Inventory by Conservators
As previously stated, guardians of the person of the incapacitated adult have no obligation to report to the Commissioner of Accounts.
However, all conservators have the statutory obligation, and obligation by Court order, to report to the Commissioner of Accounts for Henrico County. This is an obligation to report on all financial transactions which you, as the conservator, have conducted on behalf of the incapacitated adult during the period of your appointment as conservator. This is an obligation to account, penny for penny, for all beginning assets, income and all disbursements made for the benefit of the incapacitated adult and all assets held by you at the end of any given accounting period.
Unless specifically waived by the Court in the appointment order, all conservators have an obligation in Henrico to file an inventory.
If the incapacitated’s only asset and income is social security or another federal entitlement which are all payable to a formally designated representative payee, and that designation can be demonstrated to the Commissioner, the inventory only will be filed, and accountings may be suspended by the Commissioner until such time as the conservator receives assets in excess of $25,000.00, at which time accounting obligations shall resume.
Please use a font size of not less than 10 point when submitting your inventory or account. If the inventory or account are not legible or acceptable for recordation, they will be returned to be restated.
All assets of the incapacitated adult under your control are reported to the Commissioner of Accounts on Form CC-1671, within four (4) months from the date of your qualification as conservator under the Order of Appointment. This is a mandatory requirement and cannot be waived. At the time of qualification in the Clerk’s office of Henrico Circuit Court you were given the appropriate forms to be filed. Accompanying Form CC-1671 was Form CC-1671(INST) which gives an excellent explanation for the completion of a proper inventory for the estate of an incapacitated. This inventory must include all personal property under your control and supervision, all real estate, all legal ownership interests held by the incapacitated person and any rights to periodic payments of money. The values that are assigned by you to the assets of the incapacitated are the values as of the date of qualification, not the date the inventory is prepared. If there are stocks in the estate of the incapacitated, you should obtain a statement of the stock values from the stock broker or from a recognized internet source and use those values for the stock. Do not round off. You should use exact amounts. Stocks should be listed individually and not as a brokerage account. Do not put the name of the brokerage account and a total value. If the brokerage account consists of stocks you shall list each stock including the number of shares and the date of death value per share with a listing of the value for each stock held. This would include bonds, money market accounts held in brokerage, CD’s or any other items held by the brokerage account.
Do not list the full account number for any account shown on the inventory. List only the last four digits (for each account). Identity theft protection strongly suggests that you not disclose on your inventory the full account number. This document goes to public record and is available to anyone who searches the public records. While the office of the Commissioner of Accounts attempts to correct these account listings as they are reviewed, we do not guarantee that those account numbers in all circumstances are corrected. It is your obligation to properly list all accounts.
Real estate should be listed at the tax assessed value in the year of appointment. You may obtain this assessment from the Henrico County Real Estate Assessor’s office, the Henrico County website or you may call 804-755-7380 and obtain the information by phone without the necessity of making a special trip to the tax assessor’s office.
Do not change the value of assets, including real estate or stocks and bonds, during the course of the filing of accounts after the inventory is filed. Once a value is established for an asset it retains that value throughout the accounting until such time as it is sold, traded or otherwise disposed of. At that time, a gain or loss entry on the next accounting can be made for the difference between the original values stated on the inventory and the actual value received upon disposition.
The inventory value of each asset is its fair market value. You do not deduct any lien, mortgage or other debts that exists against an asset in listing it on the inventory. The debt owed on the item is not considered on the inventory listing.
Completion of the Inventory
Part 1 of the inventory includes all personal assets under your supervision and control owned by the incapacitated adult withoput any survivorship designation on the account. This includes automobiles, tangible personal property, intangible assets such as bank accounts, certificates of deposit, stocks, bonds, life insurance without a named beneficiary or payable to the incapacitated’s estate, or any other non-real estate asset in which the incapacitated person has an interest that does not pass by survivorship under the account. If the incapacitated adult owns a one-half interest in a boat, for example, that one-half interest should be shown in Part 1 and the value should be one-half of the fair market value of the boat. If the boat is titled to the incapacitated and another, with the right of survivorship, it is listed in Part 5. The total of all of Part 1 assets is listed at the bottom of the inventory page.
Part 2 lists all of the incapacitated person’s real estate over which you have a power of sale. If the Court has denied you the power of sale over real estate, or restricted that right by requiring the prior approval of the Commissioner of Accounts, the incapacitated person’s real estate should not be listed in Part 2, but should be listed in Part 3. If the incapacitated person’s real estate is titled by deed in the incapacitated person’s name with another person, and that deed provides that at the death of the incapacitated person, the property passes by survivorship to the other named person (persons), it should not be listed in Part 2 but should be listed in Part 5 of the inventory. Part 2 of the inventory is reserved only for real estate solely in the name of the incapacitated person or a joint ownership interest the incapacitated person has in real estate with no right of survivorship.
If you are denied the power to sell real estate in the Order of Appointment, or the power of sale granted to you is a restricted power of sale, the incapacitated’s interest in real estate should be listed in Part 3, at its tax assessed value. If the order requires the approval of the Commissioner of Accounts prior to closing of any real estate sale, the real estate is listed in Part 3, as your power of sale is restricted.
Non-Virginia real estate owned by the incapacitated without survivorship is listed in Part 4, at its tax assessed value.
Where the incapacitated adult owns real estate with another with the right of survivorship which passes title at the incapacitated person’s death by the language in the deed (and not by his will or intestate succession) the property is listed in Part 5.
Jointly titled bank or brokerage accounts would also be listed in Part 5 if they pass by survivorship or transfer on death designation. The value of the incapacitated’s interest in the joint with survivorship bank or brokerage accounts is the percentage contribution made to the account by the incapacitated; except the whole value if jointly held by husband and wife. Note that a bank account jointly titled as a Power of Attorney or Attorney in Fact is not a survivorship account and should be listed in Part 1 if no POD designation has been stated on the account card signed by the incapacitated.
Part 5 should report life insurance policies, IRAs, 401Ks or other retirement accounts which have a named beneficiary payable at death.
Also all jointly titled personal property should be listed, such as vehicles, boats or other tangible property for which there is a document of title or contractual designation of joint ownership with survivorship. Note however, that if survivorship is not stated in the document of title, the incapacitated’s percentage of ownership would be listed in Part 1. (e. g. an automobile titled as tenants in common [not joint tenants with the right of survivorship]. For joint automobile titling, see the DMV regulations stated under “Estates, Inventory”.
List in part 6 any interest to which the incapacitated is entitled from a living trust created by the incapacitated or from a trust created by a third party. The incapacitated may have created a living trust before his incapacity under which he retained some or all interest. The value of that trust interest should be reported in part 6. Likewise, if the incapacitated is entitled to an interest (other than periodic payments) in a trust established by another, that value is reported in part 6 as a lump sum. If the incapacitated’s parent passed away and the incapacitated is entitled to a $50,000.00 distribution from a trust as a result, the entitlement is reported in part 6. If the incapacitated is entitled to periodic payments from a trust, those payments are reported in part 8 on an annualized basis. For example, if the incapacitated receives $500.00 monthly from his parents’ trust, the annualized sum of $6,000.00 is reported in part 8.
Part 7 is for the listing of periodic payments from any agency of the United States government for which you or another have been specifically designated as “representative payee” and for the use of which the representative payee must account to the federal agency. (Payments for which a designated representative is not required to report to a federal agency are reportable in Part 8.) As a general rule, only Social Security payments, Supplemental Security Income (SSI) benefits, Department of Veterans Affairs benefits and Black Lung benefits will be listed in this section if you have been appointed as “representative Payee” by the federal agency. These payments are stated on an annual basis. The monthly payment received, for example, from Social Security, would be listed at a monthly value times twelve (12) for a total annual value.
This section includes only payments received as a “representative payee” from an agency of the United States government. If the payments are made in the name of the incapacitated alone or deposited directly to a bank account without a written designation as “representative payee”, the monthly payments belong in part 8.
If you comingle Part 7. benefits with other guardianship assets you must account for them.
NOTE: You will need to submit a copy of your written designation as representative payee with the inventory if you list social security or disability payments in part 7.
Part 8 includes periodic payments from any other source such as retirement plan payments, disability plans, annuity payments or periodic trust fund payments.Note: Payments from the Federal Office of Personnel Management (OPM) and the Defense Finance and Accounting Service (DFAS) must be reported in part 8 because the recipient does not have to account to those organizations for the use of the funds, so the conservator must. The source of the payment is specifically identified along with the frequency of payments , the amount of payments and a total annual value is reported.
If you do not have designation as the “representative payee” of social security, disability or other benefits paid from an agency of the federal government, or do not have to account to a federal agency for the use of the federal agency benefits, report those monthly payments in part 8 not part 7, and account for the use of the benefits.
Please note that it is the conservator’s obligation to be accurate and complete in the filing of the inventory and the certificate signed by the fiduciary on page 3 is a certification that you have complied with your responsibilities of reporting all assets of the incapacitated person. Failure to accurately list and disclose all assets of the incapacitated person may result in personal liability to the fiduciary, a denial of commission or other Court proceedings.
If you have questions about the completion of the inventory, please consult with a qualified estate planning or elder law attorney, a CPA or you may call the Commissioner’s office for general instructions on the completion of the form.
Please note the Commissioner’s office does not prepare the inventory for you, but will give you general guidance in the completion of the inventory. The Commissioner’s office audits completed inventories.
Filing of the inventory in duplicate is made within four (4) months from the date of qualification with the office of the Commissioner of Accounts. Along with the inventory, a check shall be submitted to satisfy the Commissioner’s fees and the fees of the Clerk of Court for the recordation of the inventory once approved by the Commissioner’s office. The fees of the Commissioner are as stated in the Henrico County Circuit Court Order regarding fees of the Commissioner of Accounts as follows:
$0 – $ 50,000 $135.00
50,001 – 200,000 $200.00
200,001 – 500,000 $275.00
Above – 500,000 $350.00
The fee for an amended, restated or supplemental inventory are $110.00 Commissioners fee plus $18.00 clerk’s fee.
Clerk’s fees are paid to the Commissioner of Accounts in addition to the Commissioner’s fee as follows:
1 – 10 pages…………………………….$18.00
11 – 30 pages…………………………. $32.00
31 or more pages…………………….$52.00
One check shall be payable to the Commissioner of Accounts for both fees and submitted with the inventory.