Module 04 Content
Purpose- To demonstrate the ability to accurately correct estate financial documents.
Course Competency: Correct financial errors in property and estate planning cases.
Instructions
Content:
The firm is currently in the middle of probating the estate of Frank Nussbaum. You have taken over the case from a paralegal who has recently left the firm, and need to review her work to ensure the documents are accurate. When you review the inventory you notice some discrepancies. Below is a PDF of her work:
Previous Paralegal Inventory
You have been tasked with correcting the inventory using the form located below, to ensure the inventory is accurate.
Inventory Form
You can attach several copies of the form if needed to include all categories of property. You should use the following facts in drafting the inventory:
123 Main Street, Anywhere TN 78282 valued at 100,000 with $50,000 left on a mortgage
Rings valued at $1000
Household furnishings valued at $500 through a goodwill estimate
Bank account at Main Bank #28299992 with balance of $11,548
Life insurance policy payable directly to son Ethan in the amount of $10,000
Stock in Apple in the amount of $150,000
Stock in BP Oil in the amount of $7,845
Mutual Funds through First Chance Brokerage, # 387772 valued at $45,124
2015 Chevy Tahoe, worth $3,400 according to Kelly Blue Book
PCS CODE: INV
TCS CODE: INVF
Approved, SCAO
STATE OF MICHIGAN
PROBATE COURT
COUNTY OF
In the matter of
I,
FILE NO.
INVENTORY
AMENDED
(DECEDENT ESTATE)
First, middle, and last name
, personal representative, submit the following as a complete
Name (type or print)
and accurate inventory of all the assets of the estate and the fair market valuations as of
.
Date of death
PERSONAL PROPERTY AND REAL PROPERTY DESCRIPTION If property has been used to secure a loan (including an equity line of
credit), show the nature and amount of the lien. Definitions and instructions for completing the inventory are below and on the other side of
this form. The values of all property are calculated as of the decedent’s date of death. *For real property only, if the date of death is on or after
March 28, 2013, the gross value of a parcel can be reduced by any lien amount on that parcel; however, the remaining inventory value of that
parcel cannot be less than zero. For personal property, the gross value and inventory value are the same. (Attach separate sheet if necessary.)
Legal description of real property
Gross value
Lien amount
Inventory value (less lien)*
Legal description of real property
Gross value
Lien amount
Inventory value (less lien)*
Description of personal property
Gross value
Lien amount
Inventory value
Description of personal property
Gross value
Lien amount
Inventory value
Description of personal property
Gross value
Lien amount
Inventory value
Description of personal property
Gross value
Lien amount
Inventory value
Description of personal property
Gross value
Lien amount
Inventory value
Description of personal property
Gross value
Lien amount
Inventory value
Totals
Total Gross Value
Total Inventory Value
I declare under the penalties of perjury that this inventory has been examined by me and that its contents are true to the best
of my information, knowledge, and belief.
Date
Attorney signature
Signature
Attorney name (type or print)
Bar no.
Name (type or print)
Address
Address
City, state, zip
Telephone no.
City, state, zip
Telephone no.
USE NOTE: If this form is being filed in the circuit court family division, please enter the court name and county in the upper left-hand corner of the form.
Do not write below this line – For court use only
PC 577
(9/16)
INVENTORY (DECEDENT ESTATE)
MCL 700.3706, MCL 700.3707, MCR 5.307, MCR 5.310, MCR 5.409(B)
DEFINITIONS:
• Real property means land, including a building or house that is built on the land.
• Personal property means everything that a person owns except real property. Personal property includes bank accounts
and checking accounts.
INSTRUCTIONS TO COMPLETE THE INVENTORY:
1. List all real and personal property in the column “Personal Property and Real Property Description.”
2. When listing real property, provide the legal description of the property and the name of any other owner.
a. If real property has been used to secure a loan (including an equity line of credit), show the nature and amount of the lien,
and reduce the gross value (value as of date of death) by the amount of the lien, but the inventory value cannot be less
than zero.
b. If the value of real property is determined by an appraisal, include the appraiser’s name and address and a description of
the property appraised.
c. If this form is filed in a guardianship, real property that the ward owns jointly or in common with others must be listed along
with the type of ownership. The court may require additional information to support the value of property that is stated in
the inventory.
d. For each parcel of real property, calculate the value individually.
3. When listing personal property, provide enough detail to adequately determine the value. Some items should be listed
separately and some items should be combined under one category. Provide the name and address of each financial
institution listed. The address of a financial institution shall be either that of the institution’s main headquarters or the branch
used most frequently by the personal representative.
a. Examples of items that should be listed and valued separately are:
• Automobiles
• Life insurance if payable to the estate
• Jewelry
• Annuities
• Bank accounts
• Mutual funds
• Antiques
• Stocks and bonds
• Any other individual item of high value
b. Examples of items that can be listed in categories are household items such as dishes, flatware, curtains, linens, utensils,
clothing, furnishings, etc. These items can be grouped into several categories or combined into one category.
c. If personal property has been used to secure a loan, show the nature and amount of the lien, but do not deduct the lien
amount from the gross value (value as of the date of death) of any item of personal property.
d. If the value of personal property is determined by an appraisal, include the appraiser’s name and address and a description
of the property appraised.
e. If this form is filed in a guardianship, personal property that the ward owns jointly or in common with others must be listed
along with the type of ownership. The court may require additional information to support the value of property that is
stated in the inventory.