Estate Accounts: What Are They and When Should They Be Produced?

When someone passes away, the job of managing their estate falls to an executor, who is responsible for ensuring that assets are properly collected, debts are paid, and the remainder of the estate is distributed to the beneficiaries according to the will. To keep track of all this, the executor must often prepare what are known as estate accounts. These documents provide a clear record of everything that has been done during the administration of the estate. But are estate accounts automatic? And when can a beneficiary request them, or when should an executor produce them? Let’s break it down in simple terms.

What Are Estate Accounts?

Estate accounts are detailed financial reports that show everything related to the management of the estate. They include:

A list of the assets in the estate (like money, property, and investments).
A record of any debts, taxes, or other expenses paid out of the estate.
A summary of what has been distributed to the beneficiaries.
Any income generated by the estate after the person passed away (for example, rental income or interest on savings).

These accounts allow beneficiaries to see exactly what happened with the estate’s money and property, providing transparency and ensuring everything is above board. Find out more.

Are Estate Accounts Automatic?

No, estate accounts are not automatically prepared and presented to the beneficiaries in every case. In many estates, especially smaller or straightforward ones, the executor may not need to provide formal accounts unless the beneficiaries request them or there’s a dispute. However, it’s a good practice for executors to keep detailed records of everything they do while administering the estate in case any questions arise later.

When Can You Request Estate Accounts as a Beneficiary?

As a beneficiary, you have the right to know what is happening with the estate, especially if it affects the portion you are entitled to receive. You can request estate accounts if:

You’re concerned about delays: If the executor is taking a long time to distribute the estate, you can ask for an update and request the estate accounts to see what has been done so far.
You suspect mismanagement: If you feel something might be wrong—like assets are missing or money is being misused—you can request the accounts to get a clear picture.
You simply want transparency: Even if everything is going smoothly, you might just want to see how the estate is being handled. Asking for estate accounts ensures transparency and peace of mind.

It’s important to note that executors aren’t required to provide daily updates or account for every minor decision immediately. However, if you make a reasonable request, they should be able to provide the estate accounts in a timely manner.

When Should You Produce Estate Accounts as an Executor?

As an executor, you are legally responsible for managing the estate carefully and in the best interest of the beneficiaries. While you don’t always need to prepare formal estate accounts, you should be ready to produce them in the following situations:

Court Orders: In some cases, particularly with larger or more complicated estates, the court may order that estate accounts be filed. This can happen, for example, when there is a formal application for an executor’s commission or if there’s a dispute among beneficiaries.
When Beneficiaries Request Them: If any beneficiary asks to see the estate accounts, you are required to provide them. This ensures transparency and shows that you are handling the estate properly.
If There’s a Dispute: If a beneficiary challenges your handling of the estate, it’s essential to have detailed estate accounts to show exactly what you’ve done. This can help resolve disagreements and demonstrate that you’ve fulfilled your duties correctly.
When Seeking Executor’s Commission: If you are asking for payment (commission) for your work as an executor, you may need to file estate accounts as part of your application. The court uses these records to decide whether the commission you’re requesting is reasonable.

How to Keep Good Estate Accounts

As an executor, it’s important to keep accurate records from the beginning. Even if you don’t end up providing formal accounts, keeping detailed records will help if questions or issues arise. Here’s what you should keep track of:

Distributions to beneficiaries.
Every asset in the estate and how it’s been handled.
Any expenses or debts paid out of the estate.
Income generated by estate assets.

Final Thoughts

Estate accounts are crucial to the estate administration process, providing a transparent record of how the estate is being managed. Whether you’re a beneficiary seeking information or an executor managing someone’s legacy, estate accounts ensure everything is handled fairly and responsibly.

If you need assistance with your role as an executor, advice on estate matters, or support with any aspect of Wills and Estate Planning in Brisbane, Sunshine Coast, Hervey Bay or Rockhampton, our experienced lawyers are here to help. Contact us today.

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