The inventory shall also contain an account of ali money belonging to the deceased, which shall have come to the hands of the executor or administrator; and if there be none, the fact shall be so stated in said inventory. of In some States the appraisers shall also set off and allow to the widow, and children under the age fifteen years, if there be any, or if there be no widow, then to such children, sufficient provisions or other property to support them for twelve months from the death of the decedent and if the widow or children have, since the death of the deceased, and previous to such allowance, consumed for their support any portion of the estate, the appraisers shall take the same into consideration in determining the amount of the allow ance. When there is not sufficient personal property, or property of a suitable kind, to set off to the widow or children, the appraisers shall certify what sum or further sum, in money, is necessary for the support of such widow or children. The appraisers shall not include in the inventory, the provisions, property or money, set off and allowed by them, to the widow or children, but the same shall be stated in a separate schedule, signed by them and returned, with the inventory, to the Court, by the executor or administrator. Upon the completion of the inventory, it shall be signed by the appraisers, and a copy thereof shall be retained by the executor or administrator, and he shall return the original to the Court. If an executor or administrator shall neglect or refuse to return such inventory within three months after his appointment, the Court shall issue an order requiring such executor or administrator to return an inventory according to law, or to show cause before the Court why an attachment should not be issued against him. Whenever personal property, or assets of any kind, not mentioned in any inventory that shall have been made, shall come to the knowledge or possession of an executor or administrator, he shall cause the same to be appraised in the manner aforesaid, and an inventory thereof to be returned within two months after its dis covery. The making and return of such inventory may be enforced in the same manner as in the case of the first inventory. The executor or administrator shall, as far as he is able, collect the assets of the estate, within one year after the date of the administration bond. If, from the situation of the assets belonging to the estate, more than eighteen months, from the date of administration bond, is required for their collection, the Court may, upon motion, and being satisfied thereof by the affidavit of the executor or administrator, extend the time for that purpose. Every executor or administrator shall, within eighteen months after his appointment, render an account of his administration upon oath, and he shall in a like manner render such further accounts of his administration, every twelve months thereafter, and also at such other times as may be required by the Court, until the estate shall be wholly settled, and he may be examined upon oath on any matter relating to his accounts and the payments therein mentioned, and also touching any property or effects of the deceased, which have come to his hands. The time allowed by the Court to collect the assets of the estate shall not operate as an allowance of further time to file the accounts. If any executor or administrator shall fail to render his accounts as directed, he may be compelled to do so, as in case of failing to file an inventory. In rendering such account, every executor or administrator shall produce vouchers for all debts and legacies paid, and for all funeral charges, all just and necessary expenses, which vouchers shall be filed with their amounts, and they, together with the account, shall be deposited and remain in the Probate or Surrogate Court. No executor or administrator shall be accountable for any debts inventoried as due to the deceased, if it shall appear to the Court that they remain uncollected without his fault. Many other points relating to the sale of real and personal property, distribution of proceeds, proceedings by creditors, against heirs and devisees, proceedings when estate is insolvent, etc., might be given, but it is thought that sufficient has been stated to guide you. However, a careful study of the statutes of your State should be made. After the law has been complied with, it is an easy matter to conduct the accounts of an estate, yet many points arise that require the nicest discrimination. While the law requires an inventory to be taken within three months after an executor or administrator has been appointed, it should be taken at the earliest possible moment, as the inventory is intended to be as at the death of the testator. When an estate consists of real estate only, a delayed inventory may not cause much trouble or inconvenience, but when a part of the estate consists of a business house with a large stock of goods, and the business is to be continued, it will become more difficult the longer it runs. When the business of a testator is to be continued by an executor or administrator, I would advise in all cases to open a new set of books according to the inventory taken by the appraisers. Although the appraisers have nothing to do with the testator's liabilities, the executor or administrator, should ascertain the items and amounts as completely and accurately as possible. The books should be devised to meet the special requirements of the business, and be kept by double entry. The books should be so arranged and kept that the true condition of the business might be shown at all times. This point is of the greatest importance to executors and administrators, because the law holds them personally responsible for the liabilities under certain provisions. If other assets should come into the hands of the executor or administrator properly belonging to the inventory, or if other liabilities should be ascertained after the books have been opened, they should be entered at once, with proper explanations. The yearly allowance and annuities to the widow and children must be entered as liabilities; they are not payable, however, until after the payment of debts. Within eighteen months after an executor or administrator has been appointed, he must file an account of his administration, also every twelve months thereafter, until a final account is rendered. With these accounts all vouchers for expenditures must also be filed. Το comply with this requirement, a voucher check should be used for the payment of all accounts and bills, except for small items of expense where a voucher can not be had. For these the executor or administrator should make a voucher weekly or monthly. In rendering an account for an estate of this kind, two accounts should be made, one for the business and one for the estate proper. The account for the estate should show receipts and expenditures itemized, with vouchers numbered, while the business account should show the accounts as taken from the Ledger, showing the voucher numbers for each account, that is, say the Rent account is $2,000. the amount would be covered by vouchers 1127 to 1139, etc. Should you ever be called upon to act as executor or administrator, or to keep the accounts of an estate, study carefully the laws of your State, and if an attorney is not employed, go to the Court for instructions and information. 5. The only corporations that may act as administrator or executor, are those having authority by their charter. Trust Companies are incorporated in many of the States with power to act as Executors and Administrators. 6. When shares are held in the names of joint executors, all of them must join in a transfer of the shares so held. 7. When an administrator sells corporate shares without an order of the court, the sale must be a public one. If the sale be a private one, it must be under order of the Court, and in strict compliance with that order, therefore, it is the duty of a corporation to ascertain whether the terms of the Court have been fully complied with before it allows shares to be transferred by the administrator. If the Court's order has not been properly carried out, the corporation will be liable for the loss occasioned by a transfer and the issue of new certificates. 8. It depends largely upon the nature of the trust. The laws are in favor of the corporation when it acts in good faith, but to avoid complication and possible loss and litigation, I would advise every corporation to have proof of authority before transferring shares for administrators, executors, guardians, assignees, etc. 9. Yes, they have the right to vote, and without any formal transfer of the shares to them on the books of the company, but the corporation should have proof of their fiduciary capacity by producing testamentary letters. 10. Before a corporation should transfer shares which have been sold by an administrator, it should ascertain fully, the administrators right to sell, and if the sale was in strict compliance with the law and order of the Court. If transfers are made without ascertaining these facts, the corporation will be liable to the estate. 11. It depends largely upon the terms of the will and the charter of the corporation. By the National Bank Act, persons holding shares as executors, administrators, guardians or trustees shall not be personally subject to any liability as Shareholders, but the estates and funds in their hands shall be liable. There are many things, however, that will make an executor or administrator liable as shareholder, and if you should be called upon to act in such capacity, do not make any investments, sales, transfers or any important transaction without the order of the Court and competent legal advice. 12. No, he would not be liable if he acted in good faith, and the bank was generally known or believed to be a sound one. 13. Yes. 14. To see that they have proper authority, and that they act according to law and fulfill strictly every detail in every order of the Court. D. A. KEISTER & CO. 88 WALL STREET, NEW YORK. RAILROAD, INSURANCE, BUILDING ASSOCIATION |