LEGL 3400

1. Chapter Eight
Step Two – Inventory and
Appraisal
Step Three – Creditors’ Claim

2. Wills, Trusts, and Probate Law for Paralegals
Gibson
© 2009 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.2
Inventory
A list of decedent’s assets and their date
of death values.
 Lists only assets (no liabilities)
 Value assigned – fair market value of asset
as of the decedent’s date of death
 Signed by personal representative

Swears information is complete and accurate

3. Wills, Trusts, and Probate Law for Paralegals
Gibson
© 2009 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.3
Time requirements
 State law controls
 Ranges from 30 days to 6 months from
appointment of personal representative

4. Wills, Trusts, and Probate Law for Paralegals
Gibson
© 2009 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.4
Appraisals
 Appraisal of assets by an independent
expert may be required
 Usually paid a fee for their work
 Fee is part of the administration expense of
the estate

5. Wills, Trusts, and Probate Law for Paralegals
Gibson
© 2009 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.5
Notification to Creditors of
Estate
 Creditors’ claims, inventory and
appraisal work – often completed
simultaneously
 All debts must be paid before an heir or
beneficiary is entitled to inherit from the
estate.

6. Wills, Trusts, and Probate Law for Paralegals
Gibson
© 2009 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.6
Locating Creditors
 Law firms typically publish a notice in
the newspaper
 Notice contains information regarding the
decedent and date for creditors to present
claims.

7. Wills, Trusts, and Probate Law for Paralegals
Gibson
© 2009 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.7
Creditors’ Options
Once learning of estate, creditors have 2
options:
1. Ignore the claim and do nothing
 After time limitation has run, creditor no
longer entitled to payment
2. Present the claim
 Name & address of creditor, amount
claimed, and nature/description of claim

8. Wills, Trusts, and Probate Law for Paralegals
Gibson
© 2009 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.8
Estate’s Response to Known
Claims
 All of the debt may be paid/allowed
 All of the debt may be
rejected/disallowed
 A portion of the debt may be allowed
and a portion disallowed.

9. Wills, Trusts, and Probate Law for Paralegals
Gibson
© 2009 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.9
Preference of Creditors
 Estate may not have enough assets to
pay all of the decedent’s liabilities
 State statutes govern which creditors are
preferred (preferred creditors are paid first)

10. Wills, Trusts, and Probate Law for Paralegals
Gibson
© 2009 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.9
Preference of Creditors
 Estate may not have enough assets to
pay all of the decedent’s liabilities
 State statutes govern which creditors are
preferred (preferred creditors are paid first)