Tenth Annual Probate Administration

Transcription

1 Tenth Annual Probate Administration November 13, 2014 Chapter 9 1:30-2:00pm Accountings Brian D. Ives, Holman Cahill Garrett Ives Oliver & Andersen, PLLC PowerPoint distributed at the program and also available for download in electronic format: 1. Probate Accountings Electronic format only: 1. Exhibit B Summary of Accounting 2. Guardianship of Estate Form 3. Verified Accounting

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3 11/6/2014 PROBATE ACCOUNTINGS Brian D. Ives Holman Cahill Garrett Ives Oliver & Andersen pllc The 5 Ws of Probate Accountings WHERE do they fit into the process? WHEN are they required and due? WHO does them and can request them? WHY are they required and why you can t ignore them? WHAT do they look like? 1

4 11/6/2014 Where Accountings Fit in Probate? After Inventory and at/before closing Non-intervention Probate RCW Full Administration Probate RCW TEDRA actions RCW 11.96A.080 When are they Required and Due? NONINTERVENTION PROBATE a. Not generally required b. RCW if court orders after good cause shown, one year after PR appointed or after last report c. RCW (2) if petition w/in 30 days of filing Declaration of Completion and court orders d. RCW voluntary PR request 2

5 11/6/2014 When are they Required and Due? FULL ADMINISTRATION PROBATE a. RCW Not less frequently than annually. b. RCW When the estate is ready to be closed. When are they Required and Due? TEDRA MATTERS Included in broad TEDRA authority by court order RCW 11.96A.080 DEATH, RESIGNATION, OR REVOCATION OF LETTERS RCW

6 11/6/2014 Who does the Accounting? PR is responsible and must sign the verification PR may hire cpa/accountant or attorney PR s representatives if deceased or incapacitated Who may Request an Accounting? Beneficiary after 1 year RCW Heir, devisee, or legatee w/in 30 days of filing Declaration of Completion RCW (2) Any interested party under TEDRA RCW 11.96A.030(4-5) broad: creditors, GALs, Attorney General 4

7 11/6/2014 Why are Accountings Required? Ensure that estate property is used and disbursed properly If not done Revocation of PR Letters RCW Court may impose attorney fees for failure to do accounting or erroneous accounting RCW What to Include in an Accounting? Basically: Assets at start, what comes in, what goes out, ending assets RCW The report for the period shall include such of the following as the court may order: A description of the amount and nature of all property, real and personal, that has come into the hands of the personal representative; a statement of all property collected and paid out or distributed by the personal representative; a statement of claims filed and allowed against the estate and those rejected; any estate, inheritance, or fiduciary income tax returns filed by the personal representative; and such other information as the order may require. 5

8 11/6/2014 What to Include in an Accounting? RCW Such report shall contain a statement of the claims filed and allowed and all those rejected, and if it be necessary to sell, mortgage, lease or exchange any property for the purpose of paying debts or settling any obligations against the estate or expenses of administration or allowance to the family, he/she may in such report set out the facts showing such necessity and ask for such sale, mortgage, lease or exchange; such report shall likewise state the amount of property, real and personal, which has come into his/her hands, and give a detailed statement of all sums collected by him/her, and of all sums paid out, and it shall state such other things and matters as may be proper or necessary to give the court full information regarding any transactions by him/her done or which should be done. What to Include in an Accounting? RCW Such final report and petition shall, among other things, show that the estate is ready to be settled and shall show any moneys collected since the previous report, and any property which may have come into the hands of the personal representative since his/her previous report, and debts paid, and generally the condition of the estate at that time. It shall likewise set out the names and addresses, as nearly as may be, of all the legatees and devisees in the event there shall have been a will, and the names and addresses, as nearly as may be, of all the heirs who may be entitled to share in such estate, and shall give a particular description of all the property of the estate remaining undisposed of, and shall set out such other matters as may tend to inform the court of the condition of the estate, and it may ask the court for a settlement of the estate and distribution of property and the discharge of the personal representative. 6

9 11/6/2014 What to Include in an Accounting? RCW and.030 Trustee accounting 2003 King County Probate Policy & Procedures Manual Exhibit B attached Income vs. Principal Guardianship of Estate form modified - attached Certificate for PR - attached Other RCW PR shall produce receipts or canceled checks RCW Order of Payment of Debts RCW Request for special notice of proceedings - (1)(c) Filing of Accounts 7

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12 Total Assets at Market Value as of the beginning of review period. Income Received from All Sources Interest & Dividends: (List account and amount received) Other Receipts: (List source and amount received) TOTAL RECEIVED Total Income: Disbursements and Outgoing Payments TOTAL Utilities Phone/Cable Insurance Other (Specify): Professional Fees Paid to Others: Attorney Fees: Asset Management Fees Bond Premium Accountant/Tax Preparation Fees Other (Specify): Residential Real Property Expenses: Maintenance & Repair Homeowners/Co-op Dues Property Taxes Mortgage Insurance Other (Specify): Investment Property Expenses: Other Expenses: Income Tax Payments Costs Advanced Bank/Service Fees Other (Specify): PROBATE ACCOUNTING-1

13 Total Disbursements: Adjustments to Market Value of Estate: Addition of Assets/(Liabilities) Not Previously Reported (Do not use this section for assets purchased) Deletion or Reduction in Value (Assets)/Liabilities: (Listed on previous accounting) Unrealized Gains/(Losses) Increase/(decrease) in unrealized gain on securities Increase/(decrease) in market value of real property Increase/(decrease) in market value of personal property Other Adjustments (Specify) Total Adjustments to Market Value of Estate: Ending Balance at Market Value, as of (mm/dd/yyyy) : Balance Sheet for the Estate ASSETS: Description: Cost Basis at Market Value at Market Value at End of Accounting: Start of Accounting: End of Accounting: Accounting: Date: Date: Date: Real Property: Receivables: (Mortgages, Liens, Notes payable to the Incapacitated Person, the Estate, or Trust) Liquid Assets: (Investment Accounts, Stocks, Bonds, Securities, IRA, Cash) Personal and Other Property: (Household Goods, Vehicles, Burial Plots, funeral Plans, Life Insurance) PROBATE ACCOUNTING-2

14 Total Assets: LIABILITIES: Total Liabilities: PROBATE ACCOUNTING-3

15 SUPERIOR COURT OF WASHINGTON COUNTY OF KING ) Estate of: ) NO XXXXX-XSEA ) JOHN DOE, ) VERIFIED ACCOUNTING BY ) PERSONAL REPRESENTATIVE Deceased. ) STATE OF WASHINGTON ) ) ss COUNTY OF KING ) The undersigned Personal Representative of this Estate, being first duly sworn on oath, states: The exhibit attached hereto contains a true accounting of the estate accounts of John Doe s estate which have come into my possession or knowledge. CERTIFICATION I declare under penalty of perjury of the laws of the State of Washington that to the best of my knowledge and ability, the statements made and accounting provided in this document accurately reflect the estate accounts of the Estate of John Doe. DATED this day of November, 2014 at Seattle, WA. Fred Doe, PR of The Estate of John Doe ACCOUNTING Page 1