Short hypothetical to frame the issue

Hypothetical: Jane Doe was appointed executor of her father’s Alabama estate. The estate holds a house, two bank accounts, a brokerage account, and a small business interest. Jane must file annual accountings to the probate court while administering the estate and a final accounting when she proposes to close the estate.

Detailed Answer — What documents and statements are usually required

Under Alabama probate practice (see Title 43, Code of Alabama for statutes and probate procedure), personal representatives must prepare accountings that show all receipts, disbursements, and distributions while administering the estate. The court requires enough documentation to verify the fiduciary’s actions and to protect beneficiaries’ rights. Typical required documents include the following.

1. Formal accounting or petition for settlement

A written accounting or petition that summarizes the accounting period (annual or final). It typically contains:

• Beginning cash and asset balances at the start of the accounting period.
• Itemized receipts—money or other property the estate received (e.g., collections of rent, sale proceeds, bank interest, final paychecks, life insurance paid to the estate).
• Itemized disbursements—payments the fiduciary made (e.g., funeral costs, creditor payments, taxes, maintenance, repairs, attorney and fiduciary fees).
• Ending cash and asset balances and a proposed distribution schedule (for a final accounting).

2. Inventory and appraisement

An inventory listing all estate assets, with values and appraisals where required. Alabama probate practice generally requires an initial inventory after appointment and updated inventories as assets are realized. The inventory supports the beginning balances in the accounting. See Title 43 of the Code of Alabama for statutory provisions governing inventories and administration procedures: Code of Alabama, Title 43 (Wills, Estates, and Fiduciaries).

3. Bank statements and cancelled checks

Copies of bank statements for estate accounts for the entire accounting period and copies or images of cancelled checks (or electronic payment records) that support itemized disbursements. Courts rely on bank records to verify receipts and payments.

4. Receipts, invoices, and vouchers

Original or copies of receipts for payments made (funeral bills, contractor invoices, utility bills paid for estate property, insurance premiums), invoices for goods or services, and vouchers supporting disbursements. These documents justify the fiduciary’s expenditures.

5. Sale documentation

If estate property was sold, provide closing statements, bills of sale, appraisal or market valuation used to set sale price, and allocation of sale proceeds. The court will want to see that sales were made for fair value and that proceeds were deposited into the estate account.

6. Property records and title documents

Deeds, titles, vehicle registrations, stock certificates, and brokerage statements showing transfers into or out of the estate. These documents prove ownership changes and support the final distribution.

7. Tax returns and tax payment records

Copies of estate income tax returns (federal Form 1041 where required), estate or inheritance tax filings (if any), and proof of tax payments or refunds during the accounting period. Taxes are priority claims, and courts expect tax handling to be documented.

8. Creditor claim files and notices

Copies of creditor claims filed and proof of notice to creditors (if required), and proof of payments or reasons for rejecting claims. The court must see that valid debts were handled properly before distribution to beneficiaries.

9. Fee statements and time records

Itemized fee statements for attorneys’ fees and fiduciary commissions, plus supporting time records or vouchers, so the court can approve compensation. Alabama courts scrutinize fees and may require justification before allowing payment from estate assets.

10. Proposed distribution schedule and releases

For a final accounting, include a clear proposed distribution plan showing how assets will be divided among beneficiaries, with suggested dates of distribution, and any beneficiary receipts or releases that will be collected after distribution.

11. Affidavits or additional sworn statements

Where appropriate, include sworn affidavits certifying the truth of the accounting, that notices were provided, or that there are no known creditors. Courts may require sworn statements under oath.

12. Court-specific forms and filings

Many Alabama probate courts provide or require specific forms (petitions for settlement of account, notices to beneficiaries or creditors, verification forms). Always check local probate court rules and practices for any required cover forms or service documents.

How the annual accounting differs from the final accounting

– Annual accounting: shows activity for a 12‑month period (or other court-ordered interval). It documents receipts and disbursements, continuing administration, upkeep of estate assets, creditor payments, taxes paid, and the current status of assets.

– Final accounting: is comprehensive for the entire administration period and includes a final inventory, closing cash balances, proof that debts and taxes have been settled (or reserves for them), a proposed final distribution, and releases from beneficiaries after distribution.

Where to find controlling authority

Many procedural details are governed by the Code of Alabama (Title 43) and by local probate court rules and forms. See the Code of Alabama, Title 43 (Wills, Estates, and Fiduciaries) for statutory guidance: https://www.legislature.state.al.us/codeofalabama/1975/coatoc.htm. For specific local filing requirements, contact or review the website of the county probate court where the estate is filed.

Practical note: Courts expect accountings to be complete, accurate, and supported by source documents. Missing or poorly documented accountings can lead to hearings, objections by beneficiaries, requests for additional documentation, or court disallowance of fees or expenditures.

Helpful Hints — Prepare a smooth annual or final probate accounting

• Start bookkeeping at appointment: open an estate bank account and post every receipt and expenditure with supporting documentation.
• Keep originals in a file: maintain organized folders of bank statements, cancelled checks, monthly reconciliations, invoices, receipts, and closing documents.
• Use clear schedules: provide simple, labeled schedules—Schedule A (receipts), Schedule B (disbursements), Schedule C (assets held), Schedule D (proposed distributions).
• Attach support: attach bank statements, bills, receipts, closing statements and appraisals as exhibits to the accounting or petition.
• Document valuations: for unusual or high-value items, include appraisals or comparable sales data to support valuations used in the accounting.
• Track creditor claims and taxes: keep proof of notices and payments; unresolved claims or unpaid taxes should be disclosed and reserves proposed in the final account.
• Check local forms: download and use the county probate court’s required forms — some counties require specific cover sheets or verification forms.
• Get beneficiary signatures when appropriate: a beneficiary release or receipt simplifies the closing process after a final accounting is approved.
• Consider professional help: if the estate owns a business, real estate, or complex investments, consult a probate attorney or accountant to prepare the accounting correctly.
• Be prepared for objections: even with solid documentation, beneficiaries can object; maintain transparent records and be ready to explain transactions in court.