How is the value of a house handled for the estate inventory if the purchase price is different from the current value? – North Carolina

Short Answer

In North Carolina, the house is generally listed on the estate inventory at its fair market value as of the date of death, not what the parent paid for it. The purchase price can be a helpful reference point, but it usually does not control the inventory value. If the exact value is not known by the inventory deadline, the personal representative can often file with a good-faith estimate or list the value as “undetermined” while an appraisal is pending, then correct it later.

Understanding the Problem

In a North Carolina estate administration, a personal representative must file an estate inventory with the Clerk of Superior Court. The question is how to report the value of a home on that inventory when the home’s old purchase price differs from what the home is worth now, especially when asset information is still being gathered and an extension has been requested.

Apply the Law

For probate inventory purposes, North Carolina practice focuses on reporting assets at their fair market value as of the decedent’s date of death. Fair market value generally means the price a willing buyer would pay a willing seller in an arm’s-length sale, with neither side under pressure and both having reasonable knowledge of the property. A personal representative may use reasonable sources to reach a good-faith value, and may hire a disinterested appraiser to support the valuation when needed.

Key Requirements

Use date-of-death value (not purchase price): The inventory is aimed at the home’s fair market value at the time of death, even if the home was bought decades earlier.
Make a good-faith valuation and document the basis: A personal representative should use reasonable information (for example, an appraisal or reliable market data) and be prepared to explain how the number was reached if the Clerk asks.
Update if the value is unknown or later changes: If the home is still being appraised or the value is not reasonably determined by the filing deadline, the inventory can reflect that and later be corrected through a supplemental filing or in the accounting process, depending on local practice.

What the Statutes Say

N.C. Gen. Stat. § 30-3 (Valuation of property) – Sets out a North Carolina valuation rule using fair market value and generally measuring value as of the date of death (in the elective share context), which aligns with how probate valuations are commonly approached in estate administration practice.

Analysis

Apply the Rule to the Facts: The estate appears to include a home, and the personal representative needs to complete a required inventory while still gathering information from banks and other sources. For the house, the relevant number for the inventory is typically the home’s fair market value on the date of death, not the parent’s purchase price. If the estate does not yet have enough information to support a reliable value (for example, no appraisal and no clear market data), the inventory can often be filed with an “undetermined” value while the appraisal is pending, then updated.

Process & Timing

Who files: The personal representative (executor/administrator). Where: The Estates Division of the Clerk of Superior Court in the county where the estate is administered. What: The court’s estate inventory form (commonly an AOC estate inventory form used statewide). When: The inventory is typically due on a court-set deadline after qualification; if an extension was granted, the new deadline controls.
How the house value is determined: Use a reasonable date-of-death fair market value method, such as a professional appraisal, a comparative market analysis, or other reliable valuation sources. Keep notes and backup documentation in the estate file in case the Clerk requests support.
How corrections are handled: If the inventory is filed before the value is finalized, the personal representative should update the court record later (often by supplemental inventory or by reporting the corrected value in the next required filing, depending on the county’s preference).

Exceptions & Pitfalls

Using purchase price instead of date-of-death value: The original purchase price often understates (or sometimes overstates) today’s market value and can create problems with beneficiaries and court review.
Relying on a tax value without checking market reality: County tax assessments can be a starting point, but they may not match fair market value. If the number is likely to be disputed, an independent appraisal can reduce conflict.
Waiting too long to start valuation: Appraisers can have scheduling delays, and gathering deed details, parcel numbers, and mortgage information takes time. Starting early helps meet the inventory deadline.
Not identifying the property clearly: The inventory should describe the real estate clearly (address and other identifying information commonly used by the Clerk) so it can be matched to title records later if the property is sold or transferred.

For related guidance on the inventory process, see what the estate inventory is and what it must include and what to gather to complete the inventory and common timing issues.

Conclusion

In North Carolina probate, a house is generally listed on the estate inventory at its fair market value as of the date of death, not the parent’s purchase price. The personal representative should use a reasonable valuation method (often an appraisal) and keep support for the number used. If the value cannot be determined by the inventory deadline, the next step is to file the inventory with the Clerk of Superior Court by the court’s deadline (or the extended deadline) and then update the value once reliable information is available.

Talk to a Probate Attorney

If a personal representative is dealing with an estate inventory and needs to value a home as of the date of death while records are still being gathered, our firm has experienced attorneys who can help explain options, documentation, and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.