Detailed Answer
Short answer: For both annual and final probate accountings in Nebraska, a personal representative (executor/administrator) must prepare and file a verified written accounting that shows the estate’s beginning balance, all receipts and disbursements during the account period, the ending balance, and a clear schedule of assets, liabilities, and proposed distributions. The accounting should be supported by documentary backup (bank statements, canceled checks, receipts, invoices, tax returns, and appraisals) so the court and interested persons can verify transactions.
This article explains what those statements and supporting documents typically include and how they are used under Nebraska probate practice. This is educational information only and is not legal advice.
What Nebraska law controls accountings?
The Nebraska Probate Code and court rules govern probate accountings. State law sets general requirements about filing accountings, notice to interested persons, and the court’s review and allowance of accounts. See Nebraska Probate Code (Chapter 30) for statutory guidance: Neb. Rev. Stat. Chapter 30 (Probate).
Core documents required in an annual or final accounting
The exact documents the court will want can vary by county and by judge. Below are the core statements and records you should have ready to file and to provide to beneficiaries and the court:
- Verified written accounting / account statement: A formal narrative and schedule that shows the estate’s financial activity for the accounting period. It typically includes sections for the opening balance, itemized receipts, itemized disbursements, gains/losses on sales, taxes paid, fees charged (attorney and fiduciary), and the closing balance.
- Detailed asset schedule: A list of all estate assets at the beginning and at the end of the period, showing current values and locations (bank name and account numbers truncated for privacy). For final accountings this includes a complete distribution schedule identifying who receives each asset or amount.
- Inventory and appraisement: If the court required an initial inventory, include the filed inventory and any amended inventories showing valuations. The initial inventory supports the opening balances in later accountings.
- Bank statements and investment statements: Complete statements for estate bank accounts, brokerage accounts, and other custodial accounts covering the accounting period. The court often wants consecutive statements that match receipts and disbursements in the accounting.
- Copies of canceled checks and a check register or ledger: Copies or images of checks (or an electronic check register) that correspond to the disbursements itemized in the accounting. This helps verify payments to creditors, distributions to beneficiaries, fees, and other expenses.
- Receipts, invoices, and vouchers: Receipts for payments made (funeral, medical, tax payments, creditor claims paid), invoices for services (attorney fees, appraisal fees, funeral bills), and vouchers or bills showing why the estate was charged.
- Sales documentation: If the estate sold real estate, vehicles, or significant personal property, include contracts, closing statements, bills of sale, and deposit/closing disbursement sheets showing sales proceeds and costs of sale.
- Creditor claim records: Proof of notices to creditors, filed claims, and records showing how and when claims were paid, allowed, or disallowed.
- Tax returns and tax payment evidence: Federal and state income tax returns for the decedent for relevant years, estate income tax returns (if any), Nebraska inheritance or estate tax filings (if required), and proof of payments of taxes.
- Fee statements and approvals: Itemized attorney fee statements and fiduciary compensation calculations. If the court must approve fees, include the statements and any proposed orders approving fees.
- Proposed orders and distribution documents (final accounting): For final accountings, include a proposed order of distribution, receipts or releases from beneficiaries upon distribution, and a petition or affidavit requesting final settlement and discharge of the personal representative.
How the documents should be submitted
- File the accounting and supporting documents with the probate court clerk in the county where the estate is pending.
- Serve a copy of the accounting and notice of the filing or hearing on all interested persons (beneficiaries, heirs, creditors where required) according to the courthouse procedures. The court will usually require proof of service.
- Keep organized originals and indexed copies. Counsel and the court will expect vouchers to be easy to match to line items in the accounting.
Annual vs. Final differences
Annual accountings cover a single accounting period (often a calendar year or a year measured from appointment) and show continuing administration — receipts, ongoing expenses, asset values, and distributions during that period. Final accountings cover the entire administration since appointment to closing. In a final accounting you should provide:
- a full historical asset schedule from appointment to closing;
- a final distribution schedule identifying each beneficiary and the specific assets or cash amounts they will receive;
- final tax clearances or evidence of tax filings if required; and
- proposed orders discharging the personal representative and closing the estate.
Common pitfalls to avoid
- Missing documentation: don’t file an accounting that lists expenses without attaching the matching receipts, invoices, or canceled checks.
- Unreconciled bank balances: make sure your beginning and ending balances match the estate account statements.
- Vague descriptions: explain ambiguous entries (e.g., “miscellaneous expense” should say what it paid for and include proof).
- Late filings or failures to notify: follow local rules for notice and timing. Interested persons have rights to review and object.
Where to find Nebraska probate forms and local requirements
Local county courts may provide probate forms and filing instructions. For statewide statutory guidance, consult the Nebraska Revised Statutes, Chapter 30: Neb. Rev. Stat. Chapter 30 (Probate). For court forms and county-specific filing rules, visit the Nebraska Judicial Branch forms page (probate/forms): Nebraska Judicial Branch – Forms and the local county court website where the estate is filed.
Practical steps to prepare an accounting
- Gather all bank and investment statements for the accounting period.
- Collect invoices, receipts, canceled checks, and sales/closing documents.
- Prepare a spreadsheet or ledger that lists beginning balances, all receipts (with source), and all disbursements (with payee and purpose).
- Prepare an asset schedule showing values at the start and end of the period and any transfers or sales.
- Draft the verified accounting narrative and attach supporting documents in a clear, indexed order.
- File with the court, serve interested persons, and be prepared to respond to questions or objections.
Helpful Hints
- Keep estate accounts separate from personal accounts. Never co-mingle funds.
- Number or tab supporting documents and reference those tabs in the accounting for quick verification by the court and beneficiaries.
- If you sell property, keep sale contracts and closing statements—the court will want to see proceeds and costs.
- Track fiduciary and attorney fees carefully and include calculations per Nebraska allowances; request court approval if required.
- Communicate regularly with beneficiaries: sharing interim statements can reduce objections later.
- If the estate has complicated investments, consider getting written valuations or appraisals to support asset values used in the accounting.
- When in doubt, consult a probate attorney or the county clerk about local filing practices and timing.
Disclaimer: This article provides general information about Nebraska probate accounting practices. It is not legal advice and does not create an attorney-client relationship. For advice about a specific estate, consult a licensed Nebraska attorney or contact the probate court clerk in the county where the estate is filed.