Understanding the Difference Between Real Property and Personal Property When Valuing an Estate
When someone passes away, one of the first steps in the probate process is to identify and value everything they owned. That may sound simple, but not all property is treated the same way under Missouri and Kansas law. Some assets are considered real property, while others are personal property—and knowing the difference is essential for completing the initial inventory, paying debts, and distributing the estate correctly.
Whether you’re handling an estate in Kansas City, Overland Park, Lee’s Summit, or Liberty, understanding how these two categories work can help you avoid common mistakes and delays in the probate process.
1. Real Property: The Land and What’s Attached to It
Real property refers to land and anything permanently attached to it. Think of it as property that can’t be moved without fundamentally changing it.
Real property includes:
Houses, condominiums, and apartment buildings
Vacant lots or farmland
Driveways, fences, and built-in fixtures
Mineral rights or easements
If your loved one owned a home in Jackson County, Missouri, or a rental property in Johnson County, Kansas, those properties are part of the estate’s real property.
Real property is typically valued by:
Reviewing county tax assessments (a starting point, but not always accurate);
Consulting real estate appraisers or comparative market analyses; and
Considering liens or mortgages that reduce the property’s net value.
In probate, real property is often the single most valuable asset—and it can’t just be sold or transferred casually. Missouri and Kansas both require certain steps and, in many cases, court approval before the personal representative can sell or convey estate real estate.
2. Personal Property: Everything Else
Personal property is everything the decedent owned that isn’t real property. It can be tangible (something you can touch) or intangible (something with value but no physical form).
Tangible personal property includes:
Vehicles, boats, and trailers
Jewelry and collectibles
Furniture, clothing, and household goods
Tools and farm equipment
Intangible personal property includes:
Bank accounts and certificates of deposit
Stocks, bonds, and mutual funds
Life insurance payable to the estate
Business interests or promissory notes
Digital assets (like PayPal or Venmo balances, or even cryptocurrency)
Personal property can usually be sold, transferred, or distributed with less formality than real estate—but it still must be accounted for and valued accurately in the estate inventory.
In Missouri, values are often based on fair market value at the date of death. In Kansas, similar standards apply under Chapter 59 of the Kansas Statutes.
3. Why the Distinction Matters
Understanding what is real property versus personal property matters because different legal rules apply to each.
Ownership and Title
Real property passes by deed and is recorded in county land records.
Personal property passes by possession or title (like a vehicle title, bank account, or certificate).
Transfer Process
Real property often requires court approval to sell, particularly if it’s needed to pay debts or distribute proceeds among heirs.
Personal property can usually be sold or distributed once inventoried, as long as it’s properly reported to the court.
Jurisdiction
Real property is governed by the laws of the state where it is located. If the decedent owned land in both Missouri and Kansas, two probate proceedings (an “ancillary” estate) may be necessary.
Personal property is governed by the law of the decedent’s state of domicile (where they lived at death).
Valuation and Taxes
Real property valuations can trigger questions about capital gains or property taxes if sold after death.
Personal property is usually liquidated more easily, but sentimental disputes are common—especially with family heirlooms.
4. How to Handle Real Property in the Estate
If you’re the personal representative or executor, here’s a step-by-step approach to handling real estate in the estate:
Secure the property. Change locks if necessary and maintain insurance coverage.
Obtain an appraisal. Use a licensed appraiser familiar with the Kansas City metro market.
List it on the inventory. Report the appraised value as of the date of death.
Check for liens or mortgages. These affect the net value and must be paid or satisfied.
Get court approval before selling. Missouri law (RSMo §473.460 et seq.) requires a verified petition to sell, followed by an order authorizing the sale. Kansas has similar requirements under K.S.A. 59-2302.
Document the sale. File a report of sale and attach closing documents to show how proceeds were distributed.
Real property can be distributed directly to heirs instead of sold, but that should be done only after confirming all debts and taxes are paid and the court has authorized distribution.
5. How to Handle Personal Property in the Estate
Personal property is often easier to manage but can be just as sensitive. To handle it correctly:
Make a detailed list. Walk through the home, garage, and storage spaces and create an itemized inventory.
Photograph valuable items. This provides documentation for disputes or missing property claims.
Obtain appraisals for high-value items. Jewelry, antiques, or vehicles may require professional valuations.
Determine what can be sold. Some items—like family photographs or sentimental heirlooms—may be distributed directly to heirs instead.
Keep records. Every sale, distribution, or donation should be documented and included in the estate’s final accounting.
6. Avoiding Common Mistakes
A few common pitfalls can complicate the process:
Skipping the appraisal. Guessing at values can cause problems when the final accounting doesn’t balance.
Confusing joint ownership. Real property titled jointly with rights of survivorship passes outside probate, but personal property titled solely in the decedent’s name must be included.
Selling before approval. In Missouri especially, selling real estate without court authority can void the sale and expose the personal representative to liability.
If you’re uncertain whether an asset is real or personal property—or how to value it—consult with an attorney experienced in Missouri and Kansas probate law before filing your inventory.
7. Final Thoughts
Every estate, whether large or small, requires accurate identification and valuation of property. Understanding the difference between real and personal property isn’t just a technical detail—it determines what paperwork you file, what approvals you need, and how heirs ultimately receive their inheritance.
At The Probate Law Center, we help families across Kansas City, Jackson County, and Johnson County handle both types of property correctly—from securing homes and obtaining appraisals to preparing detailed inventories that satisfy court requirements.
Taking the time to classify and value assets properly at the start can save months of confusion later and help close the estate smoothly and efficiently.
Disclaimer: This post is for general informational purposes only and does not constitute legal advice. Every estate is different. If you have questions about valuing or transferring property during probate in Missouri or Kansas, you should speak with a qualified probate attorney licensed in your jurisdiction.