If acting as an executor or trustee for an estate, you are required to keep detailed and accurate records of how they’ve managed the assets of the estate. The process of reviewing and obtaining the Court’s approval of the executor’s accounts is known as a “passing of accounts.”
A passing of accounts can occur either at the request of a beneficiary or another individual with a financial interest in an estate, or as a voluntary exercise by an executor/trustee. It is also necessary to have the estate accounts approved by the Court in the following circumstances:
- if the beneficiaries are minors or mentally incapable
- if there are unascertained or contingent beneficiaries
- if a beneficiary either wants to challenge the actions of an estate trustee or will not consent to the estate trustee’s compensation
- if a beneficiary is challenging how the estate accounts have been challenged by the estate trustee
If you are a beneficiary and want to force an executor to be transparent through a passing of accounts, it would be a good idea to seek legal advice. Here at Daniel & Partners LLP, our experienced estate litigation lawyers can guide you through the requirements for obtaining an order requiring a passing of accounts pursuant to the Rules of Civil Procedure.
If you are an executor or a trustee and you have beneficiaries who are demanding a passing of accounts or are withholding consent for executor or trustee compensation, Daniel & Partners LLP can assist with that as well. Please contact one of the estate litigation lawyers at Daniel & Partners LLP for more information.
A first passing of accounts must contain a statement of assets at the time of death cross-referenced with a statement showing the disposition of the assets. There are additional requirements for any subsequent passing of accounts and for occasions where an executor or trustee has made investments on behalf of the estate.
Managing an estate can be difficult or complicated, but it does not need to be unmanageable. If you keep proper records and are both aware of and properly discharge your obligations as well as your rights with respect to the estate, there is no reason why administering an estate should become a burden. If you have been appointed as an executor in someone’s will and do not know what to do next, please contact one of the estate lawyers at Daniel & Partners LLP to set up an appointment to obtain more information.
At Daniel & Partners LLP we offer a full range of services with respect to estates, from drafting wills and powers of attorney to complex matter of estate planning and trusts. We can assist executors and relatives with all aspects of estate administration matters (often referred to as probate). If an estate dispute arises, our team can also advise on the various options available to resolve the matter. Sometimes estate litigation cannot be avoided. In such instances, the estate litigation lawyers at Daniel & Partners LLP are here to help.
Contact our office today and arrange for a meeting.
Blog post written by Karen Shedden, NCA Candidate.