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Accounting Process, Beneficiaries, Bookkeeping, Bookkeeping System, Common Estates, decedent, estate, Estate Administration, Estate Bank Account, Executor, Final Accounting, Inventory of Assets, Probate Court, probate process
The accounting process of an estate is an integral part of the probate process. Although estate law is different in many states, all states allow beneficiaries access to a final accounting. Therefore, an executor of an estate must produce a final accounting to close the estate.
The Accounting Process to Produce the Final Accounting
Producing a final accounting in any estate is a process that begins as soon as the decedent dies. Throughout the estate administration, the executor must keep the Inventory of Assets updated and track the estate bank account activity. As explained in the article Closing an Estate in a Formal Probate Process, the final accounting is part of the closing process that reveals to the beneficiaries how the executor handled the money and property of the estate. Therefore, before an executor can close an estate, the beneficiaries must approve the final accounting.
In the end, the final accounting is the most important document the executor must provide. Fortunately, for common estates, the final accounting is not an elaborate financial statement. Instead, it’s plugging in numbers by category on forms provided by the probate court. The numbers will come from the estate bank account and the final Inventory of Assets making the accounting process more of a bookkeeping process.
The Executor and the Final Accounting
In common estates, an executor must possess organizational skills and basic bookkeeping skills to complete a final accounting. Essentially, balancing the final account is similar to balancing a checking account in a common estate. So, if the executor sets up a bookkeeping system as described in the article Why Accurate Bookkeeping is Crucial to an Estate, then the executor will have no problem producing an accurate final accounting.
Was this article helpful? Do you understand why an executor must complete a final accounting? Would you be able to complete a final accounting as executor? Share your thoughts on the article below in the comment section.
I am writing form Ontario Canada and I believe it is much the same here.
I am in a situation as Executor with an Estate situation that has been dragging on for 12 years. My problem, a problem beneficiary who will not comply. I expect this matter will be going to Trial very soon. There is a great deal of misconduct involving several lawyers. They did their best to break me down. We will see.
TBC.
I am sorry to hear about your dilemma and the fact that it has been going on for so long. It seems you are handling an estate with some wealth since the situation involves several lawyers. The lawyers don’t come cheap. Unfortunately, I have been told, once the lawyers get a hold of an estate, the only winners at the end are the lawyers. I hope this isn’t the case with your estate. Do whatever you can to settle this estate soon, if possible. Hopefully, there will be something left at the end to close this estate.
It seems you are handling an estate with some wealth[…]
No, quite modest. It involves lawyers who have misbehaved. I have very little choice but to carry it through. It’s a great deal of work. Enormous stress. It’s very difficult when a lawyer works in his self interest and in the interest of his “friends”
I hope the Court does the right thing in the final. I have conducted myself accordingly.
Most people would have given up but I would have hated myself had I given up.
I can’t imagine what you are going through after 12 years. Also, it’s not a matter of giving up, it’s a matter of what’s left of the estate worth fighting for. If this misbehavior by the lawyers have drained the estate, you are essentially fighting for nothing and only have stress to show for all your troubles. However, after 12 years, it’s doubtful the probate judge would allow you to walk away. So, you have the right idea in riding it out and hope the court will make things right. On the lighter side, you’ll have one interesting final account to prepare when the day comes.
One suggestion I do have is if there are beneficiaries due to inherit, keep them in the loop.If you keep regular contact and the beneficiaries realize that they could lose their inheritance, they may be willing to get involved to squash this belligerent behavior. Even if the beneficiaries lost interest over time, get them interested again. One of them may even be willing to take up the fight and let you move on with your life. This helped me tremendously when I was dealing with a belligerent beneficiary.