Open one administration record
One file, not a dozen. Keep the court file, appointment papers, will, inventory support, bank and investment statements, appraisals, bills, claims, receipts, sale documents, tax records, beneficiary communications, and distribution evidence in a consistent matter file.
Categories an executor's ledger should reconcile
| Category | Tied to |
|---|---|
| Principal | Inventory support and statements |
| Income | Bank and investment statements |
| Gains and losses | Sale documents and valuations |
| Administrative expenses | Receipts and invoices |
| Debts and claims | Claim correspondence and payments |
| Taxes | Returns and payment records |
| Fiduciary or professional fees | Authorizations and invoices |
| Reserves | The reason the reserve was kept |
| Each distribution | Beneficiary receipts |
Use categories that reconcile
Track principal, income, gains and losses, administrative expenses, debts, taxes, fiduciary or professional fees, reserves, and each distribution, since a beneficiary reviewing the account will eventually ask where a specific dollar went and expect the ledger to answer without guesswork. Reconcile the ledger to estate-account statements and document transfers in or out.
Document judgment calls
Numbers alone may not explain a fiduciary decision.
- Why property was retained, sold, repaired, or abandoned
- How values and sale terms were obtained
- How competing expenses or claims were handled
- Why a reserve was kept
- How personal use or conflicts were avoided
- What authority supported each distribution
What must an executor account for?
Everything that comes in and goes out. The statute says an executor accounts for the estate, including property received, payments, and distributions. The court and beneficiaries may examine the account, and the fiduciary can be examined on oath.
How often is an account due?
Within one year, as the executor's bond promises, and at any other time the court requires. The Judiciary also describes annual reports that let the court monitor an open estate, so plan to report each year until the estate is settled.
Can the final account be waived?
Sometimes. If the estate has been open at least six months and holds no real estate, the account may be waived if the executor files a sworn statement that claims and obligations are satisfied, schedules of assets and proposed distributions, consent from all interested parties, and a tax clearance.
What records do I keep day to day?
A ledger of every deposit and payment, with receipts, statements, and notes on why each was made; keep the estate account separate. The ledger becomes the account, so it should be easy to read.
Does the executor get paid, and how is it recorded?
The statute allows necessary expenses and reasonable fees. If the will sets other pay for the executor, that is full payment unless the executor renounces it in writing or the court orders otherwise. Fees and expenses appear in the account with supporting detail.
What if I made a mistake in the account?
Keep a dated record of the error and its correction. Ask a lawyer which supplemental or amended filing is appropriate, and preserve the documents supporting the change.
Who gets a copy of the account?
Interested persons receive notice of the accounting as the rules require, and the account is filed with the court; a beneficiary who has questions may ask the fiduciary or the court. Sharing information early prevents disputes.
Can a beneficiary object to the account?
Yes. A beneficiary can question items, ask for documents, and object to fees or distributions; the fiduciary should be ready to explain each entry with records. The court decides disputes it cannot resolve informally.
What happens if I do not file the account?
The court can order compliance and, in serious cases, remove the fiduciary or call on the bond; the bond promises that the executor will account within a year. Late filings are a common cause of trouble.
Do estate tax and income tax records belong in the account?
Yes, at least the payments. Keep the returns, notices, and tax clearances with the estate file, since the court may ask about them; a closing checklist should include tax proof.
How long should I keep estate records after closing?
Several years at minimum, and longer for anything tied to real estate or a later claim. Beneficiaries may ask questions long after closing, and creditor or tax questions can surface late.
Should I use accounting software?
A simple spreadsheet works for a small estate. For larger ones, an accountant or software helps. What matters is that each entry ties to a document, not the tool you use.
Sources and further reading