The assets of the estate are referred to as the principal or corpus of the estate. In identifying the principal, the fiduciary must identify, or inventory, those assets that were the legal property of the decedent at the time of death. Therefore, the assets will include accrued items such as interest and rents. Items frequently comprising the estate principal include the following:
1. Cash on hand and in bank accounts.
2. Investments such as stocks, bonds, mutual funds, retirement accounts, money market funds, and survivorship annuities.
3. Accrued interest and declared dividends on the above investments as of the decedent’s death.
4. Capital interests in businesses, such as closely held corporations, partnerships, and/or sole proprietorships.
5. Life insurance proceeds that are receivable by the estate, receivable by another for the benefit of the estate, or the result of the decedent having an ownership interest in the insurance policy. Therefore, if the decedent or the estate has an “incident of ownership,” the proceeds are included in the estate.
6. Investments in real estate, including accrued rents at the date of the decedent’s death.
7. Intangible assets, such as patents and royalties, including related accrued income at the date of the decedent’s death.
8. Loans or notes receivable, including accrued interest at the date of the decedent’s death.
9. Unpaid wages and other forms of earned income accruing to the decedent at the date of the decedent’s death.
10. Personal valuables, including furniture, fixtures, jewelry, vehicles, boats, and collectible items such as coins, stamps, and artwork.
It is important to note that the preceding inventory of the principal is not reduced by the liabilities of the decedent. These obligations are recognized when they are paid or satisfied through the distribution of estate principal.