The administrator, having no will to go by, should familiarize himself with the law of distribution prevailing in the state of the decedent's residence. It does not pay to rely upon one's memory about this law because it is frequently amended in the different states. REVIEW QUESTIONS 1. What causes difficulty in dealing with the financial records of a decedent? How may a decedent's papers be classified? 2. What should be done first by an accountant for an estate? What should be done with the books of the decedent? 3. What is "briefing" the will? What is the object of briefing the will? Where may this brief be placed of record? CHAPTER LXVI THE ACCOUNT TO BE RENDERED § 564. The Final Accounting The ultimate purpose of the keeping of estate accounts being, as has been said (see § 549), the fulfilling of the law's requirement that the personal representative file an accounting of his stewardship, it becomes necessary to understand the form of this accounting, the facts which it is required to show, and the conditions under which it is rendered, before one can adequately see the necessity for the many differences between commercial and probate accounting. The accounting is rendered by the executor or administrator to the court which appointed him, and is usually made after the assets have been collected and the administration and funeral expenses and the debts have been paid, and such payments as the executor has found advisable have been made on account of legacies. Its purpose is to show the amount of cash and property received by the representative, the disposition he has made of it, and the balance, if any, remaining in his possession. The forms of accounting vary in the several states. Some of them are exceedingly simple statements of receipts and disbursements. Ordinarily this accounting is the only one, and is called the "final" accounting, and on the basis of it the executor's accounts are judicially settled. But when the administration is prolonged or where special circumstances make it advisable, the executor may voluntarily render, or may be compelled to render, one or more intermediate accounts. § 565. Effect of Accounting As an accounting, whether it is called "intermediate" or "final," is conclusive only as to matters stated in it and as to persons legally notified of it, no accounting can be considered absolutely final. Not infrequently there are several so-called final accountings in the administration of one estate. After an accounting, it may be discovered that there are assets which the executor has overlooked, or that legal notice of the accounting was not given to all of those entitled to it, one of whom is disposed to resent the disregard of his rights. In such case the executor may be required to render a further accounting. The matters as to which an accounting is conclusive in the absence of fraud or gross inaccuracy may be summarized as follows: 1. That the executor has been charged with all the money and property that could be discovered at the time of the accounting. 2. That all increases and decreases in the estate assets have been correctly calculated. 3. That the executor has been charged with all interest for which he was responsible. 4. That all payments made to creditors, legatees, or next of kin, and for administration expenses are correct. § 566. Time of Accounting An intermediate account may be filed voluntarily by the representative at any time. A final account may be filed voluntarily at any time after the expiration of the period allowed for the administration of the estate. A compulsory intermediate or final accounting is a matter of statutory regulation and the laws of the several states must be consulted as to when such procedure may be ordered. Such an accounting is usually ordered when the executor has failed to account within a rea sonable time after the administration should have been completed. In some cases an account may be ordered on petition of a creditor or of a legatee whose claim or legacy has not been paid. § 567. Procedure in Accounting The usual procedure is for the personal representative to present the account to the court with a petition that it be allowed, whereupon the court will notify all persons interested in the estate, that on a fixed day the account will be judicially considered. Prior to that day, the account on file with the court is open to inspection. After examining the account on the day named and considering any objections raised against it, the court will render a decision allowing, or refusing to allow, the account. If the account is not allowed, one satisfactory to the court must be presented. If the court is satisfied with the accounting it will issue a decree of distribution directing the executor to make distribution of the estate assets then remaining in his hands as set forth in the decree. § 568. Form of Account It is rarely that the form of account is legally prescribed. The statute usually states broadly what the account shall show. This has resulted in practice in special forms for each state. These forms answer the local statutes and can usually be secured from the clerks of the probate court. In some states they are simply the cash receipts and disbursements, while in others they are more complex and go into greater detail. It always saves work in such matters to follow precedents and use whatever forms the local court approves. § 569. Vouchers for the Account As in all legal accountings an executor is required to make an affidavit that to the best of his knowledge and belief the statement rendered is a full and true account of all the assets that have come into his possession and of all his disbursements. or disposition of them. Vouchers are required for disbursements though in some states small payments to a limited amount are excepted from the rule. If any vouchers are lost the executor will be required to prove the payment by other evidence. The vouchers in due form should be filed in court with the account. REVIEW QUESTIONS 1. When is an accounting of administration made? What must it show? Distinguish between final and intermediate accounting. 2. As to what matters is an account conclusive? As to what people? When may a further accounting be required? 3. When may an intermediate account be filed? When a final account? Distinguish between a voluntary and a compulsory account. When may a compulsory account be ordered? 4. What is the usual procedure for an account? If the account is not allowed, what must be done? 5. In what form should an account be rendered? Have you a copy of the form used in your own state? 6. What evidence of the correctness of his account must the personal representative furnish? What is the usual rule as to vouchers? |