Chapter 26

COL12010615GCA ESTATES AND PROBATE CH.26INVENTORY AND APPRAISEMENT 1CHAPTER 26 INVENTOR Y AND APPRAISEMENT § 2601. Definition of Personal Representative. § 2603. Time for Filing Inventory and Appraisement; Contents. § 2605. Community and Separate Property . § 2607. Testator's Claims Against Executor . § 2609. Testator's Cl aims Against Executor; Bequest to Executor; Nature and Effect. § 2611. Oath. § 2613. Appraisement: Personalty to be Appraised, or its V alue Estimated, by Personal Representative; Court has Discretion to Order Professional Appraisement of Personalty; Real P roperty to be Appraised by Court -Appointed Appraiser; Procedure. § 2615. Competency to Act as Appraiser . § 2617. Form of Inventor y and Appraisement; Signatures; Oaths. § 2619. Compensation of Appraiser . § 2621. Failure to File Inventory; Revocation of Le tters; Liability of Personal Representative. § 2623. Inventory and Appraisement of Newly Discovered Property . § 2625. Penalty for Embezzlement of Decedent's Property . § 2627. Procedure Against Embezzler of Decedent's Property . § 2629. Enforcement of Examin ation of Person Suspected of Embezzlement of Decedent's Property. § 2631.

ezzlement of Decedent's Property . § 2627. Procedure Against Embezzler of Decedent's Property . § 2629. Enforcement of Examin ation of Person Suspected of Embezzlement of Decedent's Property. § 2631. Examination of Person Entrusted With Part of Estate. § 2601. Definition of Personal Representative. For purposes of this Chapter, the term personal representative shall be defined a s it is defined in Section 2501 of this Title. SOURCE: Guam Law Revision Commission. COMMENT : See Comment to § 2501, supra. § 2603. Tim e for Filing Inventory and Appraisement; Contents. Within three (3) months after his appointment, or within such further time as the Superior Court of Guam for reason able cause may allow , the personal representative must file with the Clerk of the Superior Court of Guam an inventory and appraise ment of the estate of the decedent which has come to the personal representat ive's possession or COL12010615GCA ESTATES AND PROBATE CH.26INVENTORY AND APPRAISEMENT 2knowl edge. The inventory must include the home stead, if any , and all the estate of the decedent, real and personal, particularly speci fying all debts, bonds, mortgages, deeds of trust, notes, and other

edge. The inventory must include the home stead, if any , and all the estate of the decedent, real and personal, particularly speci fying all debts, bonds, mortgages, deeds of trust, notes, and other securities for the pay - ment of money belonging to the decedent, with the name of each debtor, the date, the sum originally payable, the endorse ments thereon, if any , with their dates, and a statement of the interest of the decedent in any partnership of which the decedent was a member, to be ap praised as single item. It must include an account of all moneys belonging to the decedent. If the whole estate consists of money in the hands of the personal representa tive, there need not be an appraisement, but an inventory must be made and r eturned as in other cases. The Superior Court of Guam may in its discretion waive the requirements of this Section wher e it appears that none of the heirs, devisees, lega tees, or creditors will be prejudiced by such waiver . SOURCE: Probate Code of Guam ( 1970), § 600. § 2605. Community and Separate Property . The invento ry referred to in Section 2603 of this Title must show , so far as the same can be ascertained by the personal representa

of Guam ( 1970), § 600. § 2605. Community and Separate Property . The invento ry referred to in Section 2603 of this Title must show , so far as the same can be ascertained by the personal representa tive, what portion of the property is community property , and what p ortion is separate property of the decedent. SOURCE: Probate Code of Guam (1970), § 601. § 2607. T estator's Claims Against Executor . The naming of a person as executor does not thereby discharge such person from any just claim which the testator has agains t him, but the claim must be included in the inventory referred to in Section 2603 of this Title, and the executor is liable for the same as for so much money in his hands, when the debt or demand becomes due. SOURCE: Probate Code of Guam (1970), § 602. §2609. T estator's Claims Against Executor; Bequest to Executor; Nature and Effect. The discharge or bequest in a will of any debt or demand of the testator against the executor or any other person is not valid against the credi tors of the decedent, but is a specific bequest of the debt or demand. It must be included in the inventory referred to in Section 2603 of this Title and, if necessary , applied in the

inst the credi tors of the decedent, but is a specific bequest of the debt or demand. It must be included in the inventory referred to in Section 2603 of this Title and, if necessary , applied in the payment of the debts. If not COL12010615GCA ESTATES AND PROBATE CH.26INVENTORY AND APPRAISEMENT 3necessary for that pur pose, it must be paid in the same manner and proportion as other specific legacies. SOURCE: Probate Code of Guam (1970), § 603. COMMENT : In § 603 of the Probate Code of Guam (1970), the phrase A...against the executor of any other person... @(emphasis added) appears in the first sen tence. This was app arently a typographical error, as the corresponding California section reads like § 2609 in every respect. The Commission is of the opinion that the California version is correct, in that it makes considerably more sense in context than the version appeari ng in the Probate Code of Guam (1970). § 261 1. Oath. The personal representative must take and subscribe an oath that the inven tory referred to in Section 2603 of this Title contains a true statement of all of the estate of the decedent which has come to the personal representative's possession or knowledge, and

at the inven tory referred to in Section 2603 of this Title contains a true statement of all of the estate of the decedent which has come to the personal representative's possession or knowledge, and particularly of all money belong ing to the dece dent, and of all just claims of the decedent against the affiant. The oath must be endorsed upon or annexed to the inventory . SOURCE: Probate Code o f Guam (1970), § 604. § 2613. Appraisement: Personalty to be Appraised, or its V alue Estimated, by Personal Representative; Court has Discretion to Order Professional Appraisement of Personal ty; Real Property to be Appraised by Court -Appointed Appraiser; Procedure. (a) (1) The personal representative shall appraise at fair market value moneys, curren cy, cash items, bank accounts and amounts on deposit with any financial institution, and the proceeds of life and accident insurance policies and retireme nt plans payable upon death in lump sum amounts, excepting therefrom such items whose fair market value is, in the personal representative's opinion, an amount different from the ostensible value or specified amount.

upon death in lump sum amounts, excepting therefrom such items whose fair market value is, in the personal representative's opinion, an amount different from the ostensible value or specified amount. As used herein, Afinancial institution @means a bank, trust company , federal savings and loan association, savings institution chartered and supervised as a savings and loan or similar institution under federal law or the laws of the territory of Guam, federal credit union, or credit union cha rtered and supervised under the laws of the territo ry of Guam. (2) The personal representative shall estimate the fair market value of each item excepted from the appraisement COL12010615GCA ESTATES AND PROBATE CH.26INVENTORY AND APPRAISEMENT 4referred to in subsection (a)(1) of this Section, and of each other item of p ersonal property belonging to the estate, and enter his estimate of the value of each such item on the inventory and appraise ment provided by Section 2603 of this Title in lieu of an appraisement thereof, noting thereon with respect to each such item that the value set forth on the inventory and appraisement for each such item is an estimate of such item's fair market value

of an appraisement thereof, noting thereon with respect to each such item that the value set forth on the inventory and appraisement for each such item is an estimate of such item's fair market value and not an appraisement thereof. (3) If the Superior Court of Guam deter mines, either upon the hearing for confirma tion of the sal e of any item, whose fair market value was estimated by the personal representative pursuant to the provisions of subsection (a) of this Section, or upon the settlement of any account of the personal representative, or at any other time prior to the discha rge of the personal representative, that the personal representative's estimate of the fair market value of any item made pursu ant to the provisions of subsection (a)(2) of this Section was materially incorrect, the Superior Court of Guam may order that t he fair market value of such item be appraised by a qualified, disinterested person who shall be appointed as appraiser by the Superior Court of Guam. (b) The appraisement of all assets belonging to the estate, other than those appraised or estimated by the personal representative pursu ant to the provisions of subsection (a) of this Section, shall

(b) The appraisement of all assets belonging to the estate, other than those appraised or estimated by the personal representative pursu ant to the provisions of subsection (a) of this Section, shall be made by one quali fied, disin terested person who shall be appointed as ap praiser by the Superior Court of Guam. The personal representative shall furnish to the appraiser such informa tion concerning the assets appraised or estimated by the personal represen tative, or concerning any other assets of the estate, as the appraiser shall require, in sub stance and form as prescribed by the appraiser . (c) Neit her the personal representative nor the personal representative's attorney shall be entitled to receive com pensa tion for extraordi nary services by reason of appraising or esti mating the fair market value of any asset pursuant to the provisions of this Section. SOURCE: California Probate Code, § 605 (as amended); Guam Law Revision Commission. COMMENT : Under current California law , as well as under prior Guam law , the assets of the estate are appraised by some one other than the personal repre sentative COL12010615GCA ESTATES AND PROBATE CH.26INVENTORY AND APPRAISEMENT

a law , as well as under prior Guam law , the assets of the estate are appraised by some one other than the personal repre sentative COL12010615GCA ESTATES AND PROBATE CH.26INVENTORY AND APPRAISEMENT 5(except for those assets enumerated in subsection (a)(1) of § 2613.) The Commission is of the opinion that such professional appraisement is unnec essary , in most cases, with respect to items of person al property belonging to the estate; in most cases, the personal representative's estimate of the value of such items should be sufficient. The Commission has thus added subsec tion (a)(2), requiring the personal repre sentative to estimate the fair market value of estate person al property (and of those items specifically exempted from ap praise ment by subsection (a)(1),) and to note on the inventory and appraisement that the value set forth for such items is an estimate and not an appraisement. Recog nizing that such estimates may not always be correct, howe ver, the Commission has also incorporat ed into subsection (a)(2) the provi sion that the court has full discretion to require any such item to be appraised by a professional appraiser (as is always done with respect to real

lso incorporat ed into subsection (a)(2) the provi sion that the court has full discretion to require any such item to be appraised by a professional appraiser (as is always done with respect to real property under subsection (b) o f § 2613) if the court deter mines that the estimate made by the personal repre sentative is materially incorrect. The Commis - sion is of the opinion that this scheme should be fair to all parties concerned, and should substan tially decrease the estate's o utlay for appraiser's fees while still ensuring that all assets of the estate will be appraised at a value very close to (if not alway s exactly) fair market value. § 2615. Competency to Act as Appraiser . No Cler k of the Superior Court of Guam or Deputy Cl erk of the Superior Court of Guam, or partner or employee of a judge of the Superior Court of Guam, or person related to a judge of the Supe rior Court of Guam or to his spouse within the third degree, or who is married to a relative of a judge of the Supe rior Court of Guam within the third degr ee, shall be competent to act as appraiser . SOURCE: California Probate Code, § 606 (as amended). § 2617.

who is married to a relative of a judge of the Supe rior Court of Guam within the third degr ee, shall be competent to act as appraiser . SOURCE: California Probate Code, § 606 (as amended). § 2617. Form ofInventory and Appraisement; Signa tures; Oaths. The inventory and appraise ment shall be prepared in s uch for m as to set down each item separately with the fair market value thereof at the time of the decedent's death in dollars and cents in figures opposite the respective items. The appraisement shall be signed by the personal representative as to those a ssets appraised or estimated by him, and by the appraiser as to those assets appraised by him. The personal representative and the appraiser shall each subscribe his oath or state - ment under penalty of perjury that all items thereof which he has appraised or estimated have been truly , honestly , and impartially appraised, or the fair market value thereof estimat ed, to the best of his ability . SOURCE: First sentence: California Probate Code, § 600 (as amend ed); Guam Law Revision Commission. Balance: Califo rnia Probate Code, § 608 (as amended); Guam Law Revision Commission.COL12010615GCA ESTATES AND PROBATE

nce: California Probate Code, § 600 (as amend ed); Guam Law Revision Commission. Balance: Califo rnia Probate Code, § 608 (as amended); Guam Law Revision Commission.COL12010615GCA ESTATES AND PROBATE CH.26INVENTORY AND APPRAISEMENT 6COMMENT : The Commission has altered the language of the California statutes to cause § 2617 to comport with § 2613, supra. See Comment to § 2613, supra. § 2619. Compensation of Appraiser . The appraiser is entitled to receive, from the estate he appraises, his actual and necessary expenses and reasonable compensation for his services, to be allowed by the Superior Court of Guam; and the appraiser must file, with the inventory and ap praisem ent, a verified account of his services and disburse ments. SOURCE: Probate Code of Guam (1970), § 609. § 2621. Failure to File Inventory; Revocation of Letters; Liability of Personal Representative. If the personal repre sentative neglects or refus es tofile the inventory and appraise ment within the time prescribed, the Superior Court of Guam, upon notice, may revoke the personal representative's letters, and the personal repre sentative shall be liable for any injury to the estate or any person interes ted

bed, the Superior Court of Guam, upon notice, may revoke the personal representative's letters, and the personal repre sentative shall be liable for any injury to the estate or any person interes ted therein, arising from such failure. Any da mages awarded pursu ant to this Section shall be a charge upon the bond of the personal representative, if there be a bond. If the bond is insufficient, or if there is no bond and the security provided by the p ersonal representative for the faithful perfor mance of his trust is insufficient, then the da mages shall be charge against the personal assets of the personal representative. SOURCE: California Probate Code, § 610 (as amended). § 2623. Inventory and Appr aisement of Newly Discov ered Property . Whenever property not included in the inventory referred to in Section 2603 of this Title comes to the possession or knowledge of the personal representative, the personal representative must cause an inventory and a ppraisement thereof to be made and filed in the manner prescribed in this Chapter for mak ing and filing the original inventory and ap praisement.

ersonal representative must cause an inventory and a ppraisement thereof to be made and filed in the manner prescribed in this Chapter for mak ing and filing the original inventory and ap praisement. Such new inventory and appraisement shall be filed within two (2) months after the discovery , and the making and filing thereof ma y be enforced, after notice, by at tachment or removal from office. SOURCE: California Probate Code, § 611 (as amended). § 2625. Penalty for Em bezzlement of Dece dent's Proper ty.COL12010615GCA ESTATES AND PROBATE CH.26INVENTORY AND APPRAISEMENT 7If any person embezzles, conceals, smuggles, or fraudu lently disposes of any property of a decedent, he is charge able therewith, and liable to an action by the person al representative of the estate for double the value of the property , to be recov ered for the benefit of the estate. SOURCE: Probate Code o f Guam (1970), § 612. § 2627. Procedure Against Embezzler of Decedent's Property . Upon complaint made under oath by a personal representative or other person interested in the estate of a decedent, that any person is suspected of having embez zled, conceal ed, smuggled, or fraudulently disposed of any

nder oath by a personal representative or other person interested in the estate of a decedent, that any person is suspected of having embez zled, conceal ed, smuggled, or fraudulently disposed of any property of the decedent, or has in his possession or has knowledge of any deed, conveyance, bond, contract, or other writing, which contains evidence of or tends to disclose the right, title, interest or claim of the decedent to any real or personal property , or any claim or dema nd, or any lost will, the Superior Court of Guam may cite the suspected person to appear before the Superior Court of Guam, and may examine the suspected person on oath upon the matter of such complaint. If the suspected person is found innocent, his neces sary expenses must be allowed him out of the estate. SOURCE: Probate Code of Guam (1970), § 613. § 2629. Enforcement of Examination of Person Suspect ed of Embezzlement of Decedent's Proper ty. If the person cited pursuant to the provi sions of Section 2627 of this Title r efuses to appear and submit to an examination, or to answer such interrogatories as may be put to him, touching the matters of the complaint made pursuant to the prov isions of Section

f this Title r efuses to appear and submit to an examination, or to answer such interrogatories as may be put to him, touching the matters of the complaint made pursuant to the prov isions of Section 2627 of this Title, the Superior Court of Guam, by warrant for that purpose, may commit such person to the jail, there to remain until he submits to the order of the Superior Court of Guam or is discharged according to law . If, upon such examination, it appears that he has embezzled, concealed, smuggled, or fraudulently disposed of any property of the decedent, or that he has in his possession or knowledge any of the papers or docu ments mentioned in Section 2627 of this Title, the Superi or Court of Guam may make an order requiring him to disclose his knowledge thereof to the personal representa tive, and may commit him to the jail, there to remain until the order is complied with or he is discharged according to law . All such interrog atories and answers must be in writing, signed by the party examined, and filed in the Superior Court of Guam. In addition to the COL12010615GCA ESTATES AND PROBATE CH.26INVENTORY AND APPRAISEMENT 8examination of the party , witnesses may be produced

he party examined, and filed in the Superior Court of Guam. In addition to the COL12010615GCA ESTATES AND PROBATE CH.26INVENTORY AND APPRAISEMENT 8examination of the party , witnesses may be produced and examined on either side. SOURCE: Probate Code of Guam (1970), § 614. § 2631. Examination of Person Entrusted With Part of Estate. The Superior Court of Guam, upon the complaint, on oath, of any personal representative, may cite any person who has been entrusted with any part of the estate of the decedent to appear before the S uperior Court of Guam and require such person to render a full account, on oath, of any moneys, accounts, or other property or papers belonging to the estate, which have come such person's possession, and of such person's proceedings thereon; and if the pe rson so cited refuses to appear and render such account, the Superior Court of Guam may proceed against him as provided in Section 2629 of this Title. SOURCE: Probate Code of Guam (1970), § 615. ----------