Inventory of Assets in Inheritances: When and How to Prepare It

Upon the death of an individual, the succession process begins, involving the distribution of assets, rights, and liabilities among the heirs. One of the most important—and sometimes least understood—steps is the preparation of an inventory of inherited assets, a document that ensures transparency, legal certainty, and facilitates the division of the estate.

In this article, we explain what it is, when it is mandatory, and how to properly prepare it.

 

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What is an Inheritance Asset Inventory?

An inheritance asset inventory is a legal document that records, in a detailed and valued manner, all the deceased’s assets and liabilities. It defines the true estate of the deceased (caudal relicto) and serves as a basis for distributing the inheritance among heirs and legatees.

Main purposes

• Determine the hereditary estate: Identify all the deceased’s assets and rights.

• Protect the heirs: Allows acceptance of the inheritance benefit of inventory, limiting liability for debts to the value of the inherited assets.

• Protect creditors and legatees: Ensures debts and legacies are satisfied before distributing the remaining assets.

• Serve as a basis for partition: Facilitates the division and allocation of assets.

Contents of the inventory

• Assets: Real estate, vehicles, bank accounts, shares, jewelry, artwork, loans receivable, etc.

• Liabilities: Debts and encumbrances such as mortgages, personal loans, and tax obligations.

Formalization

The inventory can be prepared judicially (in case of disputes) or notarially (when there is agreement among heirs or to accept the inheritance benefit of inventory).

When is an Asset Inventory Mandatory?

Although not always mandatory, certain legal situations require it:

Acceptance of Inheritance Benefit of Inventory

Allows the heir to respond for debts only up to the limit of the inherited estate, avoiding exposure of personal assets.

• A complete and faithful inventory must be prepared (Article 1010 of the Civil Code).

• Omission or fraud can result in the loss of this benefit (Article 1024 of the Civil Code).

Judicial Inheritance Division Proceedings

When heirs do not reach an agreement and resort to the court, the inventory becomes a necessary phase of the procedure.

• Helps resolve disputes over inclusion or exclusion of assets.

• Supervised by a judicial estate accountant (contador-partidor).

Legal Obligation for Certain Succession Roles

Specific roles, especially under regional civil law, require an inventory:

• Fiduciaries and trusted heirs (Catalonia).

• Commissioners (Basque Country).

• Fiduciary administrators (Aragon).

Note: Outside these cases, even if not legally mandatory, it is always advisable to prepare an inventory to ensure transparency and avoid future conflicts.

Steps to Prepare an Inheritance Asset Inventory

1. Gather documentation: Property deeds and registry notes, bank certificates, insurance policies, pension plans, shares, invoices, appraisals, and loan or debt receipts.

2. Asset valuation: Assets should be valued at their real or market value as of the date of death. This is essential for distribution and tax calculations.

3. Drafting and signing the inventory: Identify each asset (location, value, ownership) and obtain signatures of all heirs or the authorizing notary.

4. Subsequent modifications: If new assets or debts are discovered, a supplemental inventory may be prepared with the same formalities as the initial inventory.

Risks of an Inaccurate or Fraudulent Inventory

• Loss of the benefit of inventory and personal liability for debts.

• Conflicts among heirs due to lack of knowledge of the actual estate.

• Tax errors and sanctions due to incorrect inheritance tax calculations.

• Inability to complete the estate division.

How We Can Help at Adlanter

Whether required by law or as a prudent measure, properly preparing an inheritance asset inventory protects heirs, creditors, and ensures the division is carried out without surprises.

If you need assistance preparing an inheritance asset inventory or managing any aspect of an estate, our team of commercial law experts can provide professional and personalized guidance.