held businesses. This can take months.
Personal property: fair market value, not replacement cost. Household furniture and ordinary personal effects are often valued as a lump sum unless there are items of significant individual value (jewelry, art, antiques) that should be appraised separately.
Why accuracy matters
The inventory is the baseline for:
- Estate tax (federal if the estate exceeds the exemption — $13.99M in 2026 — or state-level in a dozen or so states)
- Attorney and executor fees in statutory-fee states, calculated as a percentage of estate value
- Stepped-up basis for inherited assets (beneficiaries' tax basis in inherited property is set at the date-of-death value)
- Final accounting to the court and beneficiaries
Under-reporting exposes you to tax penalties. Over-reporting inflates fees and could harm beneficiaries' future capital gains treatment.