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Short summary: In Vermont, a personal representative, executor, or administrator must prepare an accounting that shows the estate’s financial activity during the accounting period. Annual (interim) accountings show ongoing receipts, disbursements, and the current estate balance. A final accounting must show complete administration, all receipts and payments since appointment, the closing balance, and a proposed distribution. Both accountings require supporting documentary records (bank statements, invoices, receipts, inventories and appraisals, tax returns, sale papers, etc.). The probate court and interested persons may require originals or certified copies of key documents.

What an accounting must do

The accounting must present an accurate, chronological, and itemized financial record for the period covered. It should:

• Identify the fiduciary and the estate (court caption, file number, estate name).
• State the accounting period (start and end dates).
• Show the opening balance at the start of the period (or at appointment for the first account).
• List all receipts (sources, dates, and amounts) with supporting documentation.
• List all disbursements (payees, dates, purposes, and amounts) with supporting documentation.
• Show the ending cash balance and a schedule of remaining estate assets.
• If final, propose a distribution and show authority for the distributions.
• Include a verification (signed statement) by the fiduciary attesting to the accuracy of the account and an affidavit of service to interested persons where required.

Common documents and records you should attach or have ready

Attach or be ready to present the following documents to support the numbers in both annual and final accountings:

• Inventory of estate assets (with dates and values). For Vermont statutory guidance, see Title 14 of the Vermont statutes: https://legislature.vermont.gov/statutes/title/14.
• Appraisals or market valuations for real property, vehicles, business interests, or other non‑cash assets sold or reported at a value other than cost.
• Bank statements for all estate accounts covering the accounting period.
• Cancelled checks, check register, and deposit slips supporting every disbursement and deposit.
• Invoices, receipts, and paid bills (funeral expenses, medical bills, creditor payments).
• Receipts for asset sales (real estate closing statements, bills of sale, broker statements).
• Brokerage and investment account statements showing transactions and balances.
• Copies of estate and fiduciary income tax returns (federal Form 1041, any Vermont fiduciary returns) and any estate tax returns required by IRS or state tax authorities.
• Records showing creditor claims allowed, disputed, or paid (claim forms, court orders, releases).
• Documentation of distributions to beneficiaries (signed receipts, canceled checks, or wire confirmations).
• Any court-approved orders authorizing extraordinary transactions (sales of real property, borrowing, compromise of claims, attorney fees).
• A proposed schedule of distribution (final accounting) that lists beneficiaries, amounts to be paid or transferred, and the legal basis for distribution.

Differences between annual (interim) and final accountings

While both accountings follow the same general structure, expect the following differences:

• Scope: Annual (or interim) accountings cover a defined period and show continuing administration. They keep beneficiaries informed and permit court supervision during longer administrations.
• Detail level: Annual accounts should still include receipts and disbursements, but a final account must account for the entire administration from appointment to closing and reconcile every asset and liability.
• Supporting proof: A final accounting typically requires more documentary proof—original closing documents for real estate sales, final tax returns, and proof that all creditor notices and payments were handled.
• Final actions: The final account asks the court to allow the account, approve commissions/fees, authorize distributions, and discharge the fiduciary once distributions are completed.

Procedure tips and court expectations in Vermont

• Follow local probate forms and filing procedures. Vermont’s probate courts and clerks expect accountings in a clear, standard format and may provide local forms or instructions.
• Service and notice: File and serve the account on interested persons as required. The probate court will require notice to beneficiaries and creditors before approving accounts and distributions.
• Authentication: Keep originals available. The court or opposing parties may request originals or certified copies of bank statements, canceled checks, deeds, and closing statements.
• Recordkeeping: Maintain a running estate ledger or accounting spreadsheet that ties each bank transaction to a receipt or voucher. This makes both annual filings and the final account easier and less costly.

What the court will look for when approving an account

• Completeness: The account should show every receipt and payment during the period (and for final accounts, for the entire administration).
• Authorization: Payments must be authorized by statute, the will, a creditor claim allowance, or a court order.
• Reasonableness: Fees and expenses must be reasonable; extraordinary fees typically need court approval.
• Distribution authority: The court will verify that proposed distributions follow the will or Vermont intestacy rules (see Vermont statutes, Title 14: https://legislature.vermont.gov/statutes/title/14).

Examples of typical entries in an accounting

• Opening balance: cash on hand in estate checking account as of appointment date (supported by bank statement).
• Receipts: Social Security benefits, pension checks, sale proceeds from house (attach closing statement), dividends (attach brokerage statements), life insurance proceeds received by estate (attach insurer’s proof of payment).
• Disbursements: funeral home invoice (attach paid invoice), mortgage payoff (attach payoff letter and cancelled check), attorney fees (attach fee agreement and voucher), caregiver payments (attach invoices and cancelled checks).
• Ending balance: reconciled cash balance with bank statement and schedule of remaining assets (real property, vehicles, personal property).

Practical checklist before filing an account

1. Reconcile estate bank accounts to the ledger for the period.
2. Collect and attach supporting documents for every material entry.
3. Prepare or update the inventory and attach appraisals for non‑cash assets.
4. Confirm creditor notices were given and claims addressed.
5. Prepare a proposed distribution (final account) and any required receipts from beneficiaries.
6. Sign and notarize fiduciary verification and file required court forms; serve interested persons as required by the probate court.

Where to find Vermont rules and forms

Vermont’s probate statutes and related rules are in Title 14 of the Vermont Statutes: https://legislature.vermont.gov/statutes/title/14. For local probate forms and court contact information, visit the Vermont Judiciary website and the probate division page: https://www.vermontjudiciary.org/. The probate clerk can confirm local filing practices and necessary forms.

Disclaimer

This information is educational only and is not legal advice. It describes common Vermont practice and documents commonly used in probate accountings but does not replace an attorney’s review. For advice about a specific estate or to prepare an accounting for the probate court, consult a Vermont probate attorney or the probate clerk for your court.