Jan102026
Probate Q&A Series

What exactly must be included in a probate inventory, and how should an IRA be listed if it holds cash versus securities? – North Carolina

Short Answer

In North Carolina, the probate inventory is a sworn list of the decedent’s assets that are part of the estate (and certain assets that could be pulled into the estate if needed to pay claims), shown at fair market value as of the date of death and described with enough detail for the Clerk of Superior Court to review. An IRA is listed on the inventory only if it is payable to the estate (or otherwise becomes an estate asset); if it is payable to a named beneficiary, it is usually not listed as an estate asset. If an IRA that belongs on the inventory holds cash, it is typically described like a cash/bank-type account; if it holds securities, it is typically itemized like an investment account (showing the holdings and date-of-death values).

Understanding the Problem

In North Carolina probate, a personal representative must file an inventory with the Clerk of Superior Court after qualification. The decision point is what property must be listed on that inventory and how to describe and value it, especially when a retirement account like an IRA contains either cash or marketable securities. The practical issue is preparing a court-acceptable inventory using date-of-death statements while keeping the filing focused on what the court requires.

Apply the Law

North Carolina requires the personal representative to file an inventory that identifies estate property and states fair market value as of the date of death. The inventory is more detailed than a rough “preliminary” list; it is meant to let the Clerk confirm what the estate owns, how it is described, and how it is valued. As a general rule, non-probate assets that pass directly to a named beneficiary (for example, many IRAs) are not listed as estate assets on the probate inventory, while assets payable to the estate are listed. The inventory is filed with the Estates Division of the Clerk of Superior Court in the county where the estate is opened, and it is typically due within three months after qualification.

Key Requirements

  • Include the right property: List probate assets owned by the decedent (and, depending on how the local Clerk handles the form, certain “recoverable” or “reachable” property categories that could be used to pay claims if needed). Do not treat beneficiary-designated assets as estate assets unless they are payable to the estate or actually become estate property.
  • Describe assets with enough detail: The inventory should identify each item clearly (for example, bank accounts listed separately; investment holdings grouped by issuer and identified by type and quantity). Avoid listing full account numbers.
  • Use date-of-death fair market value: Values should be the actual fair market value at the date of death (or “undetermined” if a valuation is still pending). Supporting statements are commonly used to back up the values.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the personal representative plans to provide date-of-death statements and IRA details so the inventory can be prepared as a court filing. That approach fits North Carolina practice because the inventory is driven by (1) what the estate owns or can reach, (2) how each asset is described, and (3) the date-of-death value. For the IRA, the first step is confirming whether it is payable to the estate (inventory item) or payable to a named beneficiary (usually not an inventory item as an estate asset). If it is an estate asset, the IRA can be described based on what it holds at death: cash-like positions versus securities holdings.

How an IRA is typically listed (cash vs. securities)

  • Step 1: Confirm whether the IRA belongs on the probate inventory: If the IRA is payable to a named beneficiary, it usually passes outside probate and is not listed as an estate asset on the inventory. If the IRA is payable to the estate (or has no effective beneficiary and becomes payable to the estate under the plan terms), it is typically listed.
  • If the IRA holds cash (or a cash sweep/money market position): List it like a cash-type account: “IRA (payable to estate), cash balance as of date of death: $____,” using the date-of-death statement. The description should identify the institution and account type without publishing the full account number.
  • If the IRA holds securities (stocks, bonds, mutual funds, ETFs): List it like an investment account: identify the IRA and then itemize or group holdings with date-of-death values (for example, number of shares and per-share value as of the date of death, or a statement-supported total by holding/issuer). Accrued interest or dividends that exist as of the date of death are typically treated as part of the date-of-death value.

Process & Timing

  1. Who files: The personal representative (or counsel on the personal representative’s behalf). Where: Estates Division, Clerk of Superior Court in the county where the estate is opened in North Carolina. What: The court’s inventory form (commonly the AOC estate inventory form used by that county) with supporting date-of-death statements available if requested. When: Commonly due within 3 months after qualification, unless the Clerk sets a different deadline.
  2. Clerk review and follow-up: The Clerk may reject or question an inventory that lacks detail (for example, lump-sum “investments” with no identification) or that appears inconsistent with earlier filings. Counties can vary in how much backup documentation the Clerk wants to see at filing.
  3. Later updates through accountings: After the inventory, the personal representative reports estate activity through annual and/or final accountings until the estate closes. If an asset is not an estate asset but is later used to pay estate claims, it may need to be addressed in the accounting to the extent used.

Exceptions & Pitfalls

  • Beneficiary designations control whether an IRA is an estate asset: A common mistake is listing all retirement accounts on the probate inventory even when they pass directly to a beneficiary. The safer approach is to confirm the payable-on-death/beneficiary status first.
  • Not enough detail for securities: Listing “IRA investments: $___” without identifying holdings can trigger a Clerk request for more detail. Date-of-death statements usually provide the needed breakdown.
  • Using the wrong value date: The inventory generally uses date-of-death fair market value, not the value on the date the statement is printed and not the value after the market changes.
  • Account numbers and privacy: Inventories are court records. Avoid including full account numbers; use institution name and a shortened identifier if needed.
  • County practice differences: Some Clerks want more itemization (or specific supporting documents) than others. When in doubt, confirming local expectations before filing can prevent rejections and delays.

Conclusion

In North Carolina, a probate inventory should list estate assets (and certain reachable categories, depending on the form and local practice) with clear descriptions and date-of-death fair market values for the Clerk of Superior Court. An IRA is typically listed only if it is payable to the estate; if it is, cash positions are described like cash/bank-type balances, while securities are described with investment-style itemization and date-of-death values. The next step is to file the inventory with the Clerk by the deadline set at qualification (often about three months after qualification).

Talk to a Probate Attorney

If an estate inventory needs to be filed but the goal is to keep the work limited to court-required probate filings (including correct asset classification and date-of-death valuation), our firm has experienced attorneys who can help explain what the Clerk expects and what must be included. 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.

Category: Probate Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.