What are ‘Estate Accounts’?

At the conclusion of the estate administration process, the Personal Representatives are obligated to produce a set of ‘Estate Accounts’ which are a full breakdown of the financial transactions made during the administration. The accounts will detail the assets and liabilities at the date of death, any expenses paid/payments refunded due to cancellation of assets, the income received which needs to be declared accordingly to HMRC and also the final amount to be distributed to the Beneficiaries named under the Will.

The Administration of Estates Act 1925 declares that Personal Representatives have a duty to provide a full inventory of the estate, and the Estate Accounts therefore provide such full detail. The Personal Representatives must also provide the Residuary beneficiaries with a copy of the estate accounts. If the Personal Representative fails to provide this, the Beneficiary can apply to the Probate Registry for an “Inventory and Account Order” to obtain this information.

Recording the required information in the Estate Accounts is often a convoluted and time-consuming job. For this reason, many find it preferable to appoint a professional to deal with the winding-up of an estate, as professionals are experienced in drafting the accounts in a compliant manner.

Contact our experienced Private Client department on 0800 015 0340 to find out more information on estate administration.