Detailed Answer

This FAQ explains the statements and financial documents commonly required for annual and final probate accountings in Michigan. It is written for a reader with no legal background and uses plain language. This is educational only and not legal advice; if you need help preparing or filing an accounting, contact a Michigan probate attorney.

What is a probate accounting?

A probate accounting is a formal financial report that the personal representative (executor or administrator) files with the probate court to show how the estate’s money and property were managed. Courts use accountings to protect heirs, beneficiaries, and creditors and to decide whether to approve the fiduciary’s actions and fees.

Where to find Michigan probate rules and forms

• Michigan probate forms (inventories, account forms, instructions): courts.michigan.gov — Probate Forms
• State law governing estates and fiduciaries (Estates and Protected Individuals Code, Chapter 700): Michigan Legislature — search Chapter 700 (MCL 700.1101 et seq.) for specific statutory language

Annual vs. final accountings — the difference

Annual accounting: A periodic report the court may require while the estate remains open. Some estates require annual (or periodic) accountings to keep the court and beneficiaries informed.

Final accounting: The concluding report prepared when the personal representative is ready to close the estate. The final account shows all activity from appointment to closing and requests the court to discharge the fiduciary and approve distributions.

When is each required?

• Court order or local practice: The probate court may order annual accountings for complex or long-running estates.
• Final accounting: Required when the personal representative seeks court approval to distribute remaining assets and close the estate.

Core statements and summaries required in both annual and final accountings

At a minimum, Michigan probate courts expect an accounting to include clear, organized statements that show:

• Opening inventory / beginning balance — a statement of what the estate owned when the accounting period began (often the inventory filed early in administration).
• Receipts and income — all money received by the estate during the accounting period: wages, pension, Social Security paid to decedent’s estate, rental income, sale proceeds, interest and dividends, insurance or annuity proceeds, refunds, and transfers into the estate.
• Disbursements and expenses — all payments made from estate funds: funeral costs, probate court costs, attorney fees, personal representative fees, creditor payments, property maintenance, mortgage payments, taxes, insurance, and any other expenditures.
• Assets on hand (ending inventory) — a current list of estate assets at the end of the accounting period with values: bank accounts (with dates and balances), investments, real property (with estimated value and description), vehicles, business interests, and personal property.
• Liabilities and claims — amounts paid or remaining on valid claims and creditor balances that remain unpaid (or a statement that all allowed claims are paid).
• Distributions — who received distributions, the amount each beneficiary received, and the basis for each distribution (for final accounts, this includes the proposed final distribution schedule).
• Fiduciary compensation — calculation and claim for personal representative fees and attorney fees, including the statutory or agreed method used to compute fees.
• Accounting summary / reconciliation — a clear reconciliation that shows how the beginning balance plus receipts minus disbursements equals the ending balance or the amount distributed.

Supporting documents typically required or strongly recommended

Court clerks and judges expect supporting evidence for material items in the accounting. Keep and file originals or certified copies when the court requests them. Common supporting documents include:

• Inventory and appraisals — the initial inventory and any formal appraisals for real estate, business interests, valuable personal property, or antiques/jewelry.
• Bank statements and cancelled checks — statements covering the reporting period and copies of canceled checks for significant disbursements.
• Receipts, invoices, and vendor bills — receipts for funeral costs, repairs, maintenance, contractor invoices, medical bills paid by the estate, and creditor invoices.
• Settlement statements — closing statements (HUD/Closing Disclosure) from any real estate sale; brokerage statements for sales of stocks
• Tax returns and correspondence — filed federal and state estate or income tax returns for the estate, and correspondence with tax authorities about liabilities or refunds.
• Proof of creditor payments — checks, receipts, or releases showing creditor claims were paid or satisfied.
• Certificates of service — proof that the accounting and notice were served on required parties (heirs, beneficiaries, and creditors where required).
• Bond and insurance records — proof of payment of fiduciary bond premiums (if a bond was required) and liability insurance for estate property.
• Orders and prior court approvals — copies of any court orders authorizing transactions (e.g., the sale of real estate, payment of extraordinary fees, or settlement of claims).

Additional items commonly requested for a final accounting

• Complete ledger covering the entire administration period (detailed receipts and disbursements by date).
• Proposed final distribution schedule and copies of beneficiary releases or receipts as proof of delivery.
• Evidence that all probate creditors were given notice and that the claims period has run or claims have been resolved.
• Final tax clearance or confirmation of tax liabilities and proofs of tax payments when applicable.
• A proposed order approving the final account and discharging the fiduciary, prepared in the format required by the local probate court.

Practical hypothetical example

Hypothetical estate: Decedent leaves a house, two bank accounts, a brokerage account, and a small amount of personal property. The personal representative sells the house, pays funeral costs, pays a creditor claim, pays state income taxes related to the estate, and distributes remaining funds to beneficiaries.

Required filings for the final account would typically include:

• Beginning inventory (assets and values) and appraisal for the house.
• Bank and brokerage statements showing deposits, sale proceeds, and transfers.
• Real estate closing statement showing sale proceeds and sale costs.
• Receipts for funeral, taxes, and major repairs or maintenance costs paid by the estate.
• Ledger showing all receipts and disbursements, reconciled to ending balances.
• Proposed distribution showing each beneficiary’s share, plus receipts signed by beneficiaries after distribution.

How to prepare and file an accounting in Michigan

1. Collect records: Gather bank records, vendor receipts, tax returns, closing statements, and appraisals.
2. Prepare a clear ledger: List transactions chronologically with dates, payees/receivers, and amounts.
3. Use Michigan probate forms when available: The State Court Administrative Office provides standard forms and instructions on probate account preparation (Probate Forms).
4. Serve interested parties: Provide copies of the accounting to beneficiaries and others with a right to notice; keep certificates of service for the court.
5. File with the probate court: Submit the accounting, supporting documents, and a proposed order. Follow local court rules for formatting and filing.
6. Attend hearing if required: The court may schedule a hearing to consider objections and approve the account.

Common problems and red flags that invite court questions

• Missing receipts or vouchers for large disbursements.
• Unexplained transfers between personal and estate accounts.
• Lack of appraisal or undervaluation of significant assets (real estate, collectibles).
• Late or missing creditor payments without an explanation or court approval.
• Unclear or unsupported fiduciary fee claims.

Helpful Hints — Practical checklist to prepare an annual or final accounting

• Start a transaction ledger on day one and update it regularly.
• Keep original receipts and organize them by category and date.
• Obtain formal appraisals for real estate and high‑value personal property.
• Keep separate estate bank accounts; do not mix personal and estate funds.
• Use the Michigan probate accounting forms when appropriate and contact the local probate clerk for local rules.
• Document service of the accounting to all required parties and retain certificates of service.
• If the estate owes taxes, consult a tax professional; estate tax or income tax issues may affect distributions.
• If large or unusual transactions occurred, seek court approval before or during the accounting to avoid disputes.
• When in doubt, consult a probate attorney — especially for contested accounts, complex assets, or allegations of misconduct.

Where to get forms and local requirements

Michigan’s probate forms and guidance are available from the State Court Administrative Office at: Michigan Courts — Probate Forms. For statutory authority and detailed law, search the Michigan Legislature’s website for Chapter 700 (Estates & Protected Individuals Code): Michigan Legislature. Local probate courts may have local rules and preferred formats — contact the probate clerk in the county where the estate is administered.

Disclaimer: This content is informational only and is not legal advice. It does not create an attorney‑client relationship. For advice about a specific estate or accounting, consult a Michigan probate attorney.