Introduction to California Probate – Part 6 Accounting, Distribution and Discharge
Today, we finish our series on the California probate process. Attorney, Benjamin Eagleton walks us through the process of accounting and distributing the estate and ultimately discharge upon completion. The probate process can be complex, but with a firm understanding in the process and a little guidance you should have a good understanding of how to get through the probate.
As always, if you have any questions about your real estate, business, estate planning, or any other legal issue, please let us know by e-mailing managing shareholder Keith Dunnagan at kbdunnagan@bpelaw.com.
Also, remember that we do legal presentations for business and community organizations. If your group would like to schedule a presentation, please contact me to setup a date and time.
Introduction to California Probate – Part 6
Accounting, Distribution and Discharge
By: Benjamin H. Eagleton, Esq.
In the first five Parts of this series we discussed the Probate process generally and some of the many procedures relating to a formal Probate proceeding in California. In this final Part, we provide a 1,000 ft. view of the remaining action items involved in winding-up the estate.
When the estate is in a condition to be closed, i.e. when all assets have been identified, claims have been resolved, and property remains to be distributed, the Executor or Administrator is required to file a final account and to petition the court for authority to distribute the estate. Generally, this will take place within 12 months from the time when the Executor or Administrator was appointed. For taxable estates, this generally takes place within 18 months.
Final Accounting. In the Probate context, an accounting is a record of all transactions that took place during the administration. The accounting can be rather simple, or very complex depending on the assets and circumstances of the estate. Filing an accounting gives all interested parties an opportunity to attack the accounting period and object to the transactions reported therein. A best practice is to enlist the services of an experienced Trust and Estate Accountant, as the accounting must comply with Probate Code sections 1060-1064 and be prepared in a specific format.
It is always advised that the Accounting be prepared with as much detail as possible, and for the accompanying report to include a detailed narrative of every action taken by the Executor or Administrator during the proceeding. This is because the Executor or Administrator’s goal is to have the entire administration approved by the Court. If a transaction is omitted from the accounting, or an action taken by the Executor or Administrator is not reported to the Court, the estate will not be completely settled, and the omission could be the subject of future litigation.
Final Distribution. Once the Accounting and Report has been approved by the Court, a distribution order is entered, and the Executor or Administrator will be tasked with carrying-out the final distribution. If real property remains on hand to be distributed, a certified copy of the order is recorded in the County and that operates to update record title of ownership. If only liquid assets remain, checks can be written from the estate account and delivered to the beneficiaries or heirs. Sometimes, beneficiaries or heirs are missing and their whereabouts are unknown. In such circumstances the Executor or Administrator can obtain Court authority to distribute a missing heir’s share of the estate to the County treasurer as unclaimed property.
Final Discharge. When all property on hand at the end of the administration has been distributed according to the Court’s order, the very last step of the administration takes place- discharging the Executor or Administrator. This is a critical step which officially releases the Executor or Administrator from the Court’s jurisdiction. If the Court never discharges you from the office of Executor or Administrator, the Probate proceeding remains pending, and you may be on the hook to answer claims should any arise (even if those claims can be easily defeated you will need to appear and answer.)
The Probate process does not have to be a terrible experience. With the proper guidance, it can be easily navigated. A competent Probate Attorney can help you minimize the time and expense involved in transferring property upon death.
The attorneys at BPE Law Group have years of experience related to real estate and probate issues that may affect your rights. No two situations are the same and each requires its own independent legal analysis of the facts. If you have a real estate or probate matter the attorneys at BPE Law Group are hear to help.
The attorneys of BPE Law Group, PC. have been advising our clients on real estate, business and estate planning issues for over 20 years and have assisted numerous clients in probate, business and real estate matters and have represented and advised brokers on their professional obligations as well as consumers on their rights. If you have questions concerning legal matters, give us a call at (916) 966-2260 or e-mail Keith at kbdunnagan@bpelaw.com. Our flat fee consult for new clients may get you the answers you need for the questions you have.
The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are facing a legal issue of any kind, get competent legal advice in your State immediately so that you can determine your best options.
Today, we finish our series on the California probate process. Attorney, Benjamin Eagleton walks us through the process of accounting and distributing the estate and ultimately discharge upon completion. The probate process can be complex, but with a firm understanding in the process and a little guidance you should have a good understanding of how to get through the probate.
As always, if you have any questions about your real estate, business, estate planning, or any other legal issue, please let us know by e-mailing managing shareholder Keith Dunnagan at kbdunnagan@bpelaw.com.
Also, remember that we do legal presentations for business and community organizations. If your group would like to schedule a presentation, please contact me to setup a date and time.
Introduction to California Probate – Part 6
Accounting, Distribution and Discharge
By: Benjamin H. Eagleton, Esq.
In the first five Parts of this series we discussed the Probate process generally and some of the many procedures relating to a formal Probate proceeding in California. In this final Part, we provide a 1,000 ft. view of the remaining action items involved in winding-up the estate.
When the estate is in a condition to be closed, i.e. when all assets have been identified, claims have been resolved, and property remains to be distributed, the Executor or Administrator is required to file a final account and to petition the court for authority to distribute the estate. Generally, this will take place within 12 months from the time when the Executor or Administrator was appointed. For taxable estates, this generally takes place within 18 months.
Final Accounting. In the Probate context, an accounting is a record of all transactions that took place during the administration. The accounting can be rather simple, or very complex depending on the assets and circumstances of the estate. Filing an accounting gives all interested parties an opportunity to attack the accounting period and object to the transactions reported therein. A best practice is to enlist the services of an experienced Trust and Estate Accountant, as the accounting must comply with Probate Code sections 1060-1064 and be prepared in a specific format.
It is always advised that the Accounting be prepared with as much detail as possible, and for the accompanying report to include a detailed narrative of every action taken by the Executor or Administrator during the proceeding. This is because the Executor or Administrator’s goal is to have the entire administration approved by the Court. If a transaction is omitted from the accounting, or an action taken by the Executor or Administrator is not reported to the Court, the estate will not be completely settled, and the omission could be the subject of future litigation.
Final Distribution. Once the Accounting and Report has been approved by the Court, a distribution order is entered, and the Executor or Administrator will be tasked with carrying-out the final distribution. If real property remains on hand to be distributed, a certified copy of the order is recorded in the County and that operates to update record title of ownership. If only liquid assets remain, checks can be written from the estate account and delivered to the beneficiaries or heirs. Sometimes, beneficiaries or heirs are missing and their whereabouts are unknown. In such circumstances the Executor or Administrator can obtain Court authority to distribute a missing heir’s share of the estate to the County treasurer as unclaimed property.
Final Discharge. When all property on hand at the end of the administration has been distributed according to the Court’s order, the very last step of the administration takes place- discharging the Executor or Administrator. This is a critical step which officially releases the Executor or Administrator from the Court’s jurisdiction. If the Court never discharges you from the office of Executor or Administrator, the Probate proceeding remains pending, and you may be on the hook to answer claims should any arise (even if those claims can be easily defeated you will need to appear and answer.)
The Probate process does not have to be a terrible experience. With the proper guidance, it can be easily navigated. A competent Probate Attorney can help you minimize the time and expense involved in transferring property upon death.
The attorneys at BPE Law Group have years of experience related to real estate and probate issues that may affect your rights. No two situations are the same and each requires its own independent legal analysis of the facts. If you have a real estate or probate matter the attorneys at BPE Law Group are hear to help.
The attorneys of BPE Law Group, PC. have been advising our clients on real estate, business and estate planning issues for over 20 years and have assisted numerous clients in probate, business and real estate matters and have represented and advised brokers on their professional obligations as well as consumers on their rights. If you have questions concerning legal matters, give us a call at (916) 966-2260 or e-mail Keith at kbdunnagan@bpelaw.com. Our flat fee consult for new clients may get you the answers you need for the questions you have.
The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are facing a legal issue of any kind, get competent legal advice in your State immediately so that you can determine your best options.