When a loved one passes away, it can be an extremely difficult time. Not only are you grieving the loss of someone close to you, but you are also navigating the complex legal process involved with settling their estate.
As beneficiaries, you want to ensure the estate is handled properly and that assets are distributed according to your loved one’s wishes. Requesting a formal accounting of the estate is an important step to guarantee transparency during this process.
While executors and trustees are required to provide accountings in many cases, beneficiaries still need to know their rights and when to take action if issues arise. We’ll explain what estate accounting entails when you can request one and why it’s so vital for ensuring fiduciaries handle estates appropriately.
What is Included in an Estate Accounting?
A formal accounting of an estate is an itemized list the executor or trustee prepares to show all transactions involving estate assets. This extremely detailed report must track all money and property flowing into and out of the estate.
Some key components of an estate accounting typically include:
- Inventory of assets (real property, bank accounts, investments, personal property, etc.)
- Income received (interest, dividends, proceeds from sales, etc.)
- Disbursements made (to pay debts, taxes, expenses, beneficiaries, etc.)
- Distributions to beneficiaries
- The current balance of assets still in the estate
Proper accounting follows strict guidelines and formats. It must be accurate and account for every cent entering or leaving the estate. This creates a transparent record that beneficiaries can review.
When You Can Request an Accounting of an Estate
In Florida, executors of estates valued over $75,000 are legally required to provide a formal accounting to beneficiaries. Trustees must also provide annual accountings to trust beneficiaries. Even if an accounting isn’t mandatory, beneficiaries still have a right to request one in many cases.
You may want to request an estate accounting if:
- It’s been over a year since the loved one’s passing, and you haven’t received an update.
- You have concerns about how the executor or trustee is managing assets.
- You need information to file your own taxes related to inheritance.
- You want to ensure assets are being properly distributed.
While you can request an accounting at any time, it’s smart to request one before the estate is closed. This allows beneficiaries to review the accounting and object to any issues while the estate is still open.
The Importance of Transparency When Settling an Estate
Formal accountings are so important because they provide transparency. This allows beneficiaries to oversee the administration of estates or trusts and ensure fiduciaries are acting properly.
Accountings allow beneficiaries to review transactions and confirm executors and trustees are following protocols and acting in good faith. This oversight ensures assets are managed and distributed appropriately.
Additionally, thorough accountings can help identify any improper actions, such as mishandling of funds, conflicts of interest, or self-dealing by fiduciaries. This protects beneficiaries from financial losses.
Having a clear record of how an estate was administered can give beneficiaries peace of mind. Formal accountings help ensure fiduciaries fulfill their duties, allowing everyone to move forward.
How to Request an Accounting from an Estate
If you need to request a formal accounting, it’s smart to consult an estate planning attorney to understand your rights.
Here is an overview of the steps beneficiaries would typically take:
- First, determine if you are entitled to an accounting under Florida law based on your interested party status. Creditors may also request accountings in some cases.
- Provide a written request to the executor or trustee asking for a formal accounting within a reasonable timeframe (30-60 days).
- If the fiduciary refuses or does not provide the accounting, you can petition the probate court to compel an accounting. This court order would require the accounting to be provided.
- If the accounting uncovers issues, beneficiaries can object and potentially recover damages by taking further legal action. But act quickly, as Florida law limits the timeline for challenging estate accountings.
Contact a Florida Probate Lawyer
The legal process following a loved one’s passing can be intensely difficult without guidance from a knowledgeable probate law attorney. Stivers Law has a compassionate team of dedicated Florida probate lawyers with extensive experience handling estate administration, will contests, claims against estates, and all aspects of probate litigation.
Whether you need assistance probating a will, acting as an estate administrator executor, disputing improper will changes, or ensuring fair distribution of assets, reach out to Stivers Law’s probate lawyers for personalized counsel regarding your matter. They can help clients make certain estate proceedings properly follow Florida laws and ethical guidelines so your loved one’s final wishes are legally carried out.
To learn more about retaining Stivers Law’s seasoned team of probate attorneys to oversee your probate case, visit their website at https://miamiwealthplanning.com/.