Circuit Court Probate Division Rules Table of Contents
The following standards shall be applicable to all interim
and final accountings of Administrators, trustees, guardians and conservators,
required or permitted to be filed with the Court.
A. Accounts shall be stated in a
manner that is understandable by Persons who are not familiar with practices and
terminology peculiar to the administration of estates, trusts, guardianships and
conservatorships.
1. All
accounts shall be rendered on a cash basis, except in extraordinary
circumstances upon specific written order of the Court.
2. All
accounts shall be rendered for a specified period, with an indicated opening and
closing date. Such period shall be for not more than twelve months ending on the
last day of a calendar month, unless otherwise ordered by the Court. A first
accounting shall begin on the date of appointment and end on the last day of the
calendar month next preceding the anniversary month of appointment, unless a
shorter period is specified in such accounting, or unless otherwise modified
upon appropriate Motion to the Court. Accounts subsequent to the first account
shall be for periods of twelve (12) months. An accounting other than a first
account may be for a shorter period if it is appropriate because a specified
event (such as death of a beneficiary or ward; closing the estate; or date
specified in the applicable Court order or will) occurs, resulting in a change
in the responsibilities or duties of the Fiduciary.
3. For
Administrators, accounts shall list all receipts by source (other than the
principal value of real estate, unless the real estate has been actually sold by
the Fiduciary) and all disbursements by payee. Gains and losses on disposition
of property shall be netted and reported with receipts.
4. For
trustees, accounts shall list separately all receipts and disbursements of
principal by source and by payee; and all receipts and disbursements of income
by source and by payee. Gains and losses on disposition of property shall be
netted and reported with receipts of principal.
5. For
guardians and conservators, accounts shall list separately all receipts by
source and all disbursements by payee. Gains and losses on disposition of
property shall be netted and reported with receipts. For each asset comprising
the reported "Balance in Hands of Fiduciary," excluding all Tangible
Personal Property, the Fiduciary shall provide Proof of Assets.
6. All
accountings shall be capable of being understood by a Person of average
intelligence, literate in English, and familiar with basic financial terms, and
who has read the accounting with care and attention.
7. The use of
terms of special meaning, such as "debit" or "credit" or
abbreviations, should be avoided or explained.
B. A Fiduciary account shall begin
with a concise summary of its purpose and content. The account shall begin with
a brief statement identifying the Fiduciary, the subject matter, the
relationship of Parties interested in the account to the account, and, if
applicable, appropriate notice of any limitations on or requirements for action
by Parties interested in the account. The following information shall be
provided.
1. The
sequence of the account (first, second, etc.) and identification of a final
account as such.
2. The period
covered by the account, with an indicated opening and closing date (
i.e., the accounting period).
3.
Identification of the Fiduciary by name; title (executor, administrator, etc.);
mailing address; and telephone number through which Fiduciary may be contacted.
4. At the
Fiduciary's option, a statement of the purposes of filing the account.
5.
Identification of the Attorney, if any, representing the Fiduciary by name;
business address; and telephone number.
6.
Identification of the Parties interested in the account as of the date of
filing, by name; capacity in which interested in the account (remainderman,
income beneficiary, ward, heir-at-law, etc.); and last known residence or
business address.
7. A summary
of the total receipts, total disbursements and total balance on hand at the end
of the account, all expressed in dollar values, supported by schedules in the
account.
C. A Fiduciary account shall contain
sufficient information to put parties interested in the account on notice as to
all significant transactions affecting administration during the accounting
period.
1. The first
account of a Fiduciary shall detail the items received by the Fiduciary and for
which the Fiduciary is responsible. The account shall not simply refer to the
total amount of an inventory filed separately or assets described in documents
other than the account itself. Tangible Personal Property may be referred to in
summary form; provided, however, that such summary designates where detailed
lists of the applicable Tangible Personal Property may be located.
2. In second
and subsequent accounts, the opening balance shall not simply refer to the total
value of assets on hand as shown in detail in the prior account, but shall list
each item separately. Tangible Personal Property may be referred to in summary
form, as in the manner prescribed for first accounts.
3.
Transactions shall be described in sufficient detail to give Parties interested
in the account notice of their purpose and effect.
4. All
balances on hand shall be itemized, on a separate schedule.
5. When
filing the final account in the administration of an intestate estate, if the
balance passes to more than one heir, the Fiduciary shall file a separate
schedule listing in detail the computation and satisfaction of disbursements
provided under the laws of intestacy, in order to reconcile the aggregate of
such disbursements.
6.
Compensation of Attorneys, professionals, and Fiduciaries shall be shown
separately in summary form, unless otherwise ordered by the Court. Extraordinary
administrative costs (such as appraisals, ancillary administration expenses,
etc.) shall be shown separately and explained. Administrative costs of Court and
other fees, postage, copying, telephone toll charges, and similar routine
out-of-pocket expenses may be shown in summary form.
7. With
regard to disposition of real estate by a Fiduciary, the Fiduciary shall show
the date of disposition, the gross sales price or disposition value, plus all
adjustments to such price or value incident to the disposition, including costs
of sale and applicable real estate and transfer taxes, to permit ready
determination, by Parties interested in the account, of how the net sale
proceeds received by the Fiduciary were calculated.
8. With
regard to gains and losses on disposition of property, the Fiduciary shall
provide with regard to each disposition the date of disposition, proceeds of
disposition and book value or cost of the disposed property.
9. Interest
and penalties paid in connection with late filing of tax returns, late payment
of tax liabilities, of any nature, probate citations for late filing or failure
to file reports or accountings, shall be shown separately and explained.
10. An
extraordinary allocation between principal and income shall be separately stated
and explained.
11. If the
Fiduciary makes an allocation, such as the computation of a formula marital
deduction gift, involving non-probate assets, it shall be explained in detail;
provided, however, that the non-probate assets involved in such computation may
be stated in summary form.
12. No
disbursements for administrative expenses shall be listed as
"estimated" or "reserved" without explanation.
D. A Fiduciary account shall include
both book value or cost of assets and current values of such assets at the
beginning and end of the accounting period.
1. "Book
value" (a) for Administrators, shall be the value of the property at the
date of death; (b) for trustees, shall be the book value of the prior Fiduciary
from whom the property was received; and (c) for guardians and conservators,
shall be the value of the property at the date of appointment.
2.
"Cost" shall be the consideration given or paid by a Fiduciary with
regard to property initially acquired by the Fiduciary.
3. If book
values at initial valuation cannot be readily determined, the values used shall
reflect a thoughtful decision by the appraiser; and the explanation of the
principal factors determining such decision shall be set forth in the account in
which such values are first reported.
4. If current
values for interim or final accountings cannot be readily determined, the values
used shall reflect a good faith judgment by the Fiduciary; and the explanation
of the principal factors determining such decision shall be set forth in the
account. Such valuation shall be subject to approval of the Court.
5. Book value
or cost shall not normally be adjusted for depreciation except upon specific
written order of the Court.
6. Book value
based on date of death may be adjusted to reflect federal valuation elections or
changes on audit of the estate or inheritance tax returns, upon appropriate
Motion to the Court.
7. A
successor Fiduciary or co-Fiduciary may adjust the book value or cost of assets
to reflect values at the start of the administration of, or subsequent receipt
of assets by, the successor Fiduciary or co-Fiduciary, upon appropriate Motion
to the Court.
8. Assets
received in kind by a Fiduciary in satisfaction of a pecuniary legacy shall be
carried at the value used for the purposes of such disbursement.
9. Current
values for the beginning and closing dates of the accounting period shall be
determined by the same methods used to determine book value, or by reference to
readily determinable fair market valuing techniques (for example, market values
for readily traded securities; principal balance for certificates of deposit,
etc.); provided, however, that any variations in valuing method shall be
explained.
10. Accounts
of the administration of any decedent's estate need not reflect current values
of assets at the end of the accounting period.
11. When an
asset is held by a trustee, guardian or conservator, under circumstances that
make it clear that it is not likely to be disposed of (for example, a residence
held for the use of a beneficiary), the Fiduciary may report an estimate of
current value; provided, however, that the Fiduciary discloses the use of an
estimate and the Fiduciary's basis for the estimate used.
E. The account shall show significant
transactions that do not affect the amount for which the Fiduciary is
accountable.
1. The
schedule listing such transactions shall consist of an information schedule,
which shall be set forth at the end of the other schedules required in an
account, setting forth each transaction by a separate number.
2. All
changes in investments not reflected as gains or losses reported on other
schedules of receipts shall be listed. These would include, but not be limited
to, stock dividends; stock splits; changes in name; exchanges; or
reorganizations.
3. All new
investments made within the accounting period, and in hand at the close thereof,
shall be noted on the schedules of assets on hand at the close of the accounting
period. Totally new investments, and increased or additional investments in the
same investment as shown on the schedules of assets on hand at the beginning of
the accounting period of the account, shall be separately designated or
annotated.
4. With
regard to book accounts, notes or installment obligations (whether secured or
not), detail regarding collections or payments shall be provided to permit
reconciliation of the balances shown on schedules of assets on hand at the
beginning and the close of the accounting period.
5. The
Fiduciary shall also report on the information schedule the details of any
events causing or resulting in a change in the manner, method or course of the
Fiduciary's administration. Such events would include, but not be limited to,
death of an interim income beneficiary; shifting enjoyment of the income to
another beneficiary; death of a remainderman during the course of administering
an estate; or a beneficiary reaching a designated age, after which time the
beneficiary has a right to mandate partial withdrawals of principal.