Detailed answer — how to document and file receipts for payments to heirs and service providers (Louisiana)

When you administer a Louisiana succession (estate), complete, organized proof of every payment is essential. Good documentation protects the administrator (or executor), avoids disputes among heirs, and makes a court accounting easier if required. Below is a straightforward, step-by-step approach you can follow.

1. Understand the basic legal context

In Louisiana, succession administration generally requires an administrator (or executor) to collect assets, pay debts and expenses, and distribute what remains to heirs. Courts and heirs can ask for an accounting that explains what was paid and why. For state-level resources and applicable succession rules, see the Louisiana Legislature search for “succession” (laws and code sections): https://legis.la.gov/Legis/LawSearch.aspx?query=succession. For federal reporting and tax issues related to payments to service providers, see the IRS guidance on Form 1099-NEC and EINs: https://www.irs.gov/forms-pubs/about-form-1099-nec and https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.

2. Use a consistent voucher/receipt system

Create a simple, numbered voucher or payment worksheet for every disbursement. Each voucher should include:

• Voucher number (unique, sequential)
• Date of payment
• Payee name and contact information
• Amount paid (numeric and written)
• Purpose of payment (e.g., funeral expense, attorney fee, repairs, homestead utility, distribution to heir)
• Method of payment (check number, electronic transfer, cash)
• Supporting documents attached (invoice, bill, canceled check, bank statement, receipt)
• Signature line for payee acknowledging receipt—include printed name and relationship (heir, vendor, etc.)

3. Obtain and keep original supporting documents

Attach one or more of the following to each voucher:

• Vendor invoice or itemized bill that explains what goods/services were provided
• Signed receipt from the payee (a short written acknowledgment works for heirs; vendors usually provide invoices/receipts)
• Cancelled check or bank statement showing the cleared payment
• Credit card receipt plus merchant statement when applicable
• Contract or engagement letter (for professional services such as repair contractors, accountants, attorneys)

4. For distributions to heirs: written acknowledgments and releases

When you make a cash or property distribution to an heir, get a signed acknowledgement. The acknowledgement should identify the succession, specify the item or cash amount distributed, state that the heir received it, and include the heir’s printed name, signature, and date. In some successions, especially when heirs sign to accept an unequal distribution, consider a simple release language acknowledging receipt of the amount or property and confirming no further claim for that distribution.

5. Vendor & contractor safeguards

For significant repair or contractor work:

• Get written bids and a written contract that specifies scope, price, payment schedule, and lien waiver terms.
• Require a final signed invoice and a lien waiver upon final payment to avoid future mechanic’s lien claims against estate property.
• Keep all change orders and receipts.

6. Tax and reporting obligations

If the estate pays a non-employee service provider $600 or more in a calendar year, you may need to issue Form 1099-NEC. Keep W-9s from vendors so you have accurate taxpayer identification information. For the estate itself, get an EIN from the IRS and use that EIN for estate bank accounts and reporting: IRS — Apply for an EIN. Louisiana does not have a state estate tax, but federal estate tax and the estate’s income tax obligations may still apply—consult a tax professional when in doubt.

7. Court accountings and filing receipts

If the succession is supervised by the court (a formal administration) or if any interested party requests a formal accounting, you will file an accounting with the succession court. That accounting should include:

• A summary schedule of receipts and disbursements
• Copies of all vouchers, invoices, canceled checks, and signed acknowledgements supporting each disbursement
• Bank statements and reconciliation showing beginning and ending balances

File the accounting in the parish where the decedent was domiciled and serve copies to heirs and other interested parties per the court’s procedural rules. Check local succession rules or ask the clerk of court about required formats and any filing fees. For Louisiana statutes and rules governing succession procedures, see the Louisiana Legislature search for succession statutes: https://legis.la.gov/Legis/LawSearch.aspx?query=succession.

8. Records retention

Keep estate financial records for several years after final distribution. For tax purposes, many professionals recommend keeping records for at least seven years; retain tax returns, accounts, receipts, and cancelled checks. If you are an administrator, keep copies after you are discharged—creditors or heirs may still raise claims later.

9. Sample receipt language you can use

Use clear, simple language. For an heir’s cash distribution, a receipt might read:

“Receipt: I, [Name], hereby acknowledge receipt of $[amount] from the succession of [Decedent], administered in [Parish] Parish, Louisiana, as a distribution of my share. Date: ____. Signature: ____. Printed name: ____. Relationship: [heir/legatee].”

For vendors, attach the vendor’s invoice and ask the vendor to sign a paid receipt or provide a stamped invoice that says “PAID” and shows payment method and date.

10. When to consult an attorney

When distributions are contested, when there are large or unusual transactions, when liens or claims exist, or when the succession is complex (business interests, out-of-state assets, tax issues), consult a Louisiana succession attorney. An attorney can prepare formal accountings, draft releases, and advise how to present receipts and records to the court so you get final discharge as administrator without future liability.

Helpful Hints — quick checklist for administrators

• Create a numbered voucher for every disbursement and attach supporting documents.
• Get signed receipts from heirs for distributions; consider simple releases for final distributions.
• Collect W-9s from vendors, use an EIN for the estate, and track payments that may require a Form 1099.
• For contractors, insist on written contracts and final lien waivers before final payment.
• Keep originals of canceled checks and bank statements showing cleared payments.
• File accountings and attach supporting receipts if the court requires a formal accounting; serve heirs and interested parties per court rules.
• Keep estate records for at least seven years and longer if litigation or tax issues are possible.
• If unsure, seek a Louisiana succession attorney early — good documentation makes any lawyer’s job easier and cheaper.

Relevant resources: Louisiana Legislature — search “succession”: https://legis.la.gov/Legis/LawSearch.aspx?query=succession; IRS Form 1099/1099-NEC guidance: https://www.irs.gov/forms-pubs/about-form-1099-nec.

Disclaimer: This information is educational and does not create an attorney-client relationship. It is not legal advice. For guidance specific to a particular succession in Louisiana, consult a licensed Louisiana attorney.