Inventory Appraisement and List of Claims Purposes 1

Inventory, Appraisement, and List of Claims

Purposes � 1. Vis-à-vis Creditors � 2. Vis-à-vis Heirs and Beneficiaries

Not waivable �Not waivable by: Testator Heirs or beneficiaries �Why not? � Note: Not need if will filed as muniment of title.

1. Inventory PC § 250; EC § 309. 051 Contents: All real property located in Texas All personal property wherever located If decedent was married at time of death, indicate whether separate or community Note 3, page 124

2. Appraisement �Value of each asset as of date of death. �Who values? Personal representative Appraisers ▪ PC § 248 ▪ EC § 309. 001

2. Appraisement �Who may ask for appraisers? Interested person Court, on its own motion

2. Appraisement �Standard Court must have good cause to appoint.

2. Appraisement �Number One, two, or three at court’s discretion

2. Appraisement �Fee At least $5. 00 per day.

3. List of Claims PC § 251; EC § 309. 052 �List of claims due and owing the estate Decedent was a creditor �Avoid “rookie mistake” of listing decedent’s debts.

Supported by Sworn Affidavit PC § 252; EC § 309. 053 �Personal representative must swear under oath that IAL is true and complete.

Time PC § 250; EC § 309. 051 � 90 days from when PR qualified Court may shorten time period

Action by Court PC § 255; EC § 309. 054 �Court examines and approves or disapproves. �If court disapproves, PR must resubmit within time set by court but no longer than 20 days.

Affidavit in Lieu of Inventory PC § 250; EC § 309. 056 �New procedure created in 2011. �Purpose = privacy

Affidavit in Lieu of Inventory PC § 250; EC § 309. 056 �Prerequisites: 1. Independent administration, and 2. No debts (except secured debts, taxes, and administration expenses) remain by the time the inventory is due (90 days after appointment)

Affidavit in Lieu of Inventory PC § 250; EC § 309. 056 �PR must still prepare inventory. �PR must give to any heir or beneficiary who makes a written request. �PR may give to anyone PR believes in good faith to be an interested person.

Affidavit in Lieu of Inventory Changes effective 1/1/14 �Procedure available even if will says “file inventory” To rebut claim that standard language requires inventory filing. “Safe harbor” language revised to say, “return of any required inventory. ”

Affidavit in Lieu of Inventory Changes effective 1/1/14 �Executor cannot be held liable for the decision to use, or not use, the affidavit in lieu of inventory procedure.

Penalty for Failure to Comply New EC § 309. 057 �If PR disobeys a show cause order without good cause, court may impose a fine of up to $1, 000.

Cases �Garner v. Long – p. 127 �Lee v. Lee – p. 131