Inventorying an Estate: Common Mistakes & How to Avoid Them
Sorting through a loved one’s property feels heavy, and the paperwork can pile up fast. In that whirlwind, creating a solid inventory often gets rushed, which is where problems start. At Commonwealth Life and Legacy Counsel, our husband-and-wife team, Michael and Lelia Winget-Hernandez, helps Central Virginia families with probate and estate planning every week, and we understand how personal this work is.
We wrote this to walk you through common inventory mistakes, plus simple ways to avoid them. With a clear list and steady steps, you can reduce stress, protect yourself as a personal representative, and move the estate forward without unnecessary detours.
The Importance of Accurate Estate Inventory
A complete and accurate inventory sits at the center of proper estate administration. It tells the court what exists, supports tax reporting, and guides fair distributions to heirs or beneficiaries.
Good numbers also protect the personal representative. Clear values, supported by records, reduce disputes and help you meet your fiduciary duties without guesswork.
In Virginia, the estate inventory must be filed with the Commissioner of Accounts within four months of qualification. Missing that deadline can trigger fees, audits, or extra scrutiny that no family wants.
With that foundation in place, let’s talk about the pitfalls we see most often, and how to avoid them with practical tools.
Common Inventory Mistakes and How to Steer Clear of Them
These are frequent snags in Virginia estates. A little planning and follow-through can keep you out of trouble.
Failing to Identify All Assets
Many estates lose track of accounts, stock certificates, safe deposit boxes, or even parcels of land. Skimming drawers or relying on memory leads to missed items and unhappy heirs later.
To cast a wide net, look for patterns and paper trails. Tax returns, mail, and device logins often point to hidden accounts or policy numbers.
- Pull the last three years of federal and state tax returns to spot income sources and 1099s.
- Forward and read the decedent’s mail to your address to catch bank statements and policy notices.
- Check email, phone, and the computer for e-statements, password managers, and saved bookmarks.
- If gaps remain, think about a professional asset search to close the loop.
Keep a running list of what you found, where you found it, and who you contacted. That log will save hours when you prepare the inventory.
Misclassifying Assets: Probate vs. Non-Probate
Not all property goes through probate. If you lump everything together, you can over-report, confuse heirs, or slow the case for no reason.
Solely owned property is usually probated. Items with a beneficiary or with survivorship usually are not. Review deeds, account agreements, and beneficiary forms to see how titles and transfers work.
Virginia’s multi-party account statute often gives surviving co-owners the funds in a joint account with right of survivorship. This means the account can pass outside the estate by operation of law, even if a will says something different.
The chart below gives quick examples for context:
| Asset Type | Probate? | Notes |
| Solely owned house | Usually yes | Check the deed and will. Title passes by probate unless the deed says otherwise. |
| Home titled tenants by the entirety | No | Passes to the surviving spouse by survivorship under deed rules. |
| Joint bank account with survivorship | No | Often passes to the survivor under the multi-party account statute. |
| IRA or life insurance with a named beneficiary | No | Pays to the named person under the contract. Keep beneficiary forms on file. |
| Trust-owned brokerage account | No | Controlled by the trustee under trust terms, not the probate court. |
If ownership looks complicated, get advice early. Correct classification prevents double-counting and keeps the Commissioner of Accounts satisfied.
Inaccurate Valuation of Assets
Guessing values leads to tax issues and family disputes. Undervaluing or overvaluing can also hurt your final accounting and cash planning for debts.
Use qualified appraisers for real estate, vehicles, jewelry, and collectibles. For bank, brokerage, and retirement accounts, ask each institution for the official balance on the date of death, sometimes called the DOD value.
Date of death values matter for income tax basis and inventory reporting. The estate inventory is a snapshot as of that single date, not a rolling average.
Neglecting Digital Assets
Online photos, email, social media, crypto, domain names, seller accounts, and cloud storage get overlooked. Those items can carry real value, or at least sensitive data.
Search devices for password managers and two-factor apps. Review email for account alerts and crypto exchange notices, and look for cold wallets or seed phrases stored at home.
Virginia adopted the Uniform Fiduciary Access to Digital Assets Act, which sets rules for third-party access. Work with the platform’s tools and follow the statute to lawfully request content or records.
Poor Record-Keeping
Loose records make it tough to prepare accurate accountings and can slow court approval. The Commissioner of Accounts expects clean ledgers that track bank statements to the penny.
Set up one estate bank account, then log every deposit and expense with dates, amounts, payees, and purpose.
- Use a spreadsheet or accounting software with categories that match the court’s accounting format.
- Download monthly statements and reconcile right away.
- Save invoices and receipts as PDFs in dated folders. Paper copies are fine, too, just be consistent.
A tidy system from day one beats a shoe box scramble before your first accounting deadline.
Ignoring Creditor Claims
Skipping creditor notices or brushing off claims can lead to personal liability. Some claims are invalid, yet others must be paid under Virginia’s priority rules.
Provide timely notice to creditors as allowed by Virginia law, and keep proof of notice. Review each claim, check dates and documentation, and dispute anything that looks off with a short letter and supporting records.
Talk with a probate attorney on big or contested claims. One bad payment can ripple into the final accounting and trip up your approval.
Premature Asset Distribution
Handing out money or property too soon feels kind, but it can backfire. If debts, taxes, or expenses exceed what is left, the personal representative can face payback demands.
Wait until liabilities are satisfied, reserves are set, and your accounting posture looks solid. In many Virginia estates, the safest path is to distribute after the Commissioner of Accounts approves the final accounting.
If beneficiaries push for early funds, explain the risks in writing and keep that note with your records.
Failing to Update the Inventory
Estates change. You might find an extra bank account, or a bond that matures and moves to cash, or you get an appraisal that materially shifts a value.
Virginia allows amended inventories when needed. File an update if you discover new probate assets or if a valuation error would mislead the court.
Quick updates build trust with beneficiaries and keep your filings accurate from start to finish.
The Role of a Probate Attorney in Estate Inventory
A probate attorney helps you set a roadmap, document each step, and avoid traps that are easy to miss. That guidance can spare you from penalty letters and unnecessary hearings.
We assist with asset identification, valuation strategy, court deadlines, and communications with the Commissioner of Accounts. If a dispute pops up, you have a team ready to respond with clear records and a calm plan.
Local knowledge matters. Virginia’s deadlines, inventory forms, small procedural quirks, and the digital assets statute can differ from what you read on national sites.
Need Help with Estate Inventory? Contact Us Today
Our team is committed to helping Central Virginia families get estate administration right, with care and steady communication. If you want a clean inventory and a process that moves without drama, reach out for a consultation with an attorney who handles this work every day. Call us in Central Virginia at 434-589-2958 or in Powhatan at 804-598-1348, visit our Contact Us page, or email info@winget-hernandez.com. We aim for strong results and a smoother path for your family during a hard season.