Inventory and Appraisal’s and Their Importance

During the course of a trust administration, the preparation of an “Inventory and Appraisal” will occur. Clients are often confused as to why an Inventory and Appraisal is necessary.  At the time of the decedent’s death, they owned several assets. These may include bank accounts, real property, vehicles, brokerage accounts, etc. The Inventory and Appraisal report is created as a “snapshot” of the assets held on the date of death so we can determine the value of the estate, but also so we can determine if the assets were held in the name of the trust or had designated beneficiaries. If enough assets were held outside of the trust, a probate may be required; this information is crucial in a trust administration. This information may also be needed to provide the beneficiaries with an accounting of the trust or estate. Likely if you don’t know if a particular asset should be added to the Inventory and Appraisal, you should provide us with the information. While we see and deal with this information on a daily basis, we are aware that compiling information may be overwhelming and confusing. We are always here to help!