Asset Inventory & Valuation After Death in California
You might feel lost in a sea of paperwork, bills, and bank statements after a loved one’s passing. And since the grief is still fresh, this might feel even more confusing than it would under other circumstances. Here’s what to do during the process of asset inventory & valuation:
1. Start with a Complete Inventory
Create a detailed list of everything your loved one owned (property, vehicles, bank accounts, investments, family heirlooms, personal belongings, etc). Check for digital assets like retirement accounts, too. In doing so, you’ll have a full picture of their assets to help with legal and financial decisions as you move forward.
2. Understand How Debt is Handled
You don’t have to worry about being responsible for your loved one’s debt because, in most cases, the estate pays off all debt before heirs receive their inheritance. If there’s not enough money, some debts may go unpaid, but this depends on the circumstances. Creditors must follow legal processes, so don’t rush to pay anything before getting proper advice.
3. Don’t Forget Taxes
File your loved one’s final income tax return. Keep in mind that estate taxes may apply depending on the estate’s value. While this is the executor’s responsibility, working with an attorney streamlines things. If the estate generates income after death—like rental property—you may need to file additional tax returns.
4. Keep Important Documents Organized
Gather financial statements (property deeds, insurance policies, legal documents like wills or trusts, etc). Keep everything in one secure place, and make copies if needed. Staying organized will help you navigate probate or estate administration more smoothly.
Asset inventory and valuation can be a lot to navigate alone. Having the right team by your side makes all the difference. If you need help, we’re here to guide you every step of the way.