How to Value Estate Assets for the Inventory

Within 90 days of being appointed as executor or administrator in North Carolina, you must file an inventory of the estate’s assets with the Clerk of Superior Court. That inventory requires more than a list of what the deceased owned – it requires a dollar value for every asset, determined as of the date of death. For some assets, like a bank account, the value is obvious. For others – a house, a business interest, a collection of antiques, jewelry, or artwork – determining the right value is genuinely difficult, and getting it wrong can create problems with the IRS, the Clerk, beneficiaries, and creditors.

This guide explains how to value every type of estate asset you are likely to encounter, what standard the Clerk and the IRS expect, and how to meet the 90-day deadline without cutting corners.

Afterpath helps North Carolina executors build accurate, compliant estate inventories. Our Pathfinder AI guide explains valuation methods for every asset type, our Task Management system tracks the 90-day inventory deadline and coordinates appraisal scheduling, and our Document Vault stores appraisals, account statements, and valuation documentation in one secure location.

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The Fair Market Value Standard

Every asset in the estate inventory must be reported at its fair market value (FMV) as of the date of death. The IRS defines fair market value as:

“The price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.”

This is not what the deceased paid for the asset. It is not what you hope to sell it for. It is not the sentimental value to the family. It is the price a reasonable buyer would pay a reasonable seller in an arm’s-length transaction on the specific date the person died.

Why the Date of Death Matters

The valuation date is locked to the date of death, not the date you file the inventory, not the date you sell the asset, and not the date you distribute it to beneficiaries. If the deceased died on March 15, you value everything as of March 15 – even if you do not file the inventory until June.

This matters because asset values fluctuate. A stock portfolio worth $200,000 on the date of death may be worth $220,000 three months later when you file the inventory. You report $200,000.

Alternate Valuation Date (Federal Estate Tax Only)

For estates large enough to owe federal estate tax (over $13.61 million in 2024), the executor can elect to value assets as of 6 months after the date of death instead. This “alternate valuation date” is only relevant for federal estate tax purposes and only beneficial if asset values have declined. The vast majority of North Carolina estates will not use this.

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The 90-Day Inventory Deadline

The Requirement

Under NC G.S. 28A-20-1, the personal representative must file an inventory of the estate’s assets within 90 days of the date of qualification (the date the Clerk issued your Letters Testamentary or Letters of Administration).

The inventory is filed on AOC-E-400 (Inventory for Decedent’s Estate) and must include:

• A description of each asset
• The date-of-death fair market value of each asset
• Whether the asset is real property or personal property
• Any liens or encumbrances on the asset

What If You Cannot Meet the Deadline?

If 90 days is not enough time to obtain all valuations (this happens frequently with real estate appraisals, business valuations, or hard-to-value items), you can request an extension from the Clerk. File the request before the deadline expires, explain why additional time is needed, and provide a realistic timeline. Clerks regularly grant extensions for legitimate reasons.

Do not simply miss the deadline without explanation. The Clerk can remove you as personal representative for failing to comply with statutory requirements.

Afterpath’s Task Management system tracks the 90-day deadline from your date of qualification, sends reminders as it approaches, and helps you identify which assets need professional appraisal early enough to get it done on time.

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Valuing Specific Asset Types

Bank Accounts and Cash

Method: Request a statement from each bank showing the account balance as of the date of death.

What to include:

• Checking accounts
• Savings accounts
• Certificates of deposit (CDs) – report the principal plus accrued interest through the date of death
• Money market accounts

Tip: Call the bank and specifically request a “date-of-death balance” statement. Most banks are familiar with this request and can produce it quickly. You will need a certified copy of your Letters Testamentary and a death certificate.

Stocks, Bonds, and Mutual Funds

Method: Determine the closing price on the date of death. If the date of death was a non-trading day (weekend or holiday), use the average of the closing prices on the trading days immediately before and after the date of death.

What to include:

• Individual stocks (report each holding separately with share count and per-share price)
• Bonds (report face value and market value – they may differ)
• Mutual fund shares (report by NAV on the date of death)
• ETFs (report closing price, same as stocks)

Sources for historical pricing:

• Brokerage account statements (request a date-of-death statement from the custodian)
• Financial websites that provide historical stock prices
• The Wall Street Journal historical archive

Tip: If the estate holds securities through a brokerage, the brokerage will often provide a date-of-death valuation report on request. This is the easiest and most defensible approach.

Real Estate

Method: A formal appraisal by a licensed, state-certified appraiser is the gold standard for real estate valuation. The appraiser provides a written report estimating the property’s fair market value as of the date of death.

Alternatives to a formal appraisal:

• Comparative market analysis (CMA): A real estate agent provides an estimate based on recent comparable sales. Less formal than an appraisal but useful for inventory purposes.
• County tax assessment: The county tax value is publicly available but often lags behind actual market value. Use it only as a rough reference, not as your inventory value.
• Online valuation tools: Zillow, Redfin, and similar tools provide automated estimates. These can vary widely in accuracy and are not accepted as formal valuations.

When a formal appraisal is necessary:

• The property is high-value or unusual
• Beneficiaries disagree about the value
• The estate may owe federal estate tax
• You plan to sell the property and need to establish the stepped-up basis for capital gains
• The Clerk requests one

Cost: Residential appraisals in North Carolina typically cost $300-$600. Commercial properties, farms, and unusual properties cost more.

For more on real estate in probate, see our guide on how to create an estate inventory in NC.

Vehicles

Method: Use the NADA (National Automobile Dealers Association) guide or Kelley Blue Book to determine fair market value based on the vehicle’s year, make, model, mileage, and condition as of the date of death.

What to include:

• Cars, trucks, SUVs, and vans
• Motorcycles
• RVs and campers
• Boats and personal watercraft
• Trailers

Tip: Use the “private party” value, not the dealer retail value or trade-in value. Private party value most closely approximates what a willing buyer would pay a willing seller.

For specialty, antique, or classic vehicles, a professional appraisal is recommended.

Life Insurance (Payable to the Estate)

Method: Report the face value (death benefit) of any policy where the estate is the named beneficiary. Do not include policies payable to named individual beneficiaries – those are non-probate assets and do not appear on the estate inventory.

Retirement Accounts (Payable to the Estate)

Method: Report the account balance as of the date of death. Like life insurance, only include retirement accounts where the estate is the named beneficiary. Accounts with named individual beneficiaries are non-probate assets.

For more on retirement accounts after death, see our guide on handling retirement accounts after death in NC.

Business Interests

Method: Business interests are among the most complex assets to value. The method depends on the type of business:

• Sole proprietorship: Value the individual business assets (equipment, inventory, accounts receivable, goodwill) separately
• Partnership interest: The partnership agreement may specify a valuation method; otherwise, a professional valuation is needed
• LLC membership interest: Similar to partnership interests – check the operating agreement first
• Closely held corporation stock: Requires a professional business valuation considering assets, earnings, cash flow, and comparable transactions

When to hire a professional appraiser: For any business interest that is not publicly traded, a professional business valuation from a qualified appraiser (ABV, ASA, or CVA credential) is strongly recommended. Business valuations typically cost $2,000-$15,000+ depending on complexity.

Personal Property and Household Contents

Method: Estimate the fair market value of personal property – what a buyer would pay for each item at a garage sale, estate sale, or secondhand market. This is typically much less than what was originally paid.

Common categories:

• Furniture and home furnishings
• Electronics
• Clothing (usually minimal value)
• Kitchen items and appliances
• Tools and equipment
• Sporting goods
• Books and media

Tip: For general household contents of modest value, a lump-sum estimate is acceptable (e.g., “Household furnishings and personal effects – $3,000”). The Clerk does not expect you to value every fork and towel individually.

Exception: Items of significant individual value (above approximately $500) should be listed and valued separately.

Jewelry, Art, Antiques, and Collectibles

Method: Items of significant value require a professional appraisal from a qualified appraiser specializing in the specific category (gemologist for jewelry, art appraiser for artwork, etc.).

Important considerations:

• Insurance appraisals (replacement value) are not the same as fair market value. Insurance values are typically higher than FMV because they reflect the retail cost to replace the item.
• If the decedent had items appraised for insurance purposes, those appraisals are a useful starting point, but you may need a separate FMV appraisal for estate purposes.
• Collectibles (coins, stamps, sports memorabilia, firearms, wine collections) may require specialized appraisers.

Farm and Agricultural Property

Method: North Carolina has significant agricultural property, and valuing farmland, equipment, livestock, and crops requires attention to several factors:

• Farmland: May qualify for present-use value taxation under NC G.S. 105-277.2, which values the land based on its agricultural use rather than its development potential. However, the estate inventory should reflect fair market value (what it would sell for on the open market), which may be significantly higher than the present-use value.
• Equipment: Use dealer guides, auction records, or professional appraisal for farm equipment
• Livestock: Value based on market prices as of the date of death
• Growing crops: Value based on estimated yield and market prices minus remaining production costs

Digital Assets

Method: Digital assets with monetary value should be included in the inventory:

• Cryptocurrency (Bitcoin, Ethereum, etc.) – value based on the market price at the date of death using a recognized exchange
• Online business accounts with monetary value (PayPal balance, seller accounts, advertising revenue)
• Domain names with established value
• Digital media with resale value (NFTs, though their value can be volatile)

Tip: Cryptocurrency prices fluctuate dramatically. Document the exact date-of-death price using a reputable exchange and screenshot or print the source for your records.

Debts Owed to the Estate

Method: Include any money owed to the deceased by others:

• Promissory notes (report the outstanding principal plus accrued interest)
• Loans to family members or friends (report the outstanding balance; if collection is uncertain, note that)
• Security deposits (rental deposits owed back to the deceased as a tenant)
• Tax refunds due
• Pending lawsuits or legal claims with monetary value

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Documentation Best Practices

Keep Everything

For every valuation you include in the inventory, maintain supporting documentation:

• Bank statements showing date-of-death balances
• Brokerage statements or date-of-death valuation reports
• Real estate appraisal reports
• Vehicle valuation printouts (NADA or KBB)
• Personal property appraisals
• Business valuation reports
• Receipts for appraisal fees (these are deductible estate administration expenses)

Afterpath’s Document Vault provides a secure, organized location to store all valuation documentation, making it easy to reference when you file the inventory and respond to any questions from the Clerk, beneficiaries, or the IRS.

When in Doubt, Get a Professional Appraisal

If you are uncertain about the value of an asset, a professional appraisal protects you. As executor, you have a fiduciary duty to accurately represent the estate’s value. If you overvalue assets, beneficiaries may receive less than they are entitled to (because of higher taxes). If you undervalue assets, you may face questions from the IRS, the Clerk, or dissatisfied beneficiaries.

The cost of an appraisal is a legitimate estate administration expense paid from estate funds.

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Filing the Inventory (AOC-E-400)

What the Form Requires

The AOC-E-400 (Inventory for Decedent’s Estate) asks for:

• The personal representative’s name and file number
• A complete list of all estate assets with descriptions
• The date-of-death fair market value of each asset
• Whether each asset is real property or personal property
• Any encumbrances or liens on the assets
• The total value of the estate

Filing with the Clerk

File the completed AOC-E-400 with the Clerk of Superior Court in the county where probate was opened. Attach supporting documentation as needed (appraisal reports, valuation statements).

The Clerk reviews the inventory for completeness. If the Clerk has questions about any valuation, they may ask for additional documentation or a formal appraisal.

Amended Inventories

If you discover additional assets after filing the initial inventory, or if a valuation changes (for example, an appraisal comes in after you filed an estimated value), file an amended inventory with the Clerk. There is no penalty for filing an amendment – the Clerk expects that estates sometimes uncover assets after the initial filing.

For detailed guidance on the inventory process, see our articles on how to create an estate inventory in NC and the 90-day estate inventory deadline.

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The Connection Between Inventory Value and Taxes

Stepped-Up Basis

The date-of-death value you establish in the inventory becomes the tax basis for capital gains purposes. When beneficiaries later sell inherited assets, their gain or loss is calculated from this date-of-death value, not the decedent’s original purchase price.

This makes accurate valuation critically important. If you undervalue real estate on the inventory and the beneficiary later sells it, the beneficiary will owe more capital gains tax than necessary. If you overvalue it, the beneficiary may be able to claim a capital loss, but the inconsistency with the inventory could trigger IRS scrutiny.

Federal Estate Tax (If Applicable)

For estates exceeding the $13.61 million federal exemption (2024), the inventory values are used to calculate the estate tax liability. Undervaluation can result in penalties; overvaluation results in unnecessary tax. Professional appraisals are essential for taxable estates.

Appraisal Cost Estimates

Understanding the costs can help with planning:

Asset Type	Typical Appraisal Cost in NC
Single-family home	$300-$600
Commercial property	$1,000-$5,000+
Business interest	$2,000-$15,000+
Jewelry collection	$100-$500
Art or antiques	$200-$1,000+ per item
Vehicle (standard)	Free (KBB/NADA)
Vehicle (classic/specialty)	$200-$500

For more details on probate costs, see our guide on how much probate costs in NC.

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Frequently Asked Questions

Can I use the county tax value for real estate?

You can, but it is not recommended as the sole basis for your inventory value. County tax assessments in North Carolina are conducted on a cycle (typically every 4-8 years depending on the county) and often lag behind current market values. They may be significantly lower or higher than actual fair market value. If the property has modest value and there is no dispute, the tax value may be a reasonable reference. For high-value properties, or if accuracy matters for tax basis or distribution purposes, get a formal appraisal.

What if I cannot determine the value of an asset within 90 days?

File the inventory on time with your best reasonable estimate for the asset in question, and note that a professional appraisal is pending. Then file an amended inventory when the appraisal is complete. Alternatively, request an extension from the Clerk before the deadline.

Do I need to value assets that pass outside probate?

The estate inventory (AOC-E-400) only includes probate assets – assets that are titled in the decedent’s name alone or that do not have a designated beneficiary. Non-probate assets (life insurance with a named beneficiary, retirement accounts with a named beneficiary, jointly owned property with right of survivorship, trust assets) are not included on the estate inventory. However, they may need to be valued for the federal estate tax return (Form 706) if the estate exceeds the filing threshold.

Can Afterpath help me with the inventory process?

Absolutely. Afterpath’s Pathfinder AI guide helps you identify which assets need formal appraisals and which can be valued through simpler methods. Our Task Management system tracks the 90-day filing deadline, coordinates appraisal scheduling, and ensures you do not miss any assets. Our Document Vault stores all appraisal reports, account statements, and valuation documentation in one organized, secure location. And our NC Compliance Engine flags the specific requirements the Clerk of Superior Court expects on the AOC-E-400 form.

What if beneficiaries disagree with my valuations?

Beneficiaries have the right to challenge the inventory valuations. If a beneficiary believes you undervalued or overvalued an asset, they can petition the Clerk for a review. The best defense is thorough documentation – professional appraisals, published market data, and written explanations of your valuation methodology. If you anticipate disagreements, getting a professional appraisal upfront is worth the cost.

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Related Resources

• How to Create an Estate Inventory in NC – Step-by-step inventory process
• The 90-Day Estate Inventory Deadline in NC – Understanding the timeline
• Estate Appraisal Costs in NC – What to expect for professional valuations
• How to Start Probate in North Carolina – Beginning the process
• How Much Does Probate Cost in NC? – Total cost breakdown

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Moving Forward

Valuing estate assets is detail-oriented, sometimes tedious work. But it matters. The values you establish in the inventory ripple through the entire estate administration – affecting tax liability, beneficiary distributions, and your obligations as fiduciary. Take it seriously, document everything, and do not hesitate to hire professionals for assets that are difficult to value.

Start with the easy assets (bank accounts, brokerage accounts, vehicles) to build momentum, then tackle the harder ones (real estate, business interests, collectibles). Order appraisals early – they take time, and the 90-day clock does not wait.

You are carrying a significant responsibility, and the administrative demands can feel relentless. Afterpath was built to lighten that load – organizing your inventory process, tracking your deadlines, and ensuring every valuation meets the standard the Clerk and the IRS expect.

Start your free estate assessment →