The Estate’s Financial Record
Inventory, appraisal, and accounting form the financial backbone of probate. They are not paperwork exercises. They are the official records the court relies upon to evaluate authority, approve compensation, authorize distributions, and ultimately close the estate.
What Each Step Does
An asset inventory identifies what the estate owns. An appraisal establishes value as of a legally relevant date. Accounting explains what has happened to those assets over time. Together, they create a continuous narrative of stewardship that must withstand scrutiny.
Why Precision Matters
Not every estate requires the same level of inventory or appraisal, but when required, precision matters. Assets must be identified accurately, described clearly, and valued according to applicable rules. Errors at this stage compound later. Misclassification, omission, or unsupported valuation often resurfaces when distributions are requested or objections are raised.
Valuation Standards
Appraisal is not simply market opinion. In probate, valuation is governed by statute and procedure. Certain assets require independent appraisal. Others may be valued through documentation or established benchmarks. The goal is not optimism or pessimism. It is defensibility. Courts care less about whether a value feels fair and more about whether it is properly supported.
Role of Accounting
Accountings extends this discipline over time. They document receipts, disbursements, gains, losses, and balances. They show how estate assets were managed, not just what they were worth. Accountings are where fiduciary performance becomes visible.
Court Review and Approval
Compensation for the Personal Representative and professionals is typically addressed through accounting. So are reimbursements, reserve requests, and proposed distributions. Without a clear and accurate accounting, the court cannot approve these actions. This is why accounting often becomes the focal point of probate review.
Interim Reporting
For estates administered over extended periods, interim accounting may be required. These provide transparency and protect both the estate and the fiduciary. They also surface issues early, when they can still be addressed without escalation.
Defining the Estate
Families are often surprised by how much probate hinges on these records. Inventory, appraisal, and accounting do not merely describe the estate. They define it for the court. Once filed and approved, they shape what can and cannot happen next.
Discipline and Timing
This phase rewards discipline, documentation, and patience. Estates that take these steps seriously tend to proceed with fewer disputes and smoother approvals; those that do not often encounter delays, examiner notes, and avoidable conflicts.
Ongoing Reference
Many readers bookmark this page and return to it when reviewing inventories, appraisal reports, or accountings to understand how each component fits into the larger process.