Detailed Answer: What statements and financial documents are required for annual and final probate accountings in North Dakota?

Short answer: A personal representative (executor or administrator) in North Dakota must prepare a clear, itemized accounting that shows what the estate owned at the start, all money and property received and paid during the accounting period, the current value of assets on hand, debts paid or remaining, fees and expenses charged against the estate, and proposed distributions. Supporting financial documents typically include an inventory and appraisement, bank statements, cancelled checks or electronic payment records, ledgers of receipts and disbursements, copies of paid claims, tax returns, and receipts proving distribution to heirs or beneficiaries. The court uses these documents to review and allow (approve) annual and final accounts.

North Dakota legal framework (where to check the law)

The rules for fiduciary duties, accounting, inventories, claims, and closing estates are found in the North Dakota Century Code (NDCC), Title 30.1 (probate and estate administration). For statutory language and specific filing requirements, consult the NDCC on the Legislative Branch website: https://www.legis.nd.gov/cencode/t30-1. If you need forms or local practice guidelines, check the North Dakota court clerk in the county handling the estate or the statewide court website.

What an annual accounting should include (core elements)

An annual accounting (when required by the court or when the estate remains open past one year) should include:

• Caption and identification: Court name, probate file number, estate name, name of the personal representative, and accounting period dates.
• Beginning inventory/value: A statement of the estate’s assets and values at the start of the accounting period (often the previously filed inventory or the ending inventory from the prior accounting).
• Receipts: Itemized list of money and property the estate received during the period (rents, sale proceeds, dividends, retirement account distributions, refunds, etc.).
• Disbursements: Itemized list of payments from estate funds (administration expenses, funeral costs, taxes, insurance, loan payments, claim payments, repairs, legal and personal representative fees, and distributions to beneficiaries).
• Gains and losses: Any realized gains or losses from sales or changes in value that affected cash or asset values.
• Ending inventory/value: Current market values of assets remaining in the estate at the end of the accounting period, including description and location of assets.
• Summary schedule: A concise reconciliation showing beginning value + receipts – disbursements = ending value.
• Requests for approval: A petition or prayer asking the court to allow (approve) the account and either continue administration or permit distribution, plus any requested allowances for fees or reimbursements.

Documents and supporting records to attach or have available

Courts expect reliable supporting documents. Typical supporting documentation includes:

• Inventory and appraisement (the initial estate inventory filed with the court).
• Bank account statements and reconciliations for each estate account covering the accounting period.
• Paid invoices and receipts for funeral expenses, repairs, insurance, utilities, and other administration costs.
• Cancelled checks or electronic payment records supporting disbursements.
• Deposit records, deposit slips, and check registers showing receipts.
• Brokerage or investment statements and transaction confirmations showing sales or transfers of securities.
• Copies of claims filed by creditors and proof of payment or rejection of those claims.
• Estate and income tax returns filed for the decedent and the estate (federal Form 1040, estate Form 706 if required, and any North Dakota returns), plus supporting schedules.
• Proof of notice to beneficiaries (mailing receipts, certified mail, or signed receipts) and any beneficiary waivers or consents.
• Receipts signed by beneficiaries acknowledging distributions.
• Any court orders previously entered that affect accounting (orders for sale, approval of intermediate accounts, allowance of fees, bond reductions).

What a final accounting must show (closing the estate)

The final accounting contains everything in an annual accounting plus the final steps and evidence that the estate is ready to close. Specifically, a final accounting should:

• Show full reconciliation from opening inventory through all transactions to zero out the estate (or to show the remaining assets being transferred to named beneficiaries).
• Document payment or proper handling of all allowed creditor claims and administration expenses.
• Show payment or allowance of all taxes and provide copies of estate tax filings and receipts of payment.
• Include a proposed distribution schedule and receipts signed by beneficiaries when assets are distributed.
• Include any petitions for discharge of the personal representative and for final decree closing the estate.

Common practical requirements and tips under North Dakota practice

Courts look for clarity, accuracy, and supporting proof. Common issues that delay approval include:

• Missing bank statements or unexplained gaps in the ledger.
• Payments made without supporting invoices or vendor documentation.
• Failure to show that all creditor claims were addressed or that adequate notice was given to creditors.
• Unapproved personal representative or attorney fees without a petition to the court for allowance.
• Distributions made before court approval or before all taxes and claims are resolved.

How to prepare a court-ready accounting — step-by-step

1. Gather the opening inventory previously filed with the court.
2. Create or update a receipts-and-disbursements ledger for the accounting period showing date, description, source/payee, and amount.
3. Collect bank and investment statements and reconcile them to the ledger.
4. Assemble invoices, cancelled checks, proof of claim payments, and vendor receipts.
5. Prepare a concise summary and reconciliation that the court can review quickly (beginning balance, receipts, disbursements, ending balance).
6. Attach required supporting documents and a proposed order for the judge to sign approving the account.
7. File the accounting with the probate court; serve beneficiaries and parties as required by court rules and NDCC.

Helpful Hints

• Maintain an estate-only bank account immediately after appointment to avoid commingling funds.
• Keep original invoices and cancelled checks; courts rely on originals when there is a dispute.
• Label all documents by category and date; produce a short summary index for the judge and the beneficiaries.
• When in doubt, document the reason for an expenditure (e.g., emergency repair, court-ordered sale expense).
• Plan for taxes: gather any federal or state estate and income tax filings and proof of payments before final distribution.
• Obtain signed receipts from beneficiaries at the time of distribution to avoid later disputes.
• If the estate has complex assets (business interests, retirement plans, property outside North Dakota), consider professional valuation and tax advice.

When to consult an attorney

If accounts involve contested claims, complex asset valuation, potential creditor disputes, tax issues, or if beneficiaries object to the accounting, speak with a probate attorney. An attorney can help prepare a court-ready accounting, file the necessary petitions, and represent the personal representative at hearings.

Disclaimer

This information is educational and general in nature and does not constitute legal advice. It explains common practice under North Dakota law but may not reflect all local court rules or recent changes in statute or procedure. For advice about a particular estate or to prepare filings, consult a licensed North Dakota attorney or the probate clerk in the county handling the estate.