Why File an Amended Inventory Showing Zero Value When Guardianship or Trust Assets Remain Outside Your Custody in North Carolina?
Detailed Answer
Under North Carolina law, personal representatives and guardians must file an inventory of all estate assets they hold. The requirement appears in North Carolina General Statutes § 28A-13-2, which mandates that a personal representative complete and file an inventory within 90 days after appointment. Although this statute applies directly to estates, courts apply similar principles in guardianship and trust scenarios to monitor the assets subject to their orders.
If all assets originally subject to probate, guardianship or trust administration remain outside your custody—for example, assets held in a separate trust account or managed by a co-trustee—you may not have tangible property to list. In that case, filing an amended inventory showing zero value serves several important purposes:
- Compliance with Court Orders: The clerk of court needs a record. An amended inventory that reports zero estate assets shows you are fulfilling your duty to keep the court informed. Without it, the court may assume you failed to inventory certain property.
- Protection from Surcharge: Filing the amended inventory creates a clear record that you never had custody of assets that remain outside the estate. This record helps guard you against claims that you mismanaged or lost estate property.
- Facilitates Estate Closing: When the court sees zero value listed, it can move the case toward closing. The court will understand there is nothing left to administer and that creditors or beneficiaries need not wait for additional assets.
- Clear Communication: Beneficiaries and interested parties gain certainty. They see that all remaining assets are under a trust’s management or held by another party. This transparency prevents misunderstandings and delays.
In guardianship cases, North Carolina General Statutes Chapter 35A sets out accounting requirements. While guardians file annual and final accountings, an amended inventory showing zero assets also clarifies that no additional funds or property passed through your hands. The same logic applies if assets sit in a trust, managed by a trustee who is separate from the personal representative or guardian.
When you file the amended inventory, use the same form prescribed for the original inventory. Check the boxes that indicate no assets are under your control and provide a brief explanation: “Assets remain held in [Name of Trust or Custodian].” Include a reference to the trust agreement or custodial arrangements.
Key Points to Remember
- File the amended inventory as soon as you confirm no assets are in your custody.
- Use the court’s official Inventory and Appraisement form.
- Include a concise explanation referencing the trust agreement or custodial documents.
- Keep a copy of the filed inventory in your case file for recordkeeping.
- Prompt filing helps you comply with G.S. 28A-13-2 and avoid possible sanctions.
Why It Matters
Filing an amended inventory that shows zero value is not just a formality. It documents your compliance with statutory deadlines. It protects you from potential personal liability. It also provides peace of mind to beneficiaries who want to know the estate’s status. By taking this simple step, you demonstrate professionalism and protect everyone’s interests.
Next Steps
If you are a personal representative, guardian or trustee and need guidance on preparing an amended inventory or any other probate filings, reach out to us. Pierce Law Group has attorneys who guide executors, guardians and trustees through North Carolina’s probate process every day.
Contact our team at Pierce Law Group to discuss your situation. Email us at intake@piercelaw.com or call us at (919) 341-7055. We offer a clear roadmap for closing estates, finalizing guardianships and managing trusts under North Carolina law.
References: North Carolina General Statutes § 28A-13-2: ncleg.gov/GS_28A-13-2
