Suppose you are a beneficiary entitled to a percentage share of an estate, but the executor has neither shared any updates about the estate’s value nor provided a formal accounting. Without transparency, you are left in the dark about whether the estate is being properly handled and the assets that comprise your inheritance.
If the executor or administrator (called the personal representative) isn’t meeting their legal obligation to account, you’re right to be concerned. Estate accountings offer a clear picture of how estate funds are being managed — including what assets are coming in, what expenses are going out and whether any questionable transactions are taking place. Without this vital information, it’s difficult to spot signs of mismanagement or prevent financial losses before they become irreversible.
That said, there’s no need to immediately suspect administrator or executor misconduct is to blame if the personal representative isn’t complying with their duty to account. While personal representatives generally are expected to account at least once a year, the rules aren’t automatically enforced. Unless the representative violates a court order for an accounting, it’s rare for the court to intervene.
In sum, an executor failing to file an accounting at the one-year mark isn’t, in itself, grounds for removal or financial penalties. In some cases, however, a lack of transparency can be a red flag.
Suppose an administrator uses estate funds to loan themselves money without informing heirs or seeking court approval. A proper accounting may expose the executor’s conflict of interest and raise suspicion among the estate beneficiaries. In this instance, the administrator’s failure to account may be deliberate and should be treated as a serious breach of duty.
So how do you tell the difference between an innocent oversight and intentional concealment?
That’s the million-dollar question — and fortunately, there’s a practical answer.
By playing an active role in the estate administration process, beneficiaries can more easily detect when something doesn’t add up. A probate attorney can help ensure an experienced eye is monitoring the situation, as they know what to look for, how to identify hidden irregularities and act quickly if misconduct is suspected — helping to safeguard your inheritance before serious damage is done.
Executor’s Duty to Account — Explained
When a person dies, the assets they leave behind (supposing they don’t have beneficiary designations or belong to their trust) automatically become a part of their estate.
Estates are generally subject to the court-supervised probate process, which is designed to help ensure the decedent’s assets ultimately are distributed as per the instructions in their will or, if no valid will exists, per the laws of intestate succession.
An estate accounting (or probate accounting) is a detailed report that shows how a decedent’s assets were handled during probate. The personal representative must provide this financial breakdown to all interested parties.
Estate accountings not only help the personal representative keep track of estate assets and their value at the time of death but also provide interested parties with a lens into the activities of the estate. This way, if anything seems off, legal action can be taken.
When Are Estate Accounts Required?
Under California Probate Code section 10950, a court can require an estate accounting at any time — either on its own motion or in response to a petition from an interested party, such as a beneficiary, heir or creditor.
The law also makes clear that if an interested party requests an accounting more than one year after the last accounting was filed — or, if no accounting has yet been filed, more than one year after the personal representative was appointed — the court must grant that request.
When the court orders an accounting, it must also set a deadline for when the personal representative must file it. This ensures there is no confusion about when the accounting is due.
Other California Probate Code sections provide additional guidance on a personal representative’s duty to account:
- Section 10951: When the estate is ready to be closed, the executor or administrator must file a final accounting along with a petition for final distribution.
- Section 10952: If a personal representative resigns, is removed or their authority ends for any reason, they must file a final accounting within 60 days, unless the court grants more time.
- Section 10953: If a personal representative dies or becomes incapacitated while serving, their legal representative must file an accounting within 60 days of being appointed, unless the court grants more time.
- Section 10954: A personal representative may be excused from filing an account if either:
- The person entitled to receive the accounting has filed a written waiver or an acknowledgment that their share of the estate has been fully satisfied.
- Adequate provision has been made to fully satisfy the person’s interest. (Note: This exemption typically doesn’t apply to residuary beneficiaries or those whose inheritance could be reduced due to estate expenses, taxes or income accrual.)
Why might a beneficiary waive their right to an accounting? In many cases, they do this to help conserve estate resources and avoid delays. Preparing a formal accounting can be time-consuming and often requires the personal representative to hire a CPA or financial adviser — costs that are paid from the estate. Additionally, the process can slow down the administration and delay distributions to beneficiaries.
That said, it’s important to consult with a probate attorney before signing any accounting waiver. In some situations — especially if you have concerns about how an estate is being managed — waiving your right to an accounting may not be in your best interest.
Can a Beneficiary Ask to See Estate Accounts?
Beneficiaries can ask to see estate accounts. By law, they are entitled to receive a formal accounting upon petition at least once a year for every year the estate remains open.
Technically, beneficiaries are entitled to petition the court to compel an accounting at any time during probate. However, the court may deny the request if it finds that a formal accounting is unnecessary.
In many cases, it’s more efficient to simply request an informal accounting from the executor. If the executor refuses to provide an accounting or fails to provide adequate information, the beneficiary can then consider legal action.
Importantly, beneficiaries should tailor their requests to the specific concerns they have. For example, if a beneficiary is only worried about excessive spending on third-party services — such as cleaners or real estate agents — they might simply request copies of invoices or receipts, rather than a full accounting.
Can Beneficiaries Demand to See Deceased Bank Statements?
Whether a beneficiary can demand to view a deceased person’s bank statements depends on whether the deceased person’s bank account is considered an estate asset.
If the account had a transfer-on-death (TOD) or payable-on-death (POD) beneficiary designation, or was held jointly with rights of survivorship, it typically passes outside of probate directly to the named beneficiary. In that case, the account is not part of the probate estate, and estate beneficiaries generally have no legal right to access its details.
However, if the account had no named beneficiary and was solely in the decedent’s name, it likely will be considered part of the probate estate. In this case, estate beneficiaries are entitled to information about the account — though typically only from the date of death onward. They are not entitled to pre-death bank statements unless there’s a legal dispute involving the account that justifies such a disclosure.
In most instances, if a deceased person’s bank account is an estate asset, the bank will close the account once the personal representative takes the necessary steps to claim it. The executor or administrator will then list the value of the account as of the decedent’s date of death in the inventory submitted early in probate and deposit its funds into a dedicated estate account, which is used to pay taxes, debts and administration expenses. Whatever’s left will eventually be distributed to beneficiaries.
When Can a Residuary Beneficiary See the Estate Accounts?
A residuary beneficiary has the same right to see estate accounts as any other beneficiary. This means they are entitled to receive a formal accounting at least once a year for every year the estate remains open and a final accounting at the close of probate. They can also request information concerning the administration of the estate directly from the executor at any time or petition the court to compel a formal accounting if necessary.
By definition, a residuary beneficiary is someone who receives the remainder of the estate’s assets (known as the residue) after all debts, taxes and expenses have been paid, and specific gifts have been distributed.
While their inheritance may be less defined than that of a specific beneficiary, their legal rights are, in most cases, equal. They are fully entitled to transparency and financial updates regarding the estate’s administration.
Can Heirs Ask to See Estate Accounts?
An heir does have the ability to ask to see estate accounts in an intestate estate, provided they qualify as an heir-at-law (also called a direct heir). An heir-at-law is someone who stands to inherit from a decedent’s estate under California’s intestate succession laws, which apply when there is no valid will or if the will is successfully contested in court.
Because heirs-at-law have a financial interest in the estate, they generally have the same right to request an accounting as named beneficiaries. This includes the right to formally compel an accounting through the court or to informally request one from the personal representative, especially if probate is ongoing and their inheritance may be impacted.
Can Creditors Ask to See Estate Accounts?
Creditors do not have the same rights as beneficiaries or heirs-at-law when it comes to accessing estate accounts. However, because accountings are typically filed with the court, a diligent creditor will usually be able to access the same accountings that are provided to beneficiaries or heirs of an estate, so long as they are monitoring the progress of estate administration.
If a creditor believes that their claim was improperly denied, and they take steps to enforce their claim, they may also be entitled to information concerning estate assets as part of the discovery process when enforcing their claims.
What Does an Executor Need to Disclose to Beneficiaries in Estate Accounts?
An estate accounting should account for all assets entering or leaving an estate during the administration period — no matter how seemingly insignificant the asset is.
For example, suppose an executor purchased office supplies to help them stay organized during the administration. If they used estate funds to purchase these supplies (which they generally are permitted to do), they must disclose the expense in their estate accounting.
Here is a rundown of the information an estate accounting should include, per Probate Code section 1061:
- The property on hand at the beginning of the period covered by the account, which shall be the value of the property initially received by the fiduciary if this is the first account, and shall be the property on hand at the end of the prior account if this is a subsequent account.
- The value of any assets received during the period of the accounting which are not assets on hand as of the commencement of the administration of an estate.
- The amount of any receipts of income or principal, excluding items listed under paragraphs (1) and (2) or receipts from a trade or business.
- Net income from a trade or business.
- Gains on sales.
- The amount of disbursements, excluding disbursements for a trade or business or distributions.
- Loss on sales.
- Net loss from trade or business.
- Distributions to beneficiaries.
- Property on hand at the end of the accounting period, stated at its carry value.
Executors and administrators should strongly consider partnering with an experienced third-party professional, such as a probate attorney or CPA, who understands California’s estate accounting requirements and could either prepare legally compliant accountings on their behalf or review accountings they’ve prepared to ensure they are legally compliant.
Should Beneficiaries Be Provided a List of All Monetary Assets?
Interested parties must be provided with a list of not just monetary assets but non-monetary assets as well — known as the estate inventory and appraisal — at the start of probate. This document must state the market value of each asset as of the decedent’s date of death.
Under Probate Code section 8800, the personal representative is required to file a single document containing the inventory and appraisal within four months of their appointment, unless the court extends the deadline. In some cases, partial inventories may be filed if circumstances warrant doing so, provided that a complete inventory is submitted by the final due date.
Does an Executor Have to Show Beneficiaries Accounting After Sales of Estate Property?
Executors and administrators are not required to provide a full accounting after every sale of estate property. However, all sales must eventually be documented in the formal accounting that’s shared with beneficiaries — either annually or at the close of the estate.
That said, California law does require that interested parties be given advance notice of proposed sales. All personal representatives must serve a Notice of Proposed Action at least 15 days before the sale. If the personal representative has only limited authority, they will also need to obtain court approval before proceeding.
Does an Executor Have to Provide Receipts?
While it isn’t typically required for the executor or administrator to provide receipts and other supporting documentation to interested parties, it may be a good idea for them to do so anyway, as transparency can help build trust.
Additionally, what if a beneficiary were to accuse the executor of stealing from the estate or misusing estate funds? Having detailed receipts could help refute the allegation and prove that the estate is being properly handled.
Does an Executor Have to Show Bank Statements?
Executors and administrators are required to account to beneficiaries and accountings typically detail the same information that would be shown in a bank statement. However, there is no firm requirement in the probate code to provide bank statements to estate beneficiaries. With that said, as with receipts, providing interested parties with bank statements can serve as a good-faith gesture by the personal representative.
How Long Does an Executor Have to Show Bank Statements?
While formal estate accountings are subject to statutory deadlines, there is no specific deadline for when an executor or administrator must provide bank statements. In fact, personal representatives are generally not required to provide bank statements at all unless they are obligated to do so as part of discovery in a litigated dispute or by court order.
Do Beneficiaries Have to Sign Off on Estate Accounts?
While California law does not require beneficiaries and heirs to sign off on estate accounts, it is strongly recommended that personal representatives seek their approval, as it can help streamline the probate process.
For example, if a formal accounting is submitted to the court, obtaining signed waivers or consents from all interested parties may allow the court to approve the accounting without a hearing, saving both time and money. That said, beneficiaries and heirs cannot be forced to sign such documents.
If a beneficiary refuses to sign because they believe an accounting is incomplete or inaccurate, the court may set a hearing to consider their objections and give the personal representative an opportunity to defend their actions.
While not legally required, securing beneficiary sign-off can be an effective way for executors to avoid delays, reduce court involvement and minimize the risk of disputes.
Do Residuary Beneficiaries Have to Approve Estate Accounts?
No, beneficiaries — whether residual or specific — are not required to approve estate accounts, but the executor or administrator may request their approval to expedite the probate process and protect themselves against liability.
Is a Final Accounting of an Estate Required?
Yes, under Probate Code section 10951, a personal representative must file a final accounting along with a petition for final distribution once the estate is in a condition to be closed (i.e., once all outstanding taxes, debts and expenses have been paid, and all estate disputes have been resolved).
The court must approve both the accounting and proposed distribution plan before the personal representative can proceed with making distributions according to the terms of the decedent’s will or intestate succession laws.
It’s important to note that interested parties have the right to review and object to the final accounting if they believe it is inaccurate, incomplete, misleading or otherwise improper. If objections are raised, the court will typically schedule a hearing to examine the objections and determine whether the accounting should be approved, rejected or modified.
How to Request an Accounting of an Estate
How to go about requesting an accounting of an estate depends on whether you are requesting an informal accounting or a formal one. Although we discuss the process for both below, it’s important to identify reasons why you may need to make such a request.
Possible reasons for requesting an estate accounting include:
- You want to know about the estate’s debts and how they are being handled.
- You suspect the executor is mismanaging the estate.
- You suspect the executor is misappropriating estate assets.
- You suspect the executor omitted assets in a previous accounting.
- You suspect the executor is commingling their personal assets with those of the estate.
- You suspect the executor is abusing their authority.
Suppose a decedent died with substantial debt. While you were provided an estate inventory and appraisal, you were not provided any information around how the decedent’s debts were handled. As a result, you have no way of knowing whether your inheritance was impacted by the debts. In this instance, it would be appropriate for you to, at a minimum, request a rundown of the estate’s payments of claims.
Remember, valid creditor claims must always be satisfied before distributions are made to beneficiaries.
How to Request an Informal Accounting of an Estate
Interested parties are always entitled to informally request financial information about an estate from the executor or administrator. These requests should be made in writing to create a paper trail, which can serve as evidence if legal action becomes necessary due to the personal representative’s failure to comply with their fiduciary duties.
In most cases, a formal accounting is not required unless a year has passed since the personal representative was appointed or since the last accounting was filed. That said, a full accounting may become necessary if there are signs of fiduciary misconduct but insufficient documentation to confirm or refute it.
If the personal representative refuses or ignores informal requests, interested parties may need to petition the court to compel the executor or administrator to produce the requested information or file a formal accounting.
How to Request a Formal Accounting of an Estate
While interested parties — provided they have not waived this right — are entitled to receive a formal accounting at least once a year for every year the estate remains open, they also can petition the court for a formal accounting at any time if they have valid cause.
If a beneficiary is forced to petition the court to compel a formal accounting, they may also request reimbursement of attorney’s fees and costs — particularly if there is evidence that the executor acted unreasonably or breached their fiduciary duties.
Because petitions are filed with the court, they must follow a specific legal format and clearly outline the grounds for the request, whether the request is based on the fact the executor failed to timely account per the probate code or based on alleged wrongdoing by the executor.
Given the complexity of these petitions, working with an experienced probate attorney can increase the likelihood of success and help ensure the petition is properly drafted, supported by compelling evidence and strategically presented.
How to Effectively Handle Estate Accounting Disputes
While estate accountings can expose everything from fiduciary misconduct to theft of a decedent’s assets before their death, there are two primary types of disputes that arise surrounding accountings themselves.
What if an Executor Refuses to Provide Accounting?
When an executor or administrator refuses to provide an accounting of an estate, interested parties can file a petition with the court to compel an accounting.
Executors and administrators must keep in mind that if interested parties file a claim to compel an accounting, and that claim is approved, they may be ordered to pay that party’s attorney fees and costs from their own pocket.
If the executor fails to submit an accounting even after the court has ordered them to do so, they could be subject to removal and possibly even a surcharge, as failing to account — especially when ordered to do so by the court — is considered a breach of their fiduciary duty.
What if an Executor Provides an Inaccurate, Incomplete or Misleading Accounting?
Executors and administrators have a duty to provide accurate and complete estate accountings. If accountings are misleading in any way, beneficiaries and heirs are entitled to challenge them in court. When this happens, the court usually will order the personal representative to correct the accountings.
When estate accountings point to a larger issue, such as a possible misappropriation or mismanagement of estate assets, the court may call for the executor to be suspended until the issue can be further investigated or remove them from their position entirely.
While beginners’ mistakes can be overlooked in some situations, they generally cannot be in the field of law. If you have been appointed executor or administrator, it’s important to remember that even an unintentional error can land you in hot water with the court. Personal representatives are expected to understand their role and have the capacity to competently perform its duties.
Estate Accountings FAQs
Are you still confused about what a personal representative’s duty to account entails? Do you have questions about their other duties? Review the frequently asked questions below for further clarity.
If you continue to have questions — or require legal guidance tailored to your specific situation — we recommend reaching out to our probate firm directly.
What if the executor is not communicating with beneficiaries?
When an executor is not communicating with beneficiaries, it is a serious problem — since the executor is a beneficiary’s only window into the activities of an estate.
While an executor is not required to notify beneficiaries of every decision they make, they do have a legal duty to keep beneficiaries reasonably informed about the status of the estate. If they fail to do so, beneficiaries are entitled to petition the court to compel the executor to provide information — or, in more serious cases, to suspend, remove or even surcharge the executor for breaching their fiduciary duties.
If you’re dealing with an executor who won’t respond or share key information, it’s important to consult a knowledgeable probate attorney as soon as possible to protect your rights and explore legal remedies.
Does an executor have to notify beneficiaries of distributions?
Yes, an executor is usually required to give notice to beneficiaries before making any distributions from the estate. Under very limited circumstances, certain estate assets can be distributed without prior court approval using a Notice of Proposed Action.
Advanced court approval and notice to the beneficiaries generally must be in the form of a petition for preliminary distribution (which seeks authority from the court to distribute estate assets to beneficiaries prior to the close of an estate) or a petition for final distribution (which seeks authority to distribute all remaining estate assets to beneficiaries at the close of probate).
Beneficiaries and heirs have the right to object to a proposed action or to any petition seeking authority to distribute estate assets.
How long does an executor have to pay beneficiaries once the court order for final distribution is issued? While there is no specific deadline, the executor must distribute the estate within a reasonable timeframe, which can vary depending on the complexity of the distributions.
Are estate expenses paid by beneficiaries?
No, estate expenses (called probate fees) are paid using estate funds, not beneficiaries’ personal resources. The executor must detail the estate expenses they’ve paid using estate funds in their accountings.
It’s important to note that executor compensation, as well as compensation for their legal counsel, must be approved by the court before being collected.
Does the executor have to file taxes for the deceased?
Yes, the executor is required to file the appropriate tax returns on behalf of the deceased and report any taxes paid in their estate accountings.
Paying taxes — as well as any outstanding debts or financial obligations of the decedent — is a core responsibility of the executor. These liabilities must be resolved before any distributions can be made to beneficiaries.
Still confused about when an executor has to show accounting to beneficiaries?
Estate accountings provide a lens into the executor’s activities, which is why they’re so important. If an executor refuses to provide them, it could indicate the executor is engaged in some form of misconduct.
Keystone’s experienced team of probate attorneys can assist beneficiaries with requesting accountings, filing petitions to compel accountings and inspecting accountings. They, likewise, can assist executors with preparing them.
Contact Keystone today to learn how our probate attorneys can help with your probate issue. We look forward to hearing from you.
