The purpose of the Inventory is to provide information about assets of the Estate to the Court, beneficiaries, heirs and creditors. The initial probate petition does include some information about estate assets. However, the Personal Representative must file a more comprehensive list, called an Inventory.
Contents of a Nevada Probate Inventory
The Inventory must list every asset of the Estate. For each asset, the following information must be provided:
- A description of the asset. For financial accounts, usually the Inventory will contain the name of the financial institution (such as a bank) and the last four digits of the account number.
- The amount of any encumbrance on the asset. For example, if the Decedent owned a home, and there is a mortgage, the Inventory must list the mortgage and the balance owed.
- The Estate’s interest in the asset. For example, if the Decedent (person who passed away) owned a business with his brother, the Inventory may list “Vandalay Industries” as an estate asset and that the Estate’s interest is 50%. Additionally, the Inventory should disclose the community property interest in any listed estate.
- The value of the asset. For financial accounts, determining the value is certain and easy. However, for other assets, an appraisal may be necessary to ascertain value. Appraisals can be cumbersome in both time and cost. Assets are valued as of the date of death. NRS 144.025(1). The Inventory does not include assets worth less than $500. NRS 144.030(2). Thus, an Inventory does not include most personal and household items.
Duty to File an Inventory
The Personal Representative must file an Inventory with the Court within 60 days of the beginning of probate. NRS 144.010(1). Within 10 days of filing the Inventory with the Court, the Personal Representative must serve all interested parties with a copy of the Inventory. NRS 144.010(2). The Court may, at it’s discretion, remove the Personal Representative for failure to file an Inventory within 60 days. NRS 144.080. Wolzinger v. Eighth Judicial Dist. Court, 105 Nev. 160, 164 (Nev. 1989) (“Both the order of suspension and the order to show cause are based on Melvin Wolzinger’s failure to file an inventory within sixty (60) days after his appointment as executor as mandated by NRS 144.010…”).
The Court, beneficiaries, heirs, creditors and other interested persons depend upon a timely and accurate inventory. As such, the Personal Representative is required to swear, under penalty of perjury, that the Inventory is accurate. NRS 144.070.
Newly Discovered Assets
The Personal Representative may not have discovered all Estate assets at just 60 days into administration of the Estate. Therefore, when additional assets are discovered, the Personal Representative must file an Supplemental Inventory within 20 days of discovering the new asset. NRS 144.090.
Inventory As Accounting Baseline
When the Personal Representative files an accounting with the Court, she uses the Inventory as the baseline. Thus, the Personal Representative must file an accounting within six months of appointment. NRS 150.080. The first accounting, sometimes the only accounting, uses the inventory as the baseline from which the accounting is measured.