How to prepare estate accounts

They are not always required. See our guide “Are estate accounts required?”.

They do not have to be in any particular format. However, there is a standard format used by most probate professionals, which you can follow if you wish.

Standard format for estate accounts

A standard set of estate accounts is broken down into two or three sections.

They are:

Capital

Capital. This is simply a list of assets, such as bank accounts, house, shares, cars, and so on, and their value at date of death and/or the amount received, such as the closing balance of a bank account. There is also a list of liabilities, such as any outstanding mortgage and so on, along with values. Liabilities can include “post death” expenses, such as repayment of council tax, funeral expenses and payment of inheritance tax.

Income

The most accurate estate accounts will also include an Income section. This lists items treated as income during the probate process, such as interest on bank accounts and dividends on shares.

Distribution

Distribution. The distribution figure is the value of assets minus the value of liabilities, plus the value of income (if any). It describes how this figure is to be distributed to each beneficiary of the estate, as determined by the will or rules of intestacy.

Estate accounts and The Probate Wizard

We provide estate accounts in our Probate Reports package.

Find out more about The Probate Wizard.