Estate accounts
Estate accounts

The following Wills & Probate guidance note provides comprehensive and up to date legal information covering:

  • Estate accounts
  • Duty to keep estate accounts
  • Books of account
  • Interim distribution
  • Income tax to the date of death
  • Capital gains tax to the date of death
  • Inheritance tax
  • Payment on account
  • Corrective account
  • Clearance certificate
  • more

Duty to keep estate accounts

Section 25 of the Administration of Estates Act 1925 (AEA 1925) gives personal representatives (PRs) a duty to keep accounts of the administration of the estate.

It is also good practice to keep ongoing accounts.

PRs should make full accounts available on completion of the administration for distribution to the residuary beneficiaries.

The accounts must be made available for inspection by any beneficiary or creditor at their request.

If the PRs do not provide information to those properly requesting it, an application may be made by originating summons in the Chancery Division for an order for an account to be rendered.

Books of account

To produce estate accounts, the PRs must collect and maintain adequate information and documentation.

The PRs must maintain records that enable them to:

  1. prepare accounts from time to time

  2. deal with any tax queries, including the preparation of the Form IHT400 and the tax returns of the estate in the course of administration

  3. respond to a query from any beneficiary

The classic set of account books required is:

  1. journal

  2. cashbook

  3. ledger

The journal

The journal should record the assets and liabilities of the estate on death, profits and losses on the sale of investments, transfers, and adjustments that would not be reflected in the cashbook, such as legacies of particular assets. The narrative must give sufficient

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