Annual and Final accountings
One of the most important responsibilities of a personal representative is to file accountings with the Court. Accountings show exactly how the estate’s money has been handled — and they must be accurate, detailed, and balanced to the penny.
Here’s what you need to know about annual accountings and the final accounting before you can close the estate.
What Is an Annual Accounting?
In most supervised probate estates, the personal representative must file an Annual Accounting each year the estate remains open.
The Annual Accounting must:
List all money that came into the estate
List all expenses that were paid out
Show the balance of estate funds remaining
Include detailed supporting records (such as bank statements)
Every deposit, every payment, and every transaction must be recorded.
The Court and the heirs have the right to review how the estate is being managed.
When Is the Annual Accounting Due?
Typically, the Annual Accounting must be filed:
On or before the anniversary of the date the personal representative was appointed
Or earlier, if the Court sets a specific deadline
If you need extra time, you must file a request for an extension — otherwise, missing the deadline can lead to fines or removal.
What Information Must the Annual Accounting Include?
A complete Annual Accounting usually contains:
Beginning balance (as shown on last approved Inventory or accounting)
Itemized list of income (interest, dividends, refunds, rent, etc.)
Itemized list of expenses (attorney fees, taxes, maintenance costs, etc.)
Receipts and disbursements summarized clearly
Ending balance of the estate account(s)
You may also need to:
Provide updated information about real property, investments, or business interests
Disclose any changes in asset values
What Is a Final Accounting?
The Final Accounting is filed when the estate is ready to be closed.
It wraps up everything and shows the Court:
All assets and income collected during the probate process
All payments made for debts, expenses, and taxes
The proposed distribution to heirs or beneficiaries
After the Court approves the Final Accounting, and the remaining assets are distributed, the personal representative can request to be formally discharged from their duties.
Key Requirements for Final Accountings
The Final Accounting must balance exactly — every dollar must be accounted for.
You must show zero balances in the estate’s accounts once distributions are made.
You must obtain and file receipts from heirs acknowledging that they received their distributions.
Sometimes, you may need to file a Final Settlement Petition asking the Court to approve the accounting and authorize closing the estate.
👉 Think of the Final Accounting as the “closing statement” for the entire estate.
⚠️ Common Mistakes to Avoid
Missing or incorrect bank statements
Forgetting to report small sources of income (like refunds or dividends)
Failing to explain discrepancies between beginning and ending balances
Spending estate money without proper documentation
Not keeping copies of every check, receipt, and deposit
Even small mistakes can delay estate closure — or cause the Court to reject your accounting and require amendments.
Accurate accountings are the backbone of a successful probate case. They protect the estate, keep heirs informed, and protect you as the personal representative from personal liability. Good record keeping from the very beginning will make both your annual and final accountings easier to complete — and will get the estate closed faster.
Legal Disclaimer: This information is provided for general educational purposes only and does not constitute legal advice. Please consult an attorney for advice specific to your situation.