Purpose Of An Inventory And Appraisal
An inventory and appraisal is a required filing in a California probate proceeding. The inventory and appraisal is a single document that (1) inventories the property in the decedent’s estate and (2) contains an appraisal of the property in the inventory. California Probate Code section 8800(a).
Contents Of An Inventory And Appraisal
The inventory must list those assets that have come into the possession of the personal representative or are known to the personal representative. Each item must be listed separately, and the fair market value of the item at the time of decedent’s death must be listed. California Probate Code section 8802.
The following property must be specifically identified in an inventory and appraisal: • Money owed to the decedent and any security for same.
• A statement of the interest of decedent in a partnership.
• Decedent’s money and other cash items. • Portions of the decedent’s property that are community, quasi-community, and separate property.
• A statement that bond is waived, or the amount of the bond and whether or not it is a sufficient amount.
Responsibility For Appraising Decedent’s California Probate Property
The inventory property is appraised by the personal representative, a probate referee, or an independent appraiser. The property that is appraised by the personal representative is listed in section 8901 of the California Probate Code, and includes:
• Money and other cash items. As used in this subdivision, a “cash item” is a check, draft, money order, or similar instrument issued on or before the date of the decedent’s death that can be immediately converted to cash.
• Accounts in financial institutions.
• Cash deposits and money market mutual funds, as defined in subdivision (b) of Section 9730, whether in a financial institution or otherwise, including a brokerage cash account. All other mutual funds, stocks, bonds, and other securities shall be appraised pursuant to Sections 8902 to 8909, inclusive.
• Proceeds of life and accident insurance policies and retirement plans and annuities payable on death in lump sum amounts.
The California probate referee is responsible for appraising all property other than that appraised by the personal representative. The personal representative can elect to have an independent expert, as opposed to the probate referee, appraise property that contains a unique, artistic, unusual, or special characteristic. See California Probate Code section 8904.
Objections To Inventory And Appraisal
A written objection to the appraisal can be filed by the personal representative or any interested person any time prior to the hearing on the petition for final distribution of the estate. California Probate Code section 8906. If the California probate court determines that the objection was not filed with reasonable cause or good faith, then the court can order that the fees of the personal representative and attorney be charged against the objector.
Deadline To File Inventory And Appraisal
The inventory and appraisal must be filed within 4 months from the date that letters are issued to a California personal representative. Extensions can be requested. California Probate Code section 8800(b). Supplemental inventories can also be filed if a personal representative learns of property that was not included in the prior inventory and appraisal. The supplemental inventory and appraisal must be filed within 4 months after the personal representative acquires knowledge of the property.
Consequences Of Failing To File Inventory And Appraisal
If the California personal representative fails to file the inventory and appraisal, an interested person can petition to compel the filing of the inventory and appraisal, and the court can order that the inventory and appraisal be filed within a certain time period. Upon petition of an interested person, the California probate court can impose damages for any injury to the estate resulting from the failure to file the inventory and appraisal. Another option is that an interested person can petition the court for removal of the personal representative.
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