Comprehensive Guide to Estate Account Inclusions

Estate accounts play a crucial role in managing and distributing the assets of a deceased individual. To ensure accuracy and compliance with legal requirements, it is essential to include specific elements in these accounts. This guide provides a detailed overview of the items that should be included in estate accounts, based on the analysis of relevant documents and established best practices.

Required Components of Estate Accounts

1. Beginning Assets

• Total value of assets listed in Parts 1 and 3 of the estate inventory (including any amended or supplemental inventories) for the first account.
• Total Assets on Hand (at carrying value) from the prior account for subsequent accounts.

2. Receipts

• Itemized list of all income received during the accounting period, including:
  • Interest
  • Dividends
  • Rental income
  • Refunds
  • Any other income sources

3. Gains on Asset Sales

• Net proceeds from asset sales less carrying value of the asset sold.
• Original broker’s statement or signed settlement sheet as verification.

4. Adjustments

• Any additional assets discovered that were not reported previously, with permission from the Commissioner of Accounts.
• Corrections to items reported on the inventory or prior account, such as incorrect asset values or share counts.

5. Disbursements for Debts and Expenses

• Itemized list of all disbursements made from estate funds, grouped by payee.
• Proper vouchers, invoices, or receipts from each payee must be provided in support of each disbursement.

6. Losses on Asset Sales

• Carrying value of assets sold less total sales proceeds.
• Copy of broker’s statement or signed settlement sheet as verification.

7. Distributions to Beneficiaries

• Itemized list of all distributions made to beneficiaries, including:
  • Beneficiary’s name
  • Description of asset delivered
  • Value of asset

8. Assets on Hand

• Itemized list of each asset remaining on hand at the end of the accounting period, at its carrying value.
• Market value of the asset in parentheses within the asset description or attached separately.
• Verification of asset existence, such as bank statements, broker’s statements, or original stock certificates.

Additional Considerations

• In certain cases, receipts and disbursements may need to be characterized as principal or income, such as when a trust is created or a federal estate tax return is required.
• The use of an Account Summary form is strongly encouraged for easy summarization of account information.
• Copies of the account must be sent to all entitled persons who have made a written request.

By adhering to the guidelines outlined in this guide, estate accounts can accurately and comprehensively reflect the financial transactions and assets of the estate. Proper documentation and organization of account elements ensure transparency, accountability, and compliance with legal requirements.