Washington Estate Inventory and Appraisement: Deadline, Filing, and Penalties

In Washington, the estate inventory and appraisement is a sworn list of every probate asset the decedent owned, valued at fair market value as of the date of death, that the personal representative must prepare within three months of being appointed by the court.¹ Done well, it sets up clean debt payment, correct distributions, and accurate estate tax filings. Done poorly, it costs the estate money and can cost the representative the role.

The Three-Month Deadline and Who Prepares It

Only the personal representative (the executor named in the will or the administrator appointed when there is no will) prepares the inventory. From the date of appointment, the clock runs three months. The representative must compile a verified inventory and appraisement of all property that passes under the will or by intestacy and that has come to the representative’s possession or knowledge.¹ The court can grant more time for a complex estate, but three months is the default.

The document is sworn under oath. It must state every encumbrance, lien, or secured charge against each item, and the representative then calculates the fair net value by subtracting those charges. Washington law groups the inventory into specific categories: real property (listed by legal description), stocks and bonds, mortgages and notes owed to the estate, bank accounts and cash, furniture and household goods, and all other personal property.¹ For a partnership interest, the inventory shows the decedent’s proportionate share rather than the partnership’s full balance sheet.

Community Property Changes What You List

Washington is a community property state, and this trips up people who assume probate only touches the decedent’s half. The entire community estate is subject to probate administration for purposes including payment of community debts, the homestead award, and family support allowances. One half is then confirmed to the surviving spouse, and the decedent’s half is available for distribution under the will or intestacy.²

So the inventory shows community property in full, with the surviving spouse’s confirmed half identified. Misclassifying an asset as separate when it is community (or the reverse) distorts the distribution, can shortchange the surviving spouse, and invites challenges from other heirs. When the character of an asset is unclear, resolve it before the inventory is sworn.

What Belongs on the Inventory

The statute’s categories cover a wide range of modern assets. In practice, the list includes:

Homes, land, rental property, and commercial buildings, identified by legal description, with mortgage balances subtracted to show net value.
Bank accounts, certificates of deposit, and cash on hand.
Stocks, bonds, mutual funds, and brokerage accounts owned solely or as community property.
Mortgages, promissory notes, and loans owed to the decedent.
Vehicles, furniture, household goods, jewelry, artwork, and collectibles.
The decedent’s share of partnerships, LLCs, or closely held corporations.
Digital assets such as cryptocurrency, NFTs, domain names, and monetized online accounts. The IRS treats digital assets as property, so they carry the same valuation obligations as any other asset.³

Nonprobate Assets Stay Off

Washington defines nonprobate assets broadly to include property that transfers at death through a written instrument other than the will. Common examples: joint accounts with right of survivorship, transfer-on-death securities, payable-on-death bank accounts, transfer-on-death deeds, revocable trusts that become irrevocable at death, community property agreements, and IRAs with named beneficiaries.⁴ Life insurance proceeds payable to a named beneficiary are also excluded.

Don’t put these on the probate inventory. A frequent error is listing a retirement account that has a named beneficiary or a jointly titled bank account. Including them inflates the probate value and confuses the distribution. The representative still tracks nonprobate assets separately because they matter for the overall estate tax picture.

How to Value Each Asset

Every item is valued at fair market value as of the date of death. That means the price a willing buyer would pay a willing seller when neither is under pressure. The representative can value simple items directly and should bring in professionals for anything subjective or high-value.

Real estate calls for a licensed appraiser who weighs comparable sales, condition, and location. A typical used vehicle can start with a figure from Kelley Blue Book, but an antique or specialty car warrants a professional appraisal.⁵ Artwork, antiques, and collectibles can be evaluated through auction houses or appraisal organizations; paying an appraiser by the hour rather than as a percentage of the item’s value keeps the cost reasonable.

Publicly traded stocks and bonds are generally valued at their closing price on the date of death. Closely held business interests are harder: valuing a private company usually requires a professional who looks at revenue, earnings, market position, and comparable sales. Retirement accounts carry embedded tax liability that matters for later planning, but for inventory purposes the balance at death is the starting point.

Cryptocurrency presents its own problem because prices move sharply within a single day. The IRS requires valuation in U.S. dollars at fair market value, so document the date-of-death price from a reputable exchange or index and keep screenshots or records supporting the figure.³

Filing the Inventory and Who Can Demand a Copy

Here is a point that surprises people: Washington does not require the inventory to be filed with the court. The statute says it “may, but need not be, filed in the probate cause.”¹ Instead, specific people can request a copy in writing, and the representative must deliver it within ten days of that request. Those entitled to a copy are heirs, beneficiaries under the will, unpaid creditors who have filed a claim, nonprobate-asset beneficiaries from whom contribution is sought, and the Washington Department of Revenue.

The result keeps private financial details out of the public court file while giving stakeholders a route to transparency. The duty to prepare the inventory and provide copies on request applies the same way whether the estate is administered with standard court supervision or under nonintervention powers.

Supplemental Inventories for Assets You Find Later

Assets discovered after the initial inventory have their own deadline: a supplemental inventory within thirty days of discovery, unless the court grants more time. It must be sworn under oath like the original, and copies go to everyone who received the initial inventory on request.⁶

A substantial late-discovered asset can shift what each heir receives, reopen creditor questions, or push the estate across the Washington estate tax threshold. Notify interested parties as soon as you know, rather than waiting out the thirty days, when a new asset meaningfully changes the picture.

Why the Values Matter for Estate Tax

Inventory values feed directly into both the Washington and federal estate tax calculations. Washington is one of the few states with its own estate tax, and its exclusion is much lower than the federal exemption, so estates that owe nothing to the IRS can still owe the state.

Washington’s estate tax applies to estates exceeding an applicable exclusion amount of $3,076,000 for deaths in 2026,⁷ a threshold that adjusts annually based on the Seattle-area consumer price index.⁸ Above the exclusion, rates start at 10 percent and reach 35 percent on taxable amounts over $9 million.⁹ Undervalue the inventory and the estate faces underpayment and penalties; overvalue it and the estate pays more than it owes.

The federal estate tax exemption for 2026 is $15 million per individual, with a top rate of 40 percent above that. When a federal estate tax return (Form 706) is required, the representative also files Form 8971 with the IRS reporting the final estate tax value of each asset distributed to beneficiaries, and each beneficiary receives a Schedule A showing the value of what they inherited.¹⁰ Those reported values become the beneficiary’s tax basis when the property is sold.

Penalties for Getting It Wrong

The personal representative owes a fiduciary duty to the estate and its beneficiaries. An incomplete or misleading inventory can lead to removal, personal liability for losses the estate suffers, or both. The court can also require a new or additional bond at any time if it has concerns about how assets are being handled.¹¹

Deliberate concealment or misappropriation becomes criminal. Theft of property exceeding $5,000 is theft in the first degree, a Class B felony under Washington law,¹² carrying up to ten years in prison and a fine of up to $20,000.¹³ Theft of property valued between $750 and $5,000 is theft in the second degree, a Class C felony.¹⁴

Honest mistakes carry smaller but real consequences. An unintentional omission can trigger court-ordered revisions, delay distributions, and generate legal fees that come out of the estate. For estates near the Washington estate tax threshold, inaccurate values can draw scrutiny from the Department of Revenue, which is specifically entitled to request the inventory and appraisement. The best protection is a careful first inventory: proper classification of community versus separate property, qualified appraisals for anything subjective, nonprobate assets kept off the list, and prompt supplemental filings when something new turns up.

1
Washington State Legislature. Washington Code 11.44.015 – Inventory and Appraisement
2
Washington State Legislature. Washington Code 11.02.070 – Community Property Disposition
3
Internal Revenue Service. Digital Assets
4
Washington State Legislature. Washington Code 11.02.005 – Definitions and Use of Terms
5
Justia. Valuing Assets in an Estate and Legal Considerations
6
Washington State Legislature. Washington Code 11.44.025 – Additional Inventory and Appraisement
7
Washington Department of Revenue. Estate Tax Tables
8
Washington State Legislature. Washington Code 83.100.020 – Definitions
9
Washington State Legislature. Washington Code 83.100.040 – Estate Tax Imposed
10
Internal Revenue Service. About Form 8971 – Information Regarding Beneficiaries Acquiring Property from a Decedent
11
Washington State Legislature. Washington Code 11.28.185 – Bond or Other Security of Personal Representative
12
Washington State Legislature. Washington Code 9A.56.030 – Theft in the First Degree
13
Washington State Legislature. Washington Code 9A.20.021 – Maximum Sentences for Crimes
14
Washington State Legislature. Washington Code 9A.56.040 – Theft in the Second Degree