Detailed Answer

This answer explains, in plain language, the typical statements and financial documents a personal representative (executor/administrator) should gather and file for annual (periodic) and final probate accountings under Arizona law. This is educational information and not legal advice. For the governing statutory framework, see Arizona’s Probate Code (Title 14, Arizona Revised Statutes): https://www.azleg.gov/arstitle/14/ and the Arizona Courts probate resources: https://www.azcourts.gov/Probate.

Overview — two kinds of accountings

Most estates end with a final accounting before distribution and closing. Some matters also require or permit interim or annual accountings — either because the court orders them, the estate is supervised by the court, or an interested person (heir/beneficiary) demands an accounting. Whether the estate is supervised or unsupervised affects when and how accountings are filed. See Arizona probate procedures and Title 14 for court supervision rules: https://www.azleg.gov/arstitle/14/ and Arizona Courts guidance at https://www.azcourts.gov/Probate.

Core contents required in both annual/interim and final accountings

Accountings should present a clear, chronological, and verifiable financial picture. At minimum, an accounting should include:

• Caption and verification: Court case caption, name of the fiduciary, statement that the accounting is sworn/verified (signed under oath by the personal representative).
• Accounting period: Start and end dates covered by the accounting (for final accounting the entire administration period).
• Opening balance: Value of estate assets at the start of the period (or at appointment for a final accounting).
• Receipts/credits: Every source of money or property received during the period (e.g., rents, dividends, sale proceeds, proceeds from asset transfers, tax refunds). Include dates, payer, amounts, and supporting documents.
• Disbursements/debits: All payments and distributions made (e.g., funeral expenses, creditor payments, taxes, court costs, attorney/fiduciary fees, repairs, insurance). List dates, payee names, amounts, and purposes.
• Asset schedule at period end: Inventory of cash, bank accounts, securities, real property (with valuations), business interests, personal property, and any outstanding receivables or claims against the estate.
• Liabilities and claims: Itemized list of outstanding debts, filed creditor claims and amounts paid or rejected, and any contingent liabilities.
• Proposed distributions (final accounting only): A detailed plan showing who will receive what (heirs, beneficiaries, charities), calculation of each distribution, and any withheld reserves for claims or taxes.
• Fee and compensation detail: Statement and calculation of requested fiduciary and attorney fees and reimbursements, with supporting time records or fee schedules.
• Supporting exhibits: Bank statements, brokerage statements, cancelled checks, receipts, sale contracts, closing statements, invoices, tax returns, and appraisals used to value assets.

Documents to attach (examples)

Attach or have ready to support every material line item in the accounting:

• Initial inventory and appraisement (if one was filed).
• Monthly/quarterly bank statements covering the accounting period.
• Brokerage and investment account statements (showing beginning/ending balances and transactions).
• Cancelled checks or paid invoices for major disbursements (funeral, taxes, creditor payments, repairs, professional fees).
• Closing statements for real estate sales (HUD-1/closing disclosure) and bills of sale for other major asset sales.
• Appraisals or valuations for real property, antiques, or other non-liquid assets used to support end-of-period values.
• Creditor claim filings and resolutions (allowances, rejections, settlements).
• Estate, income, and fiduciary tax returns filed during administration; notices or correspondence with tax authorities.
• Receipts for distributions to beneficiaries and proof of delivery where applicable.

Form, verification and filing

Accountings are typically filed with the probate court in the county where the estate is being administered. The accounting must be verified by the fiduciary (signed under penalty of perjury) and may be supported by declarations from accountants, appraisers, or attorneys where appropriate. The court will set a hearing if anyone objects; otherwise, the court may approve the accounting and authorize distributions.

When an annual accounting is required or helpful

Arizona courts may require periodic accounting for supervised administrations. Even in unsupervised estates, beneficiaries or interested persons can demand an accounting or ask the court to require one. If the estate is complex, contains ongoing business interests, or will remain open for a long time, periodic (annual or other periodic) accounting helps maintain transparency and reduces disputes.

Common valuation and tax considerations

Valuations must be supported. For publicly traded assets, use broker statements showing market value on the valuation date. For real estate and unique assets, obtain written appraisals. Keep copies of all estate tax filings and correspondence — these affect the final accounting and distributions.

Practical timeline for a final accounting

1. Prepare final inventory and reconcile all bank/brokerage accounts to closing date.
2. Pay allowed debts, taxes and set reasonable reserves for pending claims.
3. Prepare detailed accounting showing every receipt and disbursement during administration.
4. Attach supporting documentation and a proposed distribution schedule.
5. File the final accounting with the court, give notice to beneficiaries and creditors per court rules, and attend the hearing if required.

Where to look in Arizona law and court resources

Arizona’s Probate Code (Title 14, A.R.S.) sets the statutory framework for administration and the court’s authority. See Title 14 on the Arizona Legislature site: https://www.azleg.gov/arstitle/14/ and visit Arizona Courts’ probate resource pages for forms and local rules: https://www.azcourts.gov/Probate.

Note: Specific wording, required forms, local court rules, and filing procedures vary by county and by whether the estate is supervised. Check the local county probate court’s website or speak with a probate attorney where the estate is being administered.

Helpful Hints

• Keep a separate bank account for the estate and keep originals of all receipts, cancelled checks and statements.
• Create a simple spreadsheet of receipts and payments contemporaneously; it makes preparing the accounting much easier later.
• Label and date every supporting document you attach to the accounting; cross-reference each attachment to the accounting line-item.
• If the estate holds a business interest, get professional valuations and consult a tax advisor early.
• Obtain written appraisals for unusual or high-value personal property and real estate to support valuations in the accounting.
• Keep beneficiaries informed to reduce surprises and the risk of objections at accounting hearings.
• When in doubt about fee calculations or tax consequences, consult a probate attorney or accountant — fee disputes and tax errors can delay closing the estate.
• File timely notices and follow local county probate rules for service and filing — failure to provide proper notice can void approvals later.
• Retain estate records for several years after closing (many professionals recommend 3–7 years) in case of later audits or disputes.