If you thought organizing your own financial records was tedious, wait until you have to catalog every single thing someone else owned at the moment they died. Texas probate courts require a comprehensive estate inventory within 90 days of your appointment as executor or administrator, and they want specifics—not your best guesses or rough estimates.
The estate inventory isn’t just bureaucratic paperwork designed to make your life difficult. It serves as the official record of what the deceased owned and what those assets were worth, protecting beneficiaries, creditors, and you from disputes down the road. But the process can feel overwhelming when you’re already dealing with grief and family dynamics.
What is an Estate Inventory?
Here’s an overview of what an estate inventory is, it’s purpose, and the filing requirements:
What is the Purpose of an Estate Inventory?
An estate inventory serves multiple critical functions in the probate process. First, it creates an official record of all assets owned by the deceased at the time of death, establishing a baseline for estate administration. This protects beneficiaries by ensuring that all property is accounted for and prevents assets from disappearing or being undervalued.
The inventory also protects creditors by providing a comprehensive picture of the estate’s value and composition. Creditors need this information to determine whether the estate has sufficient assets to pay debts and to understand their priority in the payment hierarchy.
For the executor or administrator, the inventory provides legal protection by documenting exactly what they received and what condition it was in. If beneficiaries later claim that assets are missing or were mismanaged, the inventory serves as evidence of the estate’s original composition.
Understand the 90-Day Filing Requirement
Texas law gives you exactly 90 days from the date you qualify as executor or administrator to file the estate inventory with the probate court. This deadline is firm—the court won’t accept excuses about difficult family members, missing documents, or complex assets.
The 90-day period starts running when you take your oath and receive your Letters Testamentary or Letters of Administration, not when the person died or when you first learned about your appointment. Miss the deadline, and you could face removal as executor, personal liability for damages, or other legal consequences.
If you discover additional assets after filing the inventory, you’ll need to file a supplemental inventory. This happens more often than you might expect, especially when the deceased had complex financial arrangements.
How to File an Estate Inventory
Here are the steps to file an estate inventory:
Step 1: Gather Essential Documents
Before you can inventory anything, you need to locate all the deceased person’s financial and legal documents. Start with bank statements, investment account statements, insurance policies, real estate deeds, vehicle titles, and business records.
Don’t forget about digital assets like online banking accounts, cryptocurrency wallets, or valuable domain names. Many people have old retirement accounts from previous employers or small investment accounts they forgot about.
Safety deposit boxes often contain important documents and valuable items, but accessing them can be complicated. You’ll need proper legal authority and may need to have a bank representative present when you open the box.
Step 2: Identify and Categorize Assets
Texas law requires you to list every asset the deceased owned, but you can group similar items together if individual pieces are worth less than $3,000. Real estate, vehicles, bank accounts, investment accounts, and valuable personal property each need their own line items with specific descriptions.
Personal property can be challenging to categorize and value. Jewelry, art, antiques, collectibles, and even household furnishings might be worth more than you think. Don’t assume that old furniture or decorative items have no value.
Business interests require special attention. If the deceased owned part of a company, professional practice, or other business entity, you’ll need to determine the value of that ownership interest.
Step 3: Determine Date-of-Death Values
All assets must be valued as of the date of death, not current values or what the deceased originally paid for them. For some assets, this is straightforward—bank accounts and publicly traded stocks have clear values on any given date.
Real estate typically requires a licensed appraiser, especially if the property is unique or if there’s any question about its value. The appraiser needs to determine what the property would have sold for on the open market as of the date of death.
Personal property appraisals can be expensive, but they’re necessary for valuable items. Jewelry, art, antiques, and collectibles often need specialized appraisers who understand those specific markets.
Step 4: List Claims and Debts Owed to the Estate
The inventory must include not just what the deceased owned, but also money that was owed to them. This includes unpaid wages, loans they made to others, security deposits, insurance claims, and any other amounts due to the estate.
These receivables can be difficult to collect, especially if they’re based on informal arrangements or if the debtors dispute the amounts owed. You’ll need documentation to support these claims.
Step 5: Draft and Sign the Inventory & Affidavit
The inventory must be prepared on forms approved by the Texas Supreme Court or in a format that includes all required information. You’ll need to provide detailed descriptions of each asset, its location, and its date-of-death value.
The document must be sworn and notarized, meaning you’re legally certifying that the information is accurate and complete. Take your time with this step and double-check all information.
Step 6: File with the Probate Court
Once the inventory is complete and notarized, you must file it with the probate court that’s handling the estate. Some courts have specific filing procedures or require additional documentation.
Keep copies of everything for your records, and make sure beneficiaries receive copies as required by law. The inventory becomes a public record.
Penalties for a Late or Inaccurate Estate Asset Inventory
Filing a late or inaccurate inventory can have serious consequences. The court can remove you as executor or administrator, which means you lose your authority to manage the estate. You could also face personal liability for any damages caused by your failure to file properly.
If beneficiaries or creditors are harmed by delays or inaccuracies in the estate inventory, they can sue you personally for their losses. Working with an experienced estate planning lawyer in Houstin, TX, can help you avoid these problems and ensure that your inventory meets all legal requirements. Find out more about our lawyer in Houston.
Contact our skilled lawyer in Houston, TX, today.
