What is the real purpose of an estate inventory?

Learn about the importance of an estate inventory in managing the assets of a deceased person. This crucial step facilitates the distribution of assets while maintaining harmony among the heirs.

An estate inventory is sometimes a necessary step before the distribution of the decedent’s assets. It serves to determine the value of the decedent’s personal and real property by preparing a report that includes a list of the heirs and their status, the locations where the inventory was conducted, a description and appraisal of the assets, as well as the liabilities (loans, debts, bequests). 

The inventory may be prepared at the request of any heir, and the cost is €80 excluding tax, plus registration and publication fees.
 

An inventory is required in certain cases, such as when an heir needs to be protected (a minor child, a person under guardianship or conservatorship, or an absent heir) or when one of the heirs retains the usufruct of the decedent’s personal property. It is also mandatory if an heir accepts the estate up to the amount of the net assets (assets minus liabilities), to ensure that the heir is not liable for the decedent’s debts beyond the heir’s share of the estate.
 

An heir may also request an inventory to facilitate the equitable distribution of the decedent’s assets or to reduce the amount of estate taxes. Indeed, without an inventory, the decedent’s personal property is valued at a flat rate of 5 percent of his or her estate. In some cases, it may be advantageous to conduct an inventory to obtain a lower valuation.
 

The heirs may choose the auctioneer responsible for the inventory, or they may entrust this decision to the notary. In the event of a disagreement, the Tribunal de Grande Instance (TGI) will decide the matter. Once the inventory has been completed, the notary proceeds with the division of the estate among the heirs.