Estate inventory
When your marriage ends or you lose a close family member, a lot of things need to be arranged. One of the biggest and sometimes most complicated things is the liquidation-division of:
- either the marital community;
- or your loved one's estate.
In both cases, you go through the same procedure. In this regard, it may be useful to have an estate inventory drawn up. We discuss exactly what this is and its main aspects in this Wanted Fact.
The liquidation distribution
If you can still get around the table together as a couple or if you have a close relationship as heirs, you can often organise the liquidation-division at the notary's office so you may find it unnecessary to consult a lawyer. In many cases, however, it may still be useful to contact a lawyer. After all, there are many issues associated with this procedure that people are not aware of.
When the liquidation-division process starts, one of the first steps is the preparation of the estate inventory. This is the detailed description of the estate, in particular all assets, liabilities and properties with an estimate. In doing so, the parties involved often also make a lot of declarations regarding certain assets. However, the estate description is not limited to what is present in the family home, for example, but also involves being able to compile the fictional mass so that any gifts must also be mentioned.
The estate inventory is a custodial measure to secure the assets, and in which the assets are merely described and estimated. The notary will note and formalise all this in a notarial deed.
With an estate description, it is clear to everyone exactly which assets need to be liquidated and distributed.
Transparency
An estate inventory provides an overview of all assets and liabilities to be divided. It ensures that all parties involved are aware of what is in the marital community or estate so that transparency is provided. This is especially important in preventing disputes between heirs or former spouses.
Those involved have an active duty of notification. This means that they provide information to the notary themselves and spontaneously. One does not do well to withhold certain info just ‘because nobody asked’.
Preventing (further) points of conflict
When no clear and well-defined inventory has been drawn up, conflicts about the size of the matrimonial community of property or estate can arise. A detailed estate inventory serves as a reference point to avoid such disputes and helps resolve any conflicts that do arise.
Legal obligation
Article 1214 of the Judicial Code stipulates that an inventory of the estate will be made unless all parties expressly waive it and notify the notary of the exact assets to be divided. The parties involved can also choose to make an estate description only on statements.
Tax reasons
An accurate estate inventory is also crucial for tax purposes. It helps determine the value of assets and liabilities at the time of death or divorce, which may affect inheritance tax or taxes due.
The estate inventory concludes with the parties involved taking an oath. In this way, the parties involved indicate that the information they have provided is correct. If it turns out afterwards that a party involved did not provide certain information or did not provide it correctly, or that certain goods were withheld, the party involved is guilty of receiving stolen goods and this can lead to perjury. The person concerned may then face civil and criminal penalties. The civil sanction of perjury is deprivation of all rights to the healed goods.
Clearly, you would be well served to have an estate inventory drawn up in a liquidation distribution.
Note that when preparing the estate inventory, certain assets are often valued very low. After all, the notary has to check what the proceeds of the property would be in the event of a sale. This obviously does not take into account the emotional value. For this reason, it can often be interesting to receive certain goods in kind if you cherish them.
Contact Wanted Law!
Are you facing a liquidation-division of a matrimonial community or estate or are you considering initiating proceedings? Feel free to contact one of our Wanted Lawyers so that we can advise and assist you personally.