Detailed Answer

When you act for a decedent’s estate in Missouri as an executor, administrator, or personal representative, you act as a fiduciary. That role requires accurate, verifiable records of every estate receipt and payment so you can justify distributions, defend against challenges, and satisfy the probate court’s accounting requirements under Missouri’s probate laws (RSMo Chapter 474 — Decedents’ Estates).

Core steps to properly document payments

1. Open and use an estate bank account. Keep all estate funds separate from personal accounts. Use the estate account for all deposits and disbursements so bank statements match the ledger.
2. Keep or obtain source documents for every payment and receipt. For each disbursement, keep one or more of these: an original invoice, a signed receipt, a paid invoice marked “paid,” a cancelled check or bank statement showing the payment, a vendor or contractor final statement, or an electronic payment confirmation.
3. Use written receipts for distributions to heirs. When you distribute cash or property to an heir, obtain a written receipt signed by the heir that identifies the estate, the date, the amount or description of property, and the reason for the distribution (e.g., specific bequest, intestate share, interim distribution). If the distribution settles an obligation, note that on the receipt.
4. Collect invoices, contracts, and lien waivers from service providers. For contractors, repair vendors, accountants, and other providers, keep the contract or engagement letter, itemized invoices, proof of payment, and, when applicable, a signed lien waiver from the contractor once paid to avoid later mechanic’s lien claims.
5. Record every transaction in an estate ledger. Maintain a chronological ledger (spreadsheet or accounting software) that lists date, payee/receiver, check or transaction number, purpose, receipt/invoice reference, and running balance. Cross-reference each ledger entry to the scanned or physical supporting document.
6. Prepare and file required probate accountings and inventories. Missouri law requires filing inventories and accountings with the probate court in many administrations. When you prepare those filings, attach or retain the supporting receipts and invoices so you can provide them to the court or beneficiaries on request. See RSMo Chapter 474 for statutory filing requirements.
7. Obtain signed releases when appropriate. When you make a full distribution to an heir or settle a claim, consider having the recipient sign a release acknowledging receipt and waiving further claims regarding that specific distribution. Be cautious: releases should be clear and limited to the specific payment or claim, and you should consult a lawyer before using broad releases.
8. Retain originals and create backups. Store original receipts and supporting documents in a safe place and scan everything to create a secure, backed-up digital copy. Keep electronic files organized and named consistently.

How to present receipts and accounting to the court and beneficiaries

When the probate court requests an accounting or when beneficiaries request documentation, provide a clear package that ties ledger entries to supporting documents:

• Summary ledger or accounting showing totals by category (assets, income, fees, distributions).
• Numbered or bookmarked PDF of supporting documents (invoices, receipts, cancelled checks) that match the ledger line items.
• Explanatory notes for any unusual or one-time expenses (estate taxes, appraisal fees, emergency repairs).

Special situations

Below are common issues and how to handle them:

• Payments to heirs in goods or property: Prepare a written receipt that describes the item, states an agreed value (if necessary), and confirms the heir’s acceptance. If the property has substantial value, consider obtaining an appraisal to document fair market value.
• Cash payments: Avoid cash whenever possible. If you must pay cash, require a signed, dated, and itemized receipt from the payee and log the payment with a corresponding bank withdrawal showing the expense.
• Payments to vendors who may file liens: Require contracts and lien waivers. Keep lien waivers after payment to reduce exposure to future claims.
• Disputed charges: Document attempts to resolve the dispute and hold disputed amounts in reserve until resolved or ordered by the court.

Tax and reporting considerations

Estate payments and distributions can affect tax reporting for the estate and for recipients. For example, the estate may need to report payments to non-corporate contractors (federal reporting) and keep records for estate tax or income tax returns. Keep invoices, W-9s from vendors, and copies of any tax filings. Consult a tax advisor for specific obligations.

Helpful Hints

• Create a numbered receipt system: assign each receipt and invoice a unique ID and use that ID in the ledger.
• Use checks or bank transfers for major disbursements for an automatic paper trail; avoid cash where possible.
• Scan documents immediately; store scans in cloud backup with encryption if possible.
• Ask heirs to sign a simple release when they receive a distribution; have an attorney review a standard release form before widespread use.
• Require written contracts and written change-orders for contractors; collect lien waivers after full payment.
• Keep a separate folder for “court filings” that includes inventory, accountings, petitions, and receipts attached to those filings.
• If a beneficiary requests copies of receipts, provide them digitally and keep a record of what you provided and when.
• When in doubt about whether a document is necessary, preserve it—more documentation helps resolve later questions.

Sample receipt (basic)

Estate of [Decedent Name]
Estate case no.: [Probate Case #]
Date: [MM/DD/YYYY]
Received from: [Name of Estate Representative]
Received by: [Payee/Heir Name]
Amount or item: [Dollar amount or item description]
Purpose: [e.g., interim distribution, payment for services, reimbursement]
Signature of payee: _____________________   Date: __________
Reference: [Check # / Invoice # / Receipt ID]