What is a probate accounting in Iowa?

A probate accounting documents all financial activity of an estate while a personal representative administers it. It shows what the estate started with, what it collected, what it paid, what remains, and how the representative proposes to distribute remaining assets. Iowa probate procedure for administration is governed by Iowa Code chapter 633. See the Iowa Code for general rules on administration, inventories, and settlement: Iowa Code, chapter 633.

Core statements required for annual and interim accountings

When a court orders an annual or interim accounting, or when you file one to keep beneficiaries informed, include clear, verified statements that show:

• Opening balance / inventory: A statement of the estate property at the start of the accounting period, usually the inventory filed with the court, listing assets and their values. If you update asset values for the accounting period, explain how you valued them (appraisal, market value, bank balances).
• Receipts (money in): A chronological or categorized statement of all funds and property received during the period (for example, proceeds from sale of property, retirement account distributions, rents collected, interest and dividends, insurance proceeds, refunds).
• Disbursements (money out): A detailed statement of all payments made by the estate during the period (debts paid, administration expenses, funeral expenses, taxes, attorney and fiduciary fees, mortgages, repairs, distributions to beneficiaries).
• Assets on hand / closing balance: A statement showing the estate’s assets at the end of the accounting period and their values (bank balances, investments, real property net of encumbrances, personal property). Reconcile totals so Opening + Receipts – Disbursements = Closing balance.
• Proposed distributions: For annual accountings that propose distribution now or at final accounting, include a schedule that shows who will receive what and the legal basis (will provisions or intestacy).
• Statement of fees and commissions: Show any charges to the estate for attorney fees, fiduciary compensation, accountants, appraisers, and other professional fees. Explain basis for fees (court approval, statutory fee schedule, or reasonableness).

Each statement should be verified by the personal representative’s signature under oath or affirmation, as required by Iowa procedure.

Documents to attach as supporting financial evidence

Attach or make available original or copies of documents that substantiate the numbers in the statements. Common supporting documents include:

• Inventory of estate assets filed with the court (initial and any amended inventories).
• Bank statements and reconciliations (beginning and ending balances and monthly statements covering the accounting period).
• Canceled checks, electronic payment records, and receipts for estate expenses (bills paid, funeral expenses, repairs, mortgages).
• Receipts for funds received (insurance checks, sale proceeds closing statements, pension/retirement distributions).
• Closing statements (HUD-1 or settlement statements) for real estate transactions.
• Appraisals or valuation statements for real property, businesses, or unique personal property (when values change or are disputed).
• Invoices and proof of payment for professional services (attorneys, accountants, appraisers).
• Tax returns filed for the decedent and for the estate (federal and Iowa state returns) covering the accounting period.
• Proof of notice and service to beneficiaries and known creditors (mailing receipts, certified mail return receipts, or filed proof of service).

What is required for a final accounting (settlement and closing)?

A final accounting provides a full settlement and asks the court to discharge the personal representative. In addition to the statements and supporting documents listed above, a typical final accounting must include:

• A clear reconciliation from opening inventory through all transactions to the final assets available for distribution.
• A complete list of all claims presented and the court’s handling of them (allowed, disallowed, paid, reserved).
• Documentation that all taxes (including final income tax returns and any estate or inheritance taxes, if applicable) were filed and paid or reserved for.
• A formal petition or report asking the court to approve the accounting, authorize distributions, and discharge the personal representative and sureties (if any).
• Proposed distribution orders or waivers signed by beneficiaries if they accept distributions without court hearing.

When the court approves the final account, it typically issues an order allowing fees, approving distributions, and discharging the personal representative. See Iowa Code chapter 633 for settlement and closing procedures: Iowa Code, chapter 633.

Filing, service, and timing in Iowa

Common procedural steps:

1. Prepare the accounting and compile supporting documents.
2. File the accounting and any petition with the clerk of the district court in the county where the probate estate is being administered. The court may require a specific form or format; check local court rules.
3. Serve the accounting and notice of hearing on interested persons (beneficiaries, heirs, and known creditors) according to Iowa procedure. Filing proof of service is usually required.
4. Attend any hearing the court schedules. The court will review the accounting, hear objections, and rule on fees and distributions.

Iowa law gives the court discretion to order accountings at intervals it finds appropriate, require a final accounting at closing, and require notice and service to interested parties. For public resources and probate forms, see the Iowa Judicial Branch: Iowa Judicial Branch.

Practical checklist: documents to gather before preparing an accounting

• Filed inventory and any amendments.
• All bank and brokerage statements covering the period.
• Canceled checks, electronic payment records, and receipts for major expenses.
• Sale or closing statements for transactions during the period.
• Appraisals or valuations used to set asset values.
• Invoices and proof of payment to professionals.
• Copies of decedent and estate tax returns and proof of payment or tax reserves.
• Copies of notices sent to beneficiaries and creditors and proof of service.
• Proposed distribution schedule and beneficiary contact information.

Common pitfalls to avoid

• Failing to attach supporting documents. The court expects documentation that backs each major entry.
• Not reconciling account totals. The court wants a clear mathematical reconciliation.
• Overlooking tax obligations. Unpaid or unresolved tax liabilities can delay final distribution.
• Insufficient notice to beneficiaries or creditors. Proper service is required before a court will approve distributions.
• Mixing personal and estate funds. Keep separate accounts and document transfers into/out of the estate.

Helpful Hints

• Keep a dedicated estate checking account and save monthly statements.
• Use a simple ledger or spreadsheet that lists every receipt and disbursement with dates and supporting reference numbers.
• When in doubt about valuation, obtain a written appraisal and include it with the accounting.
• Keep originals of key documents; file copies with the court and provide copies to beneficiaries on request.
• Draft the accounting so a non‑financial person can follow the flow from opening inventory to final distribution.
• File a petition for settlement and discharge with the accounting when you are ready to close the estate; follow local court form requirements.
• If beneficiaries agree to distributions, get written releases or waivers and file them with the court to speed approval.
• Consult an attorney if the estate has complex assets (business interests, foreign assets, contested claims, or unresolved tax issues).