What to Include in an Alabama Probate Inventory

When someone passes away in Alabama and their estate enters probate, one of the executor's first jobs is putting together a detailed inventory of everything the deceased person owned. This isn't optional paperwork it's a legal requirement under Alabama probate law. Failing to include the right assets, or leaving things out entirely, can delay the process, create disputes among beneficiaries, and even expose the executor to personal liability. If you've been named as an executor, understanding exactly what goes on that inventory list protects both you and the people counting on you to handle things right.

What is a probate inventory, and why does Alabama require one?

A probate inventory is a formal document that lists every asset owned by the deceased person at the time of their death. In Alabama, the executor (also called a personal representative) must file this inventory with the probate court, typically within a set period after being appointed. The court uses this inventory to get a clear picture of the estate's total value, which helps determine how debts are paid and how remaining property is distributed to heirs.

Alabama Code § 43-2-835 requires the personal representative to file a verified inventory of all property belonging to the estate. This includes property that's easy to find like a bank account and property that's harder to track down, like a small business interest or a debt someone owed the deceased.

The inventory process is a core part of the asset inventory paperwork every Alabama executor must complete, and getting it right the first time saves weeks or months of back-and-forth with the court.

What types of assets must an executor include on the Alabama probate inventory?

This is where most executors need clarity. The short answer: if the deceased person owned it, controlled it, or had a right to it at the time of death, it probably belongs on the inventory. Here's a more specific breakdown:

Real property

Houses, condominiums, and land
Rental properties and commercial buildings
Vacant lots
Timeshares with real property rights
Mineral rights, oil and gas interests, and timber rights

Real estate values should reflect fair market value at the date of death, not the original purchase price. An appraisal may be needed for larger or disputed properties.

Financial accounts

Checking and savings accounts (solely owned)
Certificates of deposit (CDs)
Money market accounts
Cash on hand

Investments and securities

Stocks, bonds, and mutual funds
Brokerage accounts
Retirement accounts (IRAs, 401(k)s, pensions) if the estate is the beneficiary
U.S. Treasury bonds

Personal property

Vehicles (cars, trucks, boats, motorcycles, RVs)
Furniture and household goods
Jewelry and collectibles
Art, antiques, and firearms
Electronics and equipment

Business interests

Sole proprietorships
Ownership shares in LLCs, partnerships, or corporations
Accounts receivable owed to a business the deceased owned

Debts owed to the deceased

If someone borrowed money from the deceased and hadn't repaid it, that's an estate asset. The executor should list promissory notes, personal loans, and any outstanding payments owed to the person who passed away.

Life insurance and death benefits payable to the estate

If a life insurance policy names the estate as the beneficiary rather than a specific person, those proceeds go on the inventory. Policies with named individual beneficiaries bypass the estate and don't belong on the list.

Claims and lawsuits

If the deceased had a pending lawsuit or a valid legal claim (like a personal injury case), that potential recovery is an estate asset and needs to be listed.

Preparing a thorough inventory of all these categories takes time and attention. For step-by-step guidance on how to actually put this document together, see our guide on preparing an asset inventory as an executor in Alabama.

What assets should NOT go on the probate inventory?

Not everything the deceased person had access to is technically part of the probate estate. Knowing the difference matters just as much as knowing what to include.

Jointly owned property with rights of survivorship This passes automatically to the surviving owner by operation of law, not through probate.
Assets with designated beneficiaries Life insurance payable to a named person, retirement accounts with a named beneficiary, and payable-on-death (POD) bank accounts go directly to the named beneficiary.
Living trust assets Property held in a revocable living trust is distributed according to the trust terms, outside probate.
Transfer-on-death (TOD) securities Brokerage accounts or stock registrations with a TOD designation bypass the estate.

Excluding non-probate assets is just as important as including probate ones. Putting a jointly held bank account on the inventory when it already passed to the co-owner creates confusion and delays.

How does the executor determine the value of each asset?

Alabama probate courts expect the inventory to show the fair market value of each asset as of the date of death. Here's how that typically works for different asset types:

Bank accounts and CDs Use the balance on the date of death. Contact the financial institution for exact figures.
Real estate A professional appraisal is the most reliable approach. County tax assessments are often outdated and don't reflect true market value.
Vehicles Use a tool like Kelley Blue Book or NADA Guides, or get a dealer appraisal for specialty vehicles.
Investments and securities Use the closing price on the date of death. Your brokerage can provide this.
Household items and personal property For items of significant value (jewelry, art, collectibles), get a professional appraisal. Everyday household goods can be estimated at fair market resale value.
Business interests A business valuation may be necessary, especially for LLCs or partnerships with complex structures.

The Alabama Court of Probate may request supporting documentation for values, so keeping appraisals, account statements, and receipts organized from the start is important. If you need help understanding the full documentation process, this overview of Alabama's estate executor documentation requirements covers what courts expect.

What happens if the executor leaves assets off the inventory?

Omitting assets whether by accident or on purpose creates real problems. Beneficiaries can petition the court to compel a corrected inventory. If the court finds that the executor was negligent or intentionally hid assets, the executor can be held personally liable for any losses to the estate. In serious cases, the court can remove the executor and appoint someone else.

Most omissions happen because executors don't realize certain items count as estate assets. A forgotten safety deposit box, an old savings bond, a pending tax refund, or a small business receivable are all commonly missed. Doing a thorough search of the deceased person's records tax returns, mail, email, and filing cabinets helps catch what might otherwise slip through.

Do small estates in Alabama follow the same inventory rules?

Alabama does offer a simplified process for small estates, but the inventory requirement doesn't disappear it just looks different. Under Alabama Code § 43-2-690, if the estate's value falls below a certain threshold and no real property is involved, the executor can file a simplified sworn statement instead of going through full probate proceedings.

Even in small estate situations, the executor still needs to identify and list all assets accurately. The main difference is the level of court supervision. For a closer look at how small estate filing works, our small estate asset inventory breakdown for Alabama executors explains the process step by step.

What form does the Alabama probate inventory use?

Alabama doesn't provide a single statewide inventory form that every county uses the same way. Some probate courts have their own forms; others accept a written inventory that follows the statutory requirements. Regardless of the format, the inventory must include:

A description of each asset
The fair market value of each asset on the date of death
A total estate value
The executor's verification (sworn statement that the inventory is complete and accurate)

Before filing, check with the specific probate court where the estate is being administered to confirm their preferred format and filing requirements. You can learn more about Alabama executor inventory form requirements for probate court to make sure you're using the right format from the start.

Common mistakes executors make with the probate inventory

Forgetting to search for hidden assets Old 401(k) accounts, insurance policies from former employers, and digital assets (cryptocurrency, online payment accounts) are easy to overlook.
Using outdated or inaccurate values Listing a home at the purchase price from 20 years ago doesn't reflect its current fair market value.
Confusing non-probate assets with probate assets Adding jointly held property or POD accounts inflates the estate value and creates confusion during distribution.
Not including debts owed to the deceased These are assets, even if collecting them is uncertain.
Filing late Alabama courts set deadlines for inventory filing. Missing the deadline can result in court orders or penalties.
Failing to update the inventory If new assets are discovered after the initial filing, the executor should file an amended inventory.

Can the executor get professional help with the inventory?

Yes, and in many cases it's the smart move. Executors aren't expected to be financial experts. Hiring a probate attorney, a CPA, or a professional appraiser can make the process faster and more accurate. The estate typically pays for these professional services, not the executor personally. According to the Alabama State Bar, consulting with an attorney who practices in probate law is one of the best steps an executor can take early in the process.

When the estate includes complex assets like a family business, multiple real estate properties, or extensive investment portfolios professional guidance helps prevent costly mistakes and keeps the process moving forward.

Practical checklist for executors listing assets on the Alabama probate inventory

☐ Obtain certified copies of the death certificate (you'll need several)
☐ Secure the deceased person's home, vehicles, and valuables
☐ Gather all financial records bank statements, tax returns, investment statements, insurance policies
☐ Search for digital assets email accounts, online banking, cryptocurrency wallets, social media
☐ Contact financial institutions to confirm account balances as of the date of death
☐ Schedule appraisals for real estate, valuable personal property, and business interests
☐ Identify and separate non-probate assets (jointly held accounts, POD/TOD designations, trust assets)
☐ List every remaining probate asset with a description and fair market value
☐ Include debts owed to the deceased and any pending legal claims
☐ Verify the inventory format required by your specific Alabama probate court
☐ Complete the sworn verification statement
☐ File the inventory before the court deadline
☐ Keep copies of everything appraisals, statements, the filed inventory in an organized file

Tip: Start the inventory process within the first few weeks of being appointed. Waiting makes it harder to track down records and values, and the court deadline is already ticking. If you need the official paperwork to get started, review the full inventory paperwork requirements before your first filing.