Blog

Accounting for Everything

As discussed in other posts the California probate process is 7 months minimum. At the end a final petition is filed. This informs the Court, and the interested parties, what has transpired during the probate.

In a formal probate a full accounting is typically included in that final petition. This will show the money that has come in, gone out, and what’s left. There will be supporting schedules, showing every transaction, for each category. Here is a sample from a hypothetical case:

CHARGES
Property on hand at beginning of account (Inventories):    $500,000.00
Additional Property Received (Supplemental Inventories):    $0.00
Receipts during accounting period (Schedule A):      $30,000.00
Gains on Sale or Other Disposition (Schedule B):     $0.00
Net Income from trade or business (Schedule C):     $0.00
Unable to Reconcile:         $0.00
TOTAL CHARGES:         $530,000.00
CREDITS
Disbursements during accounting period (Schedule D):    $30,000.00
Losses on Sale or Other Disposition (Schedule E):     $165,000.00
Net Loss From Trade or Business (Schedule F):     $0.00
Distributions (Schedule G):        $0.00
Unable to Reconcile:         $0.00
Property on Hand at close of account (Schedule H):     $335,000.00
TOTAL CREDITS:         $530,000.00

The key here is that total charges and total credits much balance TO THE PENNY!

In some cases the full accounting is waived but even in those cases there is a lot of financial information that needs to be addressed for the Court. Thus, good record keeping is key in ALL probate cases!

-John

Ratings and Reviews