Preparation and Filing of the Inventory | Commissioner of Accounts

Preparation and Filing of the Inventory

 

PRACTICAL INSTRUCTIONS FOR PREPARING THE INVENTORY

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THE USE OF 10 -12 POINT FONT SIZE IS REQUIRED IN LEGAL CONTRACTS. Since your filings will be recorded at the Henrico Circuit Court, the font size used on inventory and accounts should not be less than 10-12 point.

Your inventory and/or account may be returned if it is not clearly legible and a minimum of 10-12 point font size.

 

                                    INVENTORY FORMS

 

Form CC-1670 is the required form for the filing of an Inventory of the assets of a decedent’s estate.  At the time of qualification you were given Form CC-1670 and Form CC-1670 (INST), an instruction summary for completing the inventory.  These instructions are specific and will give you all of the information needed to properly complete the inventory.  It is critical that the inventory be correctly stated in terms of the assets of the estate and the assets are placed in the proper location on the form.  Certain assets pass outside of the estate and are not included on the inventory.  These assets would include real estate which passes by survivorship designation in the deed, life insurance with a designated beneficiary, annuities with a designated payee.  These assets, as you will determine from the instructions, are not listed anywhere on the inventory because you have no control over them.

However, there is an exception. For joint or pay on death accounts or certificates of deposit with banks and credit unions, accounts also not under your control, they must nonetheless be listed in Part 2 of the inventory, but are not included in the total value of assets shown on the front of the inventory form.  For example, if John Doe has a joint bank or credit union account with his daughter Jane Doe as co-owner, or which Jane was designated as the survivorship beneficiary, or pay on death ("p.o.d") beneficiary, that account passes outside of the probate estate; is not included in the total probate estate; is not subject to administration by the executor; but must be shown in Part 2 of the Inventory.  The proper designation in part 2 for example would be: 

SunTrust Bank checking account (2140)..$10,000.00, survivorship to Jane Doe 

Note: If the account was joint only as a convenience in transacting business for the decedent prior to death, and was not intended as a survivorship account, it should be a part of the probate estate and listed in part 1 of the inventory. Such an account may have been a power of attorney account or an account in joint names only to facilitate the paying of the decedent's bills prior to death.

 

COMPLETION OF THE FIVE SECTIONS OF THE INVENTORY

 

PART 1: PERSONAL PROPERTY

 

Part 1:  This section includes tangible and intangible personal property owned by the decedent. The date of death value is used

If the decedent owned stocks and bonds, call the stockbroker and get a statement of the date of death value.  Do not list the entire brokerage account with one value.  The individual components of a brokerage account must be listed.  For example, an account at Morgan Stanley worth $100,000.00 should not be listed in that manner but should be listed with the component parts.  If the account has 1000 shares of Exxon stock valued at $50.00 per share on the date of death, and 2000 shares of Anthem at $25.00 per share on date of death these individual companies must be listed with the number of shares, per share value and total value for each company’s stock.

Bank accounts just in the decedent's name without any survivorship designation should be listed by type of account (checking, saving, CD, IRA)  Only the last four digits of the account number should be shown for any account listed on the inventory or any other filing to protect individual and estate privacy.

The value of automobiles may be obtained online at NADA or KELLEY BLUE BOOK. Use the fair market value without reduction for any lien on the vehicles.

 

OWNERSHIP OF JOINTLY TITLED VEHICLES

Ownership of jointly titled vehicles should be reported as follows in accordance with current DMV regulations:

a. The surviving titleholder is considered a joint owner with the right of survivorship if;

     (i) The title reads John Doe "or" Mary Doe; or

     (ii) The titleholders' names are followed by the words "or survivor".

     Under the above circumstances the decedent would have no interest in the vehicle and the vehicle would not be reported in Part 1.


b. If only the decedent's name appears on the title, the total interest in the vehicle is reported in Part 1;


c. The surviving titleholder does not have the right of survivorship if:

      (i) The word "and" appears between the titleholders' names; or

      (ii) The words "or survivor" do not appear after the titleholders' names.

      Under the above circumstances the decedent had a 1/2 interest (if two titleholders) and the 1/2 interest is reported in Part 1 at 1/2 of the fair market value, without reduction for any lien.

 

MISCELLANEOUS PERSONAL PROPERTY

 

Collections may be valued by calling dealers or clubs involved in the same type of collection.


Antiques and fine jewelry must be listed by individual item and may need to be appraised depending on the disposition of the asset provided for in the will, or the value of the estate if estate taxation may be involved.


The date of death value of U.S. Savings Bonds may be obtained online at www.treasurydirect.gov/BC/SBCPrice.

 

Check with the Virginia Division of Unclaimed Property to see if the decedent had any right to unclaimed property at the time of death at www.VaMoneySearch.org. If you prefer call (800)468-1088.

 

IS APPRAISAL NECESSARY?


There is no formal requirement for appraisal of the entire estate and to do so is generally a waste of estate assets, unless appraisal is directed by the will or appraisal is necessary to properly allocate  personal property by equal value, or the estate is taxable for Federal estate taxes.

 

****All inventory assets are reported at fair market value without reduction for anything owed on the asset.

 

PART 2: MULTIPLE PARTY BANK AND CREDIT UNION ACCOUNTS


Part 2: This section lists only bank and credit union accounts and certificates of deposit.

 

A joint or multiple party account is any one of the following:

 

             (i) an account which the decedent owned with another; or

 

             (i) an account on which the decedent had made a “pay on death” designation; or

 

             (iii) an account which contains a “survivorship” designation.

 

Only accounts with banks and credit unions are listed.

 

The bank name, last four numbers of the account and joint or survivor payee must be listed with the date of death value of the account. Please refer to Form CC-1670(INST) for further clarification on bank and credit union accounts.

If the account was joint only for convenience with an attorney in fact  being listed or some other person listed only for signing purposes, the account should be listed in Part 1.

 
If the account was designated as a survivorship account by an attorney in fact for the decedent prior to death and the account had not been so established by the decedent personally, it should be listed in Part 1 because such a designation by an attorney in fact normally represents self dealing and would be considered improper.

 

Virginia statutory law controls the disposition of joint, pay on death (POD), transfer on death (TOD) and specifically designated  survivorship accounts upon the decedent's death, and you may have to consult those statutes or consult with an estate attorney if you have a question as to whether the bank or credit union account is an asset of the estate or passes outside of probate according to banking or other statutory rules and the manner in which the decedent established the account.

 

You should obtain copies of the account cards for each bank account to determine how the account was established. You should save these account cards for future reference in case your determination is questioned by a beneficiary and for presentation to the Commissioner with your inventory. If the bank or credit union no longer has the account card, request a letter from the institution describing how the account was established as to ownership at death. See Sections 6.2-604; 6.2-605; 6.2-606; 6.2-607 and particularly 6.2-608, Code of Virginia (1050), as amended.

 

NOTE: In most cases we will request proof that the accounts reported in part 2 were, in fact, joint or survivorship accounts. This proof must be submitted with your inventory.


If there are multiple beneficiaries under the will and any of the accounts reported in part 2 are payable to one of the beneficiaries alone, verification is required, and you must submit at the time you file your inventory a copy of a month of death bank statement showing joint ownership, or a copy of the account card showing the account to be a pay on death (p.o.d.) account, or having a named beneficiary.

 

The same information is required if all beneficiaries are listed as joint account holders, so that we may determine that the assets have been correctly reported in part 2, and should not be part 1 inventory assets.

 

NOTE: If a brokerage account was owned by the decedent, who during his lifetime executed with the broker a transfer on death designation (TOD), the account is not listed in part 1 because it passes bysurvivorship designation, and will not appear in Part 2 of the inventory because it is not an account held by a bank or credit union.

 

PARTS 3 AND 4: REAL PROPERTY IN VIRGINIA

 

Parts 3 and 4: Real estate is listed in one of three sections on the Inventory:

  1. If the decedent had a will and you have power to sell real estate under the will, and the decedent’s real estate does not pass by survivorship, that real estate is shown in Part 3. 

    Read the will to determine if you are directed to sell, are specifically authorized to sell of real estate, or if the fiduciary powers of Sections 64.1-56 or 64.2-105, Code of Virginia, are incorporated by reference giving you the power to sell real estate among other powers. 
  2. The value may be the fair market value based on a certified real estate appraisal (which must be supplied with the inventory), or the date of death tax assessed value by the County wherein the property is located. The Henrico County tax assessed value may be obtained by phone at 804-755-7380, or on the internet by street address at www.co.henrico.va.us. Once on the County website click on "real estate property information" under online services on the left of the page, then check the "disclaimer" box, click on "submit" and you can enter the street address for the tax assessed value.
  3. If the decedent had real estate and you qualified as executor but the will did not give you the power to sell real estate, or if you qualified as the administrator of an intestate estate, you have no power of sale over real estate, and the decedent’s interest in real estate  should be listed in Part 4 of the inventory.

                                       

                                         PART 5: REAL ESTATE OUTSIDE OF VIRGINIA

  4. Non-Virginia real estate owned by the decedent should be listed in Part 5 of the Inventory. 
      
  5. NOTE:     
    1. Burial rights owned by the decedent are generally treated as personal property, not real estate, and are reported in Part 1.
    2. Time shares may be treated as real estate if there is a recorded deed, or personal property if a contract right gives the decedent the “ownership” interest.

  6. The value to be listed for real estate is the tax assessed value or appraised value without reduction for deed of trust notes (mortgages) on the property.

SUPPLEMENTAL INVENTORY


You are required to submit a first inventory within four (4) months of qualification even if you have not determined all of the assets of the estate.

Thereafter, if you find additional assets to report a supplemental inventory must be filed (on the same inventory form) if the assets are $25,000.00 or more. That supplemental inventory may report only the additional assets, or may re-state the entire inventory. Please check the appropriate box on the inventory form to indicate what you are reporting.

When you submit that supplemental inventory you will submit a check payable to the Commissioner of Accounts for $91.00, which includes Commissioner's fees of $75.00 and the $16.00 filing fees for the Clerk of Court.

If the additional assets found after filing the inventory are less than $25,000.00, you may report the assets as "adjustments" on line 4 of your first account. The additional assets reported are not "receipts".

         TRANSFER ON DEATH DEEDS


        EFFECTIVE JULY 1, 2013, THE OWNER OF REAL ESTATE MAY RECORD A DEED DURING LIFETIME, WHICH, UPON DEATH, TRANSFERS OWNERSHIP IN REAL ESTATE TO A NAMED BENEFICIARY OUTSIDE OF THE PROVISIONS OF THE WILL (TOD ownership).

      THIS IS CONSIDERED NON-TESTAMENTARY AND WOULD THEREFORE NOT BE REPORTED IN PARTS 3 or 4 OF THE INVENTORY.    
  
      However, by statute TOD real estate is potentially subject to the satisfaction of the decedent's debts, administrative costs, funeral costs or disposal of the decedent's remains and statutory allowances and claims if other assets of the estate are insufficient to pay such expenses.

      Therefore, while you are not obligated to report a transfer on death deed on the inventory, you are considered obligated to make the Commissioner's Office aware that there was a transfer on death deed, and to provide a copy of the recorded deed at the time you file your inventory.

Part 5 : Real estate (or any recorded interest therein) located outside of the Commonwealth of Virginia is to be listed in part 5 of the inventory in the same manner as real estate is listed in parts 3 and 4. Contact the real estate assessor's office in the foreign jurisdiction and get the assessed value and notify the tax department of your qualification so that you will receive notices associated with the property.

You will probably have to go through an "ancillary administration" of the estate in the state where the real estate is located in order to sell or transfer the real estate. You should make contact with an estate attorney in the city or county where the property is located to advise and assist you in administering the foreign real estate.

 

When is the Inventory Filed?

The inventory shall be filed four (4) months from the date of your qualification.  Failure to file could result in a delinquent letter, a summons by the Commissioner or an Order to appear before the Court. If you have not completed your search for the decedent's assets when the inventory is due, file the first inventory timely, followed by a restated inventory when you have discovered all assets.

Where is the Inventory Filed?

The inventory is delivered or mailed to the Henrico County Commissioner of Accounts, 8500 Mayland Drive, Henrico, VA. 23294 

 

What is filed with the inventory?

 

File the Inventory in duplicate, signed by all fiduciaries, with a COPY OF THE BANK STATEMENTS, IN THE MONTH OF DEATH, FOR ALL PART 2 ACCOUNTS REPORTED. Include a check for the appropriate fees as determined from the schedule of the inventory filing fees.  With the Commissioner’s fee you shall include the Clerk of the Circuit Court’s filing fees based on the number of pages submitted, usually a $16.00 clerk's fee. All fees shall be written as one (1) check payable to the Commissioner of Accounts.

 

Clerk of Court fees:

 

1 - 10 pages..................................$16.00

11 - 30 pages................................$31.00

31 or more pages...........................$51.00

 

The Commissioner's fee schedule is as follows:

$ 0-50,000...................................$110.00

$50,001-200,000..........................$165.00

$200,001-500,000........................$220.00

Above $500,000.00......................$275.00

 

NOTE: ALL COSTS PAYABLE TO THE COMMISSIONER, AND CLERK'S FILING FEES, SHOULD BE PAYABLE TO "HENRICO COMMISSIONER OF ACCOUNTS", IN ONE CHECK FOR ALL FEES AND COSTS.

 

 

Forms to be Used for Testate and Intestate Estate Inventory:

  1. Inventory of Decedent’s Estate (Form CC-1670 | Instructions)