What is an inventory? Find out everything about the procedure! 

The process of creating an inventory is usually accompanied by many doubts, especially for those who are not used to the legal sector.

And, contrary to what many believe, the purpose of the inventory is not just to describe the deceased’s inheritance or the assets of a company.

In today’s material we will explain in detail the types of inventory that exist and other clarifications related to the topic.

So, if you want to stay on top of the subject and find out how to prepare a safe and valid inventory, keep reading!

What is an inventory?

When we talk about probate, the first thing that comes to mind is that classic movie scene in which a lawyer appears to carry out the probate and distribute the inheritance of a deceased family member.

Therefore, it is natural for us to think that the purpose of the inventory is to distribute the assets, but for this purpose we already have the so-called will. The inventory has many other functions besides this.

An inventory is a process in which all information regarding a person’s assets is gathered.

The purpose of this procedure is precisely to collect information in order to determine amounts available for inheritance, debts and pending issues left by the deceased.

Therefore, this procedure serves to provide “accounts”, to distribute the assets left based on the rightful heirs and payment of pending issues.

In many cases, when carrying out the inventory, it is noted that the assets left are not even enough to pay the debts, so there will be no inheritance left. Therefore, the aim is simply to collect the data and allocate the values ​​and goods to pay outstanding debts.

++What is Succession Planning and How to Do It? – valuedyou.com

What is the difference between probate and will?

At this point you already have a good idea of ​​what an inventory is, but one question still remains: after all, what is the difference between an inventory and a will?

As we saw previously, the procedure serves to collect information regarding the assets left by the deceased.

A will is a document that certifies the deceased’s decision regarding the division of his or her assets.

So, in practice it works like this: when there is a will, all available inheritance will be distributed based on the will. When it does not exist, the inventory will serve to divide the inheritance considering the legal heirs.

It is worth mentioning that the will does not cancel the inventory. Therefore, if the inventory contains debts that exceed the available assets, the inheritance will not be distributed in accordance with the wishes of the deceased declared during his lifetime.

In any case, what we should know is that they are different processes and documents, and each one has its own role in determining and distributing inheritance.

How to make an inventory?

Regarding drawing up an inventory, the first thing we should know is that, unlike a will, this cannot be done while alive.

Therefore, the creation of the inventory will take place after the death, and may be requested by a family member or by the court, if a direct family member does not do so.

That being said, to open it is necessary to have the official death certificate in hand, and it is recommended to have the help of a lawyer.

As it is a judicial procedure, the simplest way to do it is by hiring a professional specialized in the area. 

To do this, gather the documents of the deceased and their assets and hand them over to the professional, who will be responsible for preparing and clarifying the inventory later. 

Business inventory: find out how it works

When we talk about inventory, we must remember that the personal is not the only one that exists, as there is also a business.

And, when it comes to business inventory, this is very different from the most common model, even having a different purpose.

The business inventory serves to determine that company’s assets, including capital, assets and important data.

The main purpose of this procedure is to ensure that all the company’s assets are duly registered, so that, in the event of separation of partners, it is easier to distribute each one’s rightful shares.

Therefore, for this type, there is no need to wait for separation from society, as it also has a preventive nature.

To prepare this type of document, it is worth having professional help, and it is crucial that all company data and assets are recorded during the procedure.

Especially if you are new to the subject, preparing any type of inventory should be done with the help of a specialized professional. This way you ensure that everything is properly clarified and can be directed correctly.

++Understanding Financial Market Terms: A Guide for Beginners – valuedyou.com