In California, the personal representative of a probate estate must file a completed inventory and appraisal on Judicial Council Form DE-160 within four months of receiving Letters Testamentary or Letters of Administration. The filing lists every probate asset at its date-of-death value. The personal representative values cash and cash-equivalent items directly; a court-appointed probate referee appraises everything else. This document sets the numbers that drive fees, taxes, and distributions for the rest of the case, so getting it right matters.
The Four-Month Deadline and Form DE-160
The clock starts the day the court issues Letters. From that date, the personal representative has four months to file the inventory and appraisal.1Justia. California Probate Code 8800-8804 – General Provisions The court can extend the deadline when circumstances justify it, but the extension has to be requested. Silence doesn’t buy time.
Form DE-160 separates assets into two attachments. Attachment 1 holds the assets the personal representative values without help. Attachment 2 holds the assets the probate referee has to appraise.2Judicial Council of California. DE-160/GC-040 – Inventory and Appraisal The personal representative signs under penalty of perjury that the listed assets are accurate and complete, and copies go out to heirs, beneficiaries, and creditors so everyone can see what the estate holds.
What Assets Belong on the Inventory
Every asset the decedent owned at death that is subject to probate administration goes on the inventory, listed individually at fair market value as of the date of death.3California Legislative Information. California Probate Code 8802 – Inventory and Appraisal That includes:
- Real property — homes, commercial buildings, and vacant land, identified by address or assessor’s parcel number.
- Bank and brokerage accounts, certificates of deposit, and money market funds in the decedent’s name alone.
- Stocks, bonds, mutual funds, and cryptocurrency.
- Vehicles, jewelry, artwork, collectibles, furniture, and other tangible personal property of value.
- Business interests in sole proprietorships, partnerships, LLCs, or corporations.
- Debts owed to the decedent, including promissory notes and outstanding loans.
- Copyrights, patents, trademarks, and royalty streams.
- Life insurance and retirement proceeds where the estate itself, rather than an individual, is the named beneficiary.
Assets that pass outside probate stay off the inventory. Life insurance payable to a named person, retirement accounts with a designated beneficiary, payable-on-death bank accounts, joint tenancy property, and assets titled in a living trust all transfer directly and do not appear on Form DE-160. The inventory captures only what the probate court has authority to administer.
Community property adds a wrinkle. If the decedent was married, generally only the decedent’s one-half interest in community assets is a probate asset; the surviving spouse’s half is not. Separating those interests cleanly is one of the harder parts of preparing the inventory, especially for accounts built up over decades of marriage.
Who Values What
The personal representative and the probate referee split the appraisal work, and the law tells you which assets go to which.
Assets the Personal Representative Values
Cash and cash-equivalent assets are valued at face value by the personal representative. That covers currency, bank accounts, money market funds, checks issued before the date of death, and lump-sum insurance or retirement proceeds payable to the estate.4California State Controller’s Office. The Probate Referee Guide These items go on Attachment 1. A bank balance of $47,312 is worth $47,312, and there’s no need to hire anyone to confirm it. If the personal representative believes the fair market value of a cash-type asset actually differs from face amount, that asset shifts to the referee instead.
Assets the Probate Referee Appraises
Everything else goes to the probate referee. Real estate, securities, business interests, vehicles, jewelry, artwork, collectibles, and any other non-cash asset are listed on Attachment 2 for the referee to value.4California State Controller’s Office. The Probate Referee Guide The personal representative sends the referee supporting documents such as property deeds, financial statements, business records, and recent tax returns to help reach an accurate figure.
Probate referees are independent appraisers appointed by the California State Controller’s Office and assigned to specific counties. When the court designates a referee for a case, it selects from the Controller’s approved list for that county, or from another county if none is available locally.5California Legislative Information. California Probate Code 8920 – Designation and Removal of Probate Referee
The referee’s commission is one-tenth of one percent (0.1%) of the total appraised value of assets the referee actually appraises, plus reimbursement for actual and necessary expenses.6California Legislative Information. California Probate Code 8961 – Commission and Expenses of Probate Referee Cash-type items valued by the personal representative are not part of the base. On an estate with $800,000 in non-cash assets, the referee’s commission is $800. The estate pays this fee as an administration expense before distributions.7California Legislative Information. California Probate Code 8960 – Commission and Expenses of Probate Referee
How the Referee Appraises Assets
Every asset is valued as of the date of death. Not the filing date, not the appraisal date, not the distribution date.3California Legislative Information. California Probate Code 8802 – Inventory and Appraisal That single date keeps tax calculations and beneficiary shares consistent.
For real estate, the referee looks at comparable recent sales, condition, location, and any unusual features, valuing the property back to the date of death rather than to today. For publicly traded securities, the calculation is largely mechanical: the closing price on the date of death, or an average of high and low if the market was open. Business interests are harder. The referee examines financial statements, tax returns, revenue trends, and industry conditions, and closely held businesses often receive marketability and control discounts that can meaningfully reduce the appraised figure. Rare items like fine art, antiques, or intellectual property may require the referee to bring in a specialized independent appraiser.
Supplemental Inventories for Later-Discovered Assets
Estates rarely close on a single inventory. An overlooked bank account surfaces, a tax refund arrives, a piece of property in another county turns up. When the personal representative discovers a probate asset that wasn’t on the original filing, a supplemental inventory and appraisal must be filed within four months of learning about it.1Justia. California Probate Code 8800-8804 – General Provisions Same form, same referee involvement for non-cash assets, same signature under penalty of perjury. The court can extend that deadline when circumstances warrant.
Objecting to an Appraisal
Any interested person — a beneficiary, the personal representative, or a creditor — can challenge a valuation. The written objection must be filed with the probate court before the hearing on the petition for final distribution.8California Legislative Information. California Probate Code 8906 – Objection to Appraisal Disagreement alone is not enough. The objecting party needs evidence: a competing appraisal, comparable market data, or a financial analysis of the business or asset in question. The court can order a reappraisal by a different referee or an independent expert, and if the original number is adjusted, distributions, taxes, and creditor recoveries adjust with it. Waiting past the final distribution hearing gives up the right to object.
What Happens If the Deadline Is Missed
If the personal representative lets the deadline pass or refuses to file, any interested person can petition the court. The court can order the personal representative to file, remove them from the role, or impose personal financial liability for any harm the delay caused the estate or beneficiaries.1Justia. California Probate Code 8800-8804 – General Provisions That liability can include attorney’s fees, and if a bond was posted, damages attach to it. Beyond the sanctions, delay stalls the whole case: creditors can’t be properly noticed, distributions can’t move forward, and the estate keeps incurring costs while it sits open.
Why the Numbers Matter
The appraised values on Form DE-160 flow into three of the estate’s biggest financial questions.
Statutory Fees
California sets executor and attorney compensation by statute, and both are calculated on the same sliding scale applied to the inventory value:9California Legislative Information. California Probate Code 10800 – Compensation of Personal Representative
- 4% of the first $100,000
- 3% of the next $100,000
- 2% of the next $800,000
- 1% of the next $9,000,000
- 0.5% of the next $15,000,000
- A reasonable amount set by the court above $25,000,000
The fee base is the appraised inventory value plus certain gains and receipts, without subtracting mortgages or other debts. A house appraised at $800,000 with a $500,000 mortgage still counts as $800,000 for fee purposes. Appraisal accuracy therefore matters to every beneficiary, not just to the tax return.
Stepped-Up Basis
The inventory appraisal also sets the tax basis for inherited assets. Federal law generally gives property acquired from a decedent a new basis equal to its fair market value at the date of death.10Office of the Law Revision Counsel. 26 USC 1014 – Basis of Property Acquired From a Decedent Stock bought decades ago for $10,000 and worth $200,000 at death gives the beneficiary a $200,000 basis; a sale at $200,000 produces no capital gain. An artificially low appraisal saddles the beneficiary with a lower basis and more tax on eventual sale; an inflated appraisal can draw IRS scrutiny. California community property receives a full step-up on both halves when one spouse dies, which makes accurate valuation especially valuable to the surviving spouse.
Federal Estate Tax
For 2026, the federal estate tax exemption is $15,000,000 per person.11Internal Revenue Service. What’s New – Estate and Gift Tax Most California estates fall below the threshold and owe nothing federally. For larger estates, the inventory numbers feed directly into IRS Form 706, and the IRS challenges valuations it considers too low, particularly for closely held businesses and real property.
When the Inventory Process Doesn’t Apply
Not every estate needs formal probate. California allows a simplified small estate procedure when the gross value of the decedent’s California property does not exceed $208,850, as adjusted effective April 1, 2025, with the next adjustment set for April 1, 2028.12California Courts. DE-300 – Maximum Values for Small Estate Set-Aside and Disposition The threshold excludes certain assets, including joint tenancy property, vehicles, and amounts in trust.13California Legislative Information. California Probate Code 13100 – Affidavit for Collection or Transfer of Personal Property If the estate qualifies, successors can collect assets by affidavit 40 days after death and skip probate court, and with it the DE-160 process, entirely.