How to File an Inventory in a Decedent Probate Estate

For Michigan personal representatives, understanding the requirements of the probate process is crucial. One of the most import filings in the probate process in the Inventory, which provides the probate court and interested parties with an initial list and valuations of estate assets.  In this guide, the Michigan probate attorneys at Thompson Legal will explain the basic of inventories in Decedent Estates as well as inventory filing requirements.

Please note that this post is not exhaustive, and every situation is unique. In the event that you have questions about your specific case, it’s advisable to speak with a Michigan probate attorney. Contact Thompson Legal to schedule a discovery call with an experienced probate lawyer.

What is an Inventory?

An inventory serves as an official catalog of all the assets owned by a deceased party individually, as of their date of death. An Inventory should be list encompassing various forms of property, including real estate, businesses, vehicles, financial accounts, and personal property. The Inventory is completed by the Personal Representative, including supporting attachment verifying the values listed, be filed with the probate court, and also be served on all interested parties. 

What Should be Included on the Inventory?

The inventory must cover all assets owned by the decedent at the time of their death. This includes real estate, vehicles, financial accounts, valuable personal items, and more. Each asset category requires specific details for proper identification, such as legal description and tax values for real estate, vehicle details, and banking institution information for financial accounts. Your filing should include the supporting statement verifying the values listed. 

Real Estate

For decedent estates containing real estate, the personal representative should include the street address, Tax ID, and complete legal description of the property on the Inventory. Real estate parcels are typically valued by doubling the State Equalized Value (SEV).  If the personal representative wishes to use another value, they may have the real estate appraised.

Mortgage Liens

For decedent’s estates, real property that is encumbered by a mortgage or other security, the amount of the indebtedness shall be deducted from the value of the real property. No parcel of real estate can have a value of less than zero, and there is no carryover to other estate assets.  So, for example, if there is a parcel of real estate worth $200,000 with a mortgage of $220,000 and other estate property worth $50,000, the total value of the estate would be $50,000.  The additional $20,000 from the mortgage cannot be applied to offset the value of the other estate assets.

Financial Accounts

Bank, retirement, brokerage, and other financial accounts should be listed on the Inventory with their date of death values. For security reasons, the account information may need to be redacted with a PC 97. Personal representatives should be sure to include redacted copies of the underlying statements as support with their inventory filing. 

Personal Property

Personal property is often lumped together and listed with an estimated value.  This is permissible except when there are unique valuable items, individual valuable items or where it is anticipated that the interested persons will contest the inclusion or value of items. In those cases, the personal representative should have the items appraised professionally. 

How to File the Inventory

The timing for filing the inventory varies based on the type of administration—unsupervised or supervised. For unsupervised administration, the inventory must be presented to the Probate Court within 91 days of the issuance of the personal representative's Letters of Authority. Conversely, in supervised administration, the inventory must be filed within the same timeframe. Within the timeframe allowed, Personal Representatives should compile their Inventory and supporting documents, and file it with the appropriate probate court along with the applicable inventory fee. 

Payment of the Inventory Fee

It is important to note that the filing an Inventory always incurs an inventory fee, which is determined by the probate based on the value of the decedent's estate. The fee calculation follows a schedule outlined by Michigan law. Payment of this fee is mandatory and must be settled before the estate can be closed. 

Notice and Objections

Personal Representatives are required to serve the Inventory on all interested parties to the Estate. If a party disagrees with the items listed or the values given in the inventory, they may file an objection or request the matter be moved to a formal proceeding.  

Conclusion

The probate process, especially inventories, requires attention to detail and adherence to legal protocols. At Thompson Legal, experienced probate attorneys are dedicated to guiding you through every step of probate administration, ensuring compliance with regulations and seamless estate settlement. For further assistance or inquiries regarding inventories and probate administration, contact us for a discovery call.

This blog is for informational purposes only. It is not intended as legal advice. In the event you would like to speak with an experienced probate attorney about your case Contact Us at (734) 743-1646 to schedule a consultation.