FAQ: What statements and financial documents are required for annual and final probate accountings in Maryland?

Short answer: In Maryland, both annual (interim) and final probate accountings should present a clear, chronological record of all estate receipts and disbursements, an inventory or schedule of assets with values, bank statements and cancelled checks (or equivalent electronic records), supporting invoices or bills, appraisal or valuation evidence, tax returns, a proposed distribution schedule, and a verified account signed by the personal representative. Courts or Registers of Wills may also require proof of notice to beneficiaries and documentation supporting fees, commissions, and bond information.

Detailed answer — what to include and why

This answer assumes a typical Maryland probate administration handled by a personal representative (executor or administrator) under Maryland probate procedures. It is a practical checklist explaining the documents and statements most commonly required for annual (interim) accountings and the final accounting you file to close an estate. This is general information and not legal advice.

Core goals of any accounting

• Show the court and beneficiaries exactly what the estate owned when administration began and what it owns now.
• Explain every amount that came into the estate (receipts) and every payment that left the estate (disbursements).
• Provide supporting evidence (bank records, invoices, appraisals) so the Register of Wills or court and interested persons can confirm accuracy.

Commonly required items for BOTH annual (interim) and final accountings

1. Verified account document: A formal, signed accounting form or document that lists opening balances, all receipts, all disbursements (usually by date), and the closing balance. This is often titled “Account of Personal Representative” or similar and must be verified (signed under oath).
2. Inventory or schedule of assets: A list showing each asset the estate held (bank accounts, investments, real estate, personal property) and the value used for the accounting period (opening and closing values when applicable).
3. Receipts and sources of funds: Documents showing money received by the estate — e.g., insurance proceeds, proceeds from sale of assets, dividends, rental income, refunds, final paychecks. Supporting documents: deposit slips, settlement statements, insurance correspondence.
4. Disbursement documentation: Canceled checks, bank statements showing withdrawals, electronic payment records, paid invoices, receipts for funeral expenses, creditor payments, court costs, and attorney/fiduciary fees.
5. Bank statements and reconciliations: Full bank statements for estate accounts covering the accounting period and reconciliations showing how the account balance in the accounting matches bank records.
6. Appraisals or valuation evidence: For non-cash assets (real estate, business interests, valuable personal property), provide appraisals, broker statements, or comparable sales used to establish value.
7. Tax returns and tax-related documents: Copies of any estate tax, fiduciary income tax, or final personal income tax returns filed for the decedent or estate during the accounting period, plus documentation of tax payments.
8. Fee and bond documentation: If you seek fiduciary commissions, attorney fees, or reimbursement, provide a computation and supporting time records or retainer agreements; show the estate bond (if any) and any surety information.
9. Proposed distribution schedule (especially for final accounting): An itemized plan showing who will receive what property or cash and how distributions were calculated.
10. Proof of service/notice to interested persons: Documentation that beneficiaries and creditors received required notices of the accounting and were given the opportunity to object or appear.

Additional items often needed for an annual (interim) accounting

• Statement of actions taken in administering estate during the year (e.g., sales, investments, rent collected).
• Interim inventory updates showing post-opening changes in value or new assets found.
• Detailed ledger or journal showing each transaction in chronological order for the accounting period (date, description, amount, running balance).
• Copies of checks or electronic payment confirmations covering major items paid during the period.

Additional items specifically for a final accounting

• Complete closing statement showing final receipts and disbursements and a zeroing out (or final small balance) of estate accounts.
• Evidence that outstanding claims and creditor notices have been resolved or allowed, including releases or court orders if creditors were paid or disallowed.
• Final inventory showing disposition of all assets (sold, distributed in kind, transferred to beneficiaries, or otherwise disposed).
• Confirmations of transfers to beneficiaries (e.g., copies of signed receipts or acceptance of distribution, deeds transferring real property).
• Final tax clearance or proof that tax obligations were satisfied (if applicable), or a certified statement that no federal or state estate tax was due.
• If closing by consent (short form) — written consent from all interested persons may allow a simplified closing with fewer supporting documents, but the Register or court still expects enough evidence to be satisfied.

Where Maryland law and procedure apply

Maryland probate and fiduciary duties are governed by Maryland statutes and court rules and administered locally through the Register of Wills and the Orphans’ Court or Circuit Court when required. For general guidance and forms, see the Maryland Register of Wills and the Maryland Courts’ probate resources:

• Maryland Register of Wills (mdcourts.gov) — for local Register offices, probate forms, and filing requirements.
• Maryland Code — Estates and Trusts Article — general statutory framework for estates and fiduciary duties.
• Maryland Rules (mdcourts.gov) — procedural rules that affect filings and court practice.

How to prepare an accounting that will pass review

1. Start a clear accounting ledger immediately when you qualify as personal representative. Record every transaction with date, description, and supporting document number.
2. Keep a separate estate bank account. Do not mix estate funds with personal funds.
3. Scan and organize supporting documents (bank statements, checks, invoices, appraisals) so you can attach them to your accounting or produce them on demand.
4. Provide beneficiaries with copies of the accounting and proof of service. Address any objections promptly or seek the court’s guidance.
5. Before filing a final account, ensure all creditor deadlines have run or that claims were resolved, and that final tax obligations are addressed.

Helpful hints

• Use a spreadsheet or estate accounting software to produce a readable, reconciled accounting that summarizes receipts, disbursements, and running balances.
• Attach a table of contents to your accounting packet listing every exhibit (bank statement, appraisal, paid invoice) so reviewers can find support quickly.
• When selling estate property, keep closing statements and all communications with brokers or buyers; these documents explain sale proceeds and costs.
• If a beneficiary questions a transaction, be ready with the original invoice, canceled check, or approval showing the payment was proper.
• Consider getting professional appraisals for high-value items or real estate to avoid disputes at closing.
• If the estate holds investments, include brokerage statements and show how you determined values on the accounting dates.
• Speak with the Register of Wills in the county where you file — local practice and required forms can vary.

Where to get forms and local instructions: Contact the Register of Wills in the county where probate is opened. The Register’s office posts local instructions and sometimes local accounting forms. See the statewide Register of Wills page at https://www.mdcourts.gov/register.

When you should consult an attorney or accountant

Consider professional help if:

• The estate includes complex assets (business interests, foreign accounts, closely held stock).
• Beneficiaries dispute accountings or distributions.
• You face potential personal liability (allegations of mismanagement, creditor litigation, or tax audits).
• The estate must file federal or Maryland estate tax returns.

Disclaimer: This information is educational only and does not constitute legal advice. It summarizes common Maryland probate accounting practices and points you should consider. Rules and forms change, and local practices vary. Consult a Maryland probate attorney or the Register of Wills for advice tailored to your situation.