Inventory Requirements for Guardians of the Estate of a Minor
THE GUARDIANSHIP INVENTORY
Please submit your inventory in a legible form acceptable for recordation. Generally, if typed, the font size should be no less than 10 point.
THE INVENTORY FORM
All assets of the minor under your control are reported to the Commissioner of Accounts on Form CC-1672 within four (4) months from the date of your qualification as guardian of the property of a minor. This is a mandatory requirement and cannot be waived. At the time of qualification in the Clerk’s office as guardian of the property of a minor you were given the appropriate forms to be filed during the course of your duties as guardian. Form CC-1672 (INST) is an excellent set of instructions for the completion of the inventory.
This inventory includes all personal and real property under your control and supervision which belongs to the minor. It also reports all payments that you receive from an agency of the United States government as well as the minor’s rights to periodic payments from any other source. The forms are self explanatory.
The values assigned by you to the various assets listed on the inventory are the values as of the date of your qualification not the date the inventory is prepared.
If there are stocks owned by the minor, you should obtain a statement of the stock values as of the date of qualification from the 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. The total number of shares of each stock shall be listed. Do not state just the name of the brokerage account and the total value. If you do so you must attach a list itemizing each stock, mutual fund or bond held in the brokerage account. Your inventory will be returned to you if this information is not included.
Do not list the full account number for any account shown on the inventory. List only the last four (4) digits of each account. Identity theft protection is strongly suggested. Do not disclose the full account number on any document to be filed with the Court. These documents, once approved by the Commissioner of Accounts, are recorded and published on the Henrico Circuit Court public records and are available to anyone who searches the public records. While the Commissioner of Account’s office attempts to correct accountings listing full account numbers, we do not guarantee that those account numbers in all circumstances are corrected. It is your obligation to properly list all accounts by the last four (4) digits.
Real estate should be listed at the Henrico County tax assessed value as of the date of your appointment as guardian. You may obtain this information from the Henrico County Real Estate Appraisal office or you may call 804-755-1055 and obtain the information by phone without the necessity making a special trip to the tax assessor’s office.
Do not change the value of real estate or stocks and bonds during the course of the filing of accounts after the inventory is filed. Once a value is established on stocks, bonds and real estate, they retain those values throughout the entire accounting process until such time that they are sold, traded or otherwise disposed of, at which time an adjustment is made for a gain or a loss based on the disposition of the asset.
The inventory value is the fair market value. Do not deduct for liens, mortgages or other sums owed on real estate or any other asset listed on the inventory. The debt against an item is not considered on the inventory listing.
Completion of the Inventory (Form CC-1672)
Part 1 of the inventory includes all personal property assets under your supervision and control owned by the minor. This includes automobiles, tangible personal property, intangible assets such as bank accounts, certificates of deposit, stocks, bonds, inheritances, or any other asset in which the minor has an interest. If the minor owns a one-half interest a boat, for example, that one-half interest should be shown in Part 1 and the value would be one-half of the fair market value of the boat. If the minor is to receive a $25,000.00 inheritance or personal injury settlement, that value should be shown on Part 1. The total of all personal property, tangible and intangible, owned by the minor should be listed in Part 1 and should be totaled at the bottom of page 1 of the inventory.
Part 2 on page 2 of the inventory list all of the minor’s ownership interests in real estate for which you have power of sale. Almost all guardianships provide for the guardian to have power of sale, even though it may be restricted and subject to approval by the Commissioner of Accounts. Unless the order states specifically that you do not have power of sale of the real estate, you have that power and you should list all real estate interests of the minor in Part 2. The property should be designated by address and locality and the percentage of ownership in the property should be designated. Often the property is left by will or intestacy to a minor and adults or to several minors resulting in a percentage of ownership. If the minor owns a one-half interest in a property assessed for tax purposes at $100,000.00, the value of the minor’s interest is $50,000.00. No deductions are made for any mortgage on the property. The total value of the minor’s interest in all real estate over which you have power of sale is listed in Part 2.
The minor’s other real estate in Virginia is real estate for which you have no power of sale. If the Court’s order specifically states that you do not have the power of sale over real estate, the specific real estate will be listed in Part 3. If you do not have power of sale you will list the minor’s interest in real estate in Part 3 of the inventory just as you would have listed it in Part 2 if you were to have the power of sale.
Part 4 is the listing of the minor’s non-Virginia real estate. This is any real estate interest owned by the minor outside the Commonwealth of Virginia. Valuation of the property should be based on the tax assessed value from the locality in which the real estate outside the State of Virginia is located.
Part 5 is a listing of ownership in real or personal property which will pass to another person at the minor’s death other than by a will or intestacy. If the minor has in interest in a trust which has beneficiaries designated following the minor’s death, the minor’s interest in the trust will be shown in Part 5 because it passes by the terms of the trust after the minor’s death. The minor’s percentage interest in the trust would be designated and the fair market value assigned.
This section includes the minor’s rights to periodic payments from an agency of the United States government such as social security, supplemental social security or Department of Veteran’s Affairs benefits for which you are designated in writing as “representative payee” and required to account to the federal agency. 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 are the representative payee. These values should be shown for a twelve (12) month period. For example, if the minor receives social security of $200.00 per month, and you have been appointed as “representative payee” and can provide the letter so designating you, you should list social security of $200.00 per month times 12 months for a total value in the right-hand column of $2,400.00. The amount of the payments received will be reported on the account summary page, but not included in any of the totals on your account. You must present the letter designating you as “representative payee” with the inventory. If you are not the designated “representative payee”, you will report payments from the above referenced agencies in Part 7 and will account for them.
If you comingle these funds with other guardianship assets, you must account for the use of the funds received.
Include all periodic payments other than those that belong in Part 6. This will include periodic payments from retirement plan benefits left to the minor, a disability program, an annuity, a trust fund, etc. Although payments such as the Office of Personnel Management (OPM) and the Defense Finance and Accounting Service (DFAS) are from federal agency sources, they are retirement pay based on employment, and neither OPM nor DFAS require a guardian to file a report with them regarding the use of those funds. Therefore, these payments must be included in Part 7 of the Inventory and be fully accounted for in your account.
Show the value of these monthly payments on an annualized basis. For example: “Monthly Annuity of $1,500 …………………………… Value $18,000.”
Please note that it is the guardian’s obligation to be accurate and complete in the filing of the inventory and the signing of the certificate on page 3 of the inventory is a certificate of correctness. Failure to accurately list and disclose all assets of the minor may result in personal liability to you as the guardian, a denial of commission or further Court proceedings.
If you have questions about the completion of the inventory, please consult a qualified guardianship attorney, a CPA or you may call the Commissioner’s office for general instructions on the completion of the form after reading the instructions.
Please note the Commissioner‘s office does not give legal advice and we do not complete forms for you, but we will give you general guidance in the proper manner for the completion of the inventory.
Due Date for Filing the Inventory
Filing of the inventory shall be made within four (4) months from the date of qualification with the office of the Henrico County Commissioner of Accounts. The inventory should be submitted in duplicate with a check payable to the Commissioner of Accounts to satisfy the Commissioner’s fees and fees of the Clerk of Henrico Circuit Court for the recordation of the inventory once it has been approved by the Commissioner’s office.
The fees of the Commissioner are as stated in the Henrico County Circuit Court Order establishing the fees of the Commissioner of Accounts (Commissioner’s Fee Schedule). The current Commissioner of Account’s fee for the inventory for a minor is as follows:
Inventory for Minor Any Amount $75.00 plus clerk’s fee of $18.00
Supplemental, restated or amended inventory $55.00 plus clerk’s fee of $18.00
Clerk’s fees are payable with each inventory filed. Those fees are as follows based the number of pages of the inventory:
1 – 10 pages………………….$18.00
11 – 30 pages…………………$32.00
31 or more pages…………….$52.00
ALL CHECKS SHALL BE MADE PAYABLE TO THE COMMISSIONER OF ACCOUNTS FOR THE COMMISSIONER’S FEES AND THE CLERK OF COURT FEES.
The Commissioner of Accounts will forward the check to the Clerk for the appropriate fees payable for the filing of the inventory.