Jan92026
Probate Q&A Series

What goes on the probate inventory, and how do we determine fair values for real estate and vehicles as of the date of death? – North Carolina

Short Answer

In North Carolina, the probate inventory is a sworn list of the decedent’s probate assets (and certain “recoverable” assets) with a good-faith fair market value as of the date of death. Real estate is typically valued using a reasonable market-based method (often a broker price opinion, comparable sales, or a formal appraisal), and vehicles are typically valued using a recognized used-car valuation source and supported by basic identifying details (year/make/model/VIN). Assets that pass outside probate—like many beneficiary-designated accounts—usually do not go on the inventory unless they are payable to the estate or otherwise need to be brought in to pay claims.

Understanding the Problem

In a North Carolina estate administration, a personal representative must decide what property belongs on the probate inventory filed with the Clerk of Superior Court and how to assign a fair value as of the date of death. The single decision point is whether an item is part of the probate estate (or must be listed as “recoverable”) and, if it is, what date-of-death value should be reported for real estate and vehicles. The inventory is meant to be complete and accurate, but it is also meant to be practical: it uses reasonable descriptions and good-faith values rather than perfect precision for every household item.

Apply the Law

North Carolina requires the personal representative to file an inventory with the Clerk of Superior Court and to describe each listed asset with a true and accurate fair market value as of the date of death. “Fair market value” generally means the price a willing buyer and willing seller would agree on in an open market, with neither side forced to act. For most estates, the inventory is due within about three months after qualification, although local practice and extensions can affect timing.

Key Requirements

  • Include the right assets: List probate assets owned in the decedent’s name alone and any assets payable to the estate; list certain other items only if they are “recoverable” or must be used to pay claims.
  • Use date-of-death fair market value: Report a good-faith fair market value as of the date of death (not what the item sells for later, and not what it cost years ago).
  • Describe assets clearly: Provide enough detail to identify the asset (for vehicles, that commonly includes make/model/year and VIN; for real estate, the location and type of property and how title was held).

What the Statutes Say

Analysis

Apply the Rule to the Facts: When an estate includes real estate and vehicles, the personal representative typically lists (1) any solely owned real property and any tenant-in-common interest the decedent owned, and (2) vehicles titled in the decedent’s name (or otherwise payable to the estate). Each listed item should show a good-faith fair market value as of the date of death, supported by a reasonable method (comparable sales or an appraisal for real estate; a recognized used-vehicle valuation source and condition/mileage notes for vehicles). If an asset passes by survivorship or beneficiary designation to someone other than the estate, it usually does not go on the probate inventory unless it must be treated as “recoverable” to pay claims or is otherwise directed into the estate.

How to value real estate (date of death)

  • Start with the ownership question: If the decedent owned the property solely (or as a tenant in common), it is typically listed. If the property passed automatically by survivorship (for example, certain joint ownership arrangements), it is often not a probate asset.
  • Use a market-based valuation method: Common, defensible approaches include a comparative market analysis (CMA) from a real estate agent, a broker price opinion (BPO), or a formal appraisal by a licensed appraiser. The more unusual the property (unique home, acreage, commercial property, major deferred maintenance), the more a formal appraisal tends to reduce disputes.
  • Document the “as of date of death” basis: Whichever method is used, it should be tied to the date of death (or as close as reasonably possible) and based on comparable sales and condition at that time.
  • Separate income items when relevant: If the property was rented, accrued rent as of the date of death is typically treated as an estate asset separate from the real estate value.

How to value vehicles (date of death)

  • Identify the vehicle precisely: List year/make/model and the VIN, and note major condition issues that affect value.
  • Use a recognized pricing source: A common approach is to use a widely accepted used-vehicle valuation guide and select a value that matches mileage, trim level, and condition as of the date of death.
  • Cross-check with county tax value when helpful: The county’s property tax value for a registered vehicle can be a reasonableness check, but it may not perfectly match fair market value on the exact date of death.

What usually goes on the probate inventory (and what usually does not)

  • Usually included: Bank accounts titled solely in the decedent’s name (date-of-death balance plus accrued interest); stocks/bonds/mutual funds (date-of-death value plus accrued dividends/interest); vehicles titled in the decedent’s name; tangible personal property (often grouped for ordinary household items, but listed separately for significant or specifically gifted items); notes receivable; business interests (often requiring additional valuation work).
  • Often excluded as non-probate: Life insurance and retirement benefits payable to a named beneficiary (not the estate); many jointly owned assets with survivorship; assets held in trust that are not directed into the estate.
  • Sometimes treated as “recoverable” or later accounted for if used: Certain payable-on-death accounts may be handled differently by county practice; if estate funds are taken from such an account to pay estate claims, it often must be reflected in later accountings to the extent used.

Process & Timing

  1. Who files: The personal representative (executor/administrator). Where: The Clerk of Superior Court (Estates) in the county where the estate is opened. What: The estate inventory form required by the Clerk (often an AOC inventory form). When: Commonly within about 3 months after qualification, unless the Clerk extends the deadline.
  2. Gather support for values: Obtain a CMA/BPO or appraisal for real estate as needed; obtain a valuation printout or report for each vehicle and record mileage/condition as of the date of death.
  3. File and keep backup: File the inventory with the Clerk and keep the valuation support in the estate records in case questions arise from heirs, creditors, or the court.

Exceptions & Pitfalls

  • Mixing probate and non-probate assets: Listing beneficiary-designated accounts or survivorship property as probate assets can create confusion and disputes; leaving out assets payable to the estate can cause compliance issues.
  • Using the wrong valuation date: The inventory generally calls for date-of-death values; later sale prices can be very different and do not automatically “fix” an incorrect inventory value.
  • Undervaluing or overvaluing without support: A “guess” value can trigger objections. A short paper trail (CMA/appraisal; vehicle valuation printout; notes on condition) usually prevents problems.
  • Not itemizing high-value or specifically gifted items: Significant items and items specifically mentioned in a will should be listed distinctly rather than buried in a single household-goods number.

Conclusion

In North Carolina, the probate inventory should list the estate’s probate assets with a good-faith fair market value as of the date of death, with enough detail to identify each item. Real estate values are typically supported by comparable sales evidence (often a CMA/BPO or appraisal), and vehicle values are typically supported by a recognized used-vehicle valuation source matched to mileage and condition. The practical next step is to gather valuation support and file the inventory with the Clerk of Superior Court within about three months after qualification (or request an extension if needed).

Talk to a Probate Attorney

If an estate inventory involves real estate, vehicles, and questions about what must be listed versus what passes outside probate, our firm has experienced attorneys who can help clarify what belongs on the inventory and how to document date-of-death values. 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.