What records are required to distribute assets under a will

I recently had a client, Milt, come to me in a complete panic. His mother had passed away with a seemingly straightforward will, but her handwritten codicil – changing a key beneficiary – was nowhere to be found. After weeks of searching, it was clear it was lost. Because it wasn’t properly executed and witnessed, the original will prevailed, and Milt’s sister received an inheritance he believed was intended for his son. The emotional and financial cost of that lost codicil was immense.

What Documents Do I Need to Start the Distribution Process?

Distributing assets under a will isn’t as simple as just handing things over. There’s a legally required process, and meticulous record-keeping is paramount. As an Estate Planning Attorney and CPA with over 35 years of experience, I’ve seen firsthand how a lack of organization can significantly delay and complicate things for your beneficiaries. Here’s a breakdown of the essential records you’ll need to gather, broken down by asset type.

What About the Original Will and Any Codicils?

This seems obvious, but it’s the foundational document. You’ll need the original signed will and all valid codicils (amendments). As Milt’s situation illustrates, a lost or improperly executed codicil can create huge problems. Keep these documents in a safe, known location and inform your executor where they are. Beyond the physical document, you’ll need certified copies for filing with the court. Also, be mindful of digital wills and those stored with third-party platforms; access to those platforms is crucial – and often requires specific RUFADAA language in your estate planning documents to ensure access to digital assets like cryptocurrency or online accounts. Without it, service providers like Coinbase and Google can legally deny your executor access.

What Records Are Needed for Real Estate and Property?

Real estate distribution is complex, especially in California. You’ll need the deed to the property, recent property tax assessments, and any mortgage statements. If the estate is pursuing an AB 2016 “Petition for Succession” (Probate Code § 13151) – for a primary residence valued up to $750,000 – you’ll need to file this with the court and receive a judge’s order. For deaths on or after April 1, 2025, this is the primary method for smaller estates. However, remember that to qualify, the decedent’s other non-real estate assets must typically remain below the separate $208,850 Small Estate limit. Be aware, the Small Estate Affidavit is strictly for real property under $69,625, like timeshares or vacant land, and isn’t applicable to larger residences. Also, under Prop 19, heirs can only keep a parent’s low property tax base if they move into the home as their primary residence within one year and the home’s value is within specific limits.

How Do I Handle Bank Accounts, Cash, and Investments?

For each bank account, you’ll need the most recent statements showing balances and account ownership. For investments (stocks, bonds, mutual funds), gather statements detailing holdings and cost basis. Determining the correct cost basis is where my CPA background is invaluable – it impacts capital gains taxes for your beneficiaries. If combined ‘probate assets’ (excluding the AB 2016 residence) exceed $208,850 (the threshold effective April 1, 2025), they are subject to formal probate; a Will alone does not allow you to bypass this limit.

What About Life Insurance Policies and Retirement Accounts?

Collect copies of the life insurance policies and beneficiary designations. Beneficiary designations supersede what’s written in the will, so verifying these is critical. Similarly, gather statements for retirement accounts (IRAs, 401(k)s) and their corresponding beneficiary forms. These assets often pass directly to beneficiaries outside of probate, but proper documentation is still essential.

What if the Decedent Owned a Business (LLC)?

Distributing ownership in a business, especially an LLC, requires extra diligence. You’ll need the LLC operating agreement, articles of organization, and any buy-sell agreements. As of March 2025, domestic U.S. LLCs are exempt from mandatory BOI reporting under the Corporate Transparency Act; however, executors managing foreign-registered entities must still file updates within 30 days to avoid fines of $500/day. You’ll also need documentation of the value of the business interest, which often requires a formal business valuation.

What if the Estate is Subject to Federal Estate Tax?

The OBBBA permanently increased the Federal Estate Tax Exemption to $15 million per person effective Jan 1, 2026, but for larger estates, you’ll need detailed records of all assets, including real estate appraisals, business valuations, and documentation of debts and liabilities. An experienced CPA can help navigate the complex tax rules and ensure accurate reporting.

Proper record-keeping isn’t just about complying with the law; it’s about honoring your loved one’s wishes and minimizing stress for your family during a difficult time. A little preparation now can save a great deal of heartache – and expense – later.

How do probate courts in California evaluate intent when a will is challenged?

In California, a last will and testament operates within a probate system that emphasizes intent, clarity, and procedural compliance. When properly drafted, a will does more than distribute property—it creates legally enforceable instructions that guide courts, fiduciaries, and beneficiaries through administration with fewer disputes and less uncertainty.

• Ambiguity: Avoid vague terms that trigger interpretation fights.
• Incapacity: verify legal capacity at signing.
• Errors: check for codicils often.

When a will is drafted with California probate review in mind, it becomes a stabilizing roadmap rather than a source of conflict. Clear intent, proper authority, and compliant execution protect both families and estates.

Resources for Asset Management & Transfer

• Property Tax Reassessment: California State Board of Equalization (Prop 19)
  This page details the “Base Year Value Transfer” rules. It explains that heirs can only avoid a property tax reassessment if the inherited home becomes their primary residence and the Homeowners’ Exemption is filed within one year of the date of death.
• Real Estate Probate (AB 2016): California Probate Code § 13151 (Petition for Succession)
  The specific statute for the AB 2016 process. It outlines the requirements for using a court-approved “Petition” (not an affidavit) to transfer a primary residence worth $750,000 or less (gross value) for deaths occurring after April 1, 2025.
• Small Estate Affidavit: California Probate Code § 13100 (Personal Property)
  Access the statutory language for the “Small Estate Affidavit.” This procedure is strictly for Personal Property (cash, stocks, vehicles) and is limited to estates with a total value of $208,850 or less (effective April 1, 2025).
• Federal Estate Tax Exemption: IRS Estate Tax Guidelines
  The authoritative federal resource for estate valuation. It reflects the 2026 exemption increase to $15 million per person, which is critical for high-net-worth asset planning and determining if an IRS Form 706 is required.
• Unclaimed Assets: California State Controller – Unclaimed Property
  The primary portal for executors and heirs to search for “lost” assets—such as forgotten bank accounts, uncashed dividends, and insurance benefits—that have been remitted to the State of California for safekeeping.
• Business/LLC Compliance: FinCEN – Beneficial Ownership Information (BOI)
  The official portal for corporate transparency reporting. Most domestic and foreign entities (LLCs, Corps) must file a report. Executors must verify compliance, as failure to update control information within 30 days of death can result in federal civil penalties.