Detailed Answer — What court accountings must show and which documents to attach

This section explains, in plain language, the financial statements and supporting documents commonly required when a personal representative, executor, guardian, conservator, or trustee files an accounting in South Carolina probate court. It covers both recurring (annual) accountings and the final accounting needed to close an estate or guardianship. This is educational information only and is not legal advice.

Legal framework (where to look)

South Carolina’s probate, fiduciary, guardianship, and trust laws (Title 62) govern fiduciary duties, inventories, and accountings. See South Carolina Code — Title 62 (Wills, Trusts, and Fiduciaries): https://www.scstatehouse.gov/code/t62.php. Local probate court clerks and the Court’s probate forms provide county-specific filing formats and any local rules.

Which accountings are typically required?

• Annual accountings: Often required for guardians, conservators, trustees, and sometimes for long-running estates when the court orders periodic reports. These summarize activity for the reporting year.
• Final accounting (closing account): Required when a fiduciary seeks discharge and approval of distributions so the court can close the estate, guardianship, or trust administration.

Core financial statements to prepare

Prepare these written statements, clearly labeled and dated, for either an annual or final accounting:

1. Caption and identifying information. Court name, case number, decedent/ward/trust name, fiduciary name, and reporting period.
2. Opening balance (as of the start of the accounting period). State the cash and asset total at the start of the period, supported by the prior court-accepted accounting or inventory.
3. Receipts and credits. A detailed, chronological schedule of money or property received during the period (examples: proceeds from sale of real estate, pension checks, dividends, rent, loan repayments, transfers into the estate/trust). Show dates, payors, and amounts.
4. Disbursements and debits. A detailed chronological schedule of payments made (examples: payments to creditors, funeral expenses, attorney and accountant fees, bond premiums, property maintenance, taxes). Include dates, payees, purpose, and amounts.
5. Asset schedule (current inventory and values). A list of remaining assets at the end of the accounting period with values and basis for valuation (market value, appraisal, sale price, bank balance). Identify each bank account, security, real property, vehicle, and significant personal property.
6. Liabilities and claims status. Show outstanding debts, allowed claims, and amounts paid or reserved for claims (or state that no claims remain).
7. Computation of net distributable estate (for final accounting). For a closing account, show the calculation that leads from gross estate to net distributable assets after debts, expenses, taxes, and fees.
8. Proposed distribution schedule (final account only). List each beneficiary or heir, the amount or property proposed for distribution, and how that amount was calculated (reference will or intestacy shares).
9. Certification and verification. A signed statement by the fiduciary (or attorney) under penalty of perjury or pursuant to the court’s required verification form stating that the accounting is true and correct.

Supporting documents to attach

Attach or be ready to provide originals or court-certified copies of the following to substantiate the numbered entries above:

• Most recent court-ordered inventory or initial inventory and any court-approved amendments.
• Bank statements for all fiduciary accounts covering the accounting period (opening and closing statements).
• Cancelled checks, check images, or electronic payment records tied to each disbursement line item.
• Receipts, invoices, and bills: funeral bills, contractor invoices for property repairs, medical bills paid by the estate/guardian, and other supporting invoices.
• Bills allowed or disallowed by the court (copies of claims filed and the court’s rulings on them).
• Appraisals or valuations for real property, closely held business interests, or valuable personal property used to support asset values; include the appraiser’s report.
• Settlement agreements, sale contracts, closing statements (HUD/ALTA) for real estate sales, and proceeds statements.
• Federal and South Carolina fiduciary income tax returns (Form 1041) and proof of payment of any taxes, if applicable.
• Proof of payment of creditor claims or written receipts from creditors showing payment in full or agreed settlements.
• Receipts of distribution signed by beneficiaries or a proposed distribution schedule with request for the court to dispense with receipts when appropriate.
• Bond documentation (if a bond was required) and evidence of bond premium payment or court waiver of bond.
• Any prior court orders authorizing fees, extraordinary expenses, or transactions (so the accounting can show compliance).

Typical format and filing steps

1. Use the probate court’s required caption and include the case number.
2. Number each page and provide a table of contents for longer accountings.
3. Attach exhibits (label them Exhibit A: bank statements; Exhibit B: invoices; Exhibit C: appraisals, etc.).
4. File the accounting with the probate clerk and serve copies on interested persons (beneficiaries, heirs, creditors) as required by the court’s rules or local practice.
5. Bring originals or certified copies of supporting documents to any hearing; the court may require originals for verification.

When the court will want more detail

The court will request more documentation or an itemized ledger if transactions are complex, if there are large or unexplained variances in asset values, or when beneficiaries object. If the fiduciary received or disbursed non-routine items (e.g., private party loans, property exchanges, or personal use of estate funds), provide contracts, promissory notes, or contemporaneous authorization orders.

Consequences of inadequate accountings

• The court can require the fiduciary to refile a corrected or more detailed accounting.
• Beneficiaries or interested parties can object, ask for discovery, or request a court hearing.
• The fiduciary may face surcharge (financial liability), removal, or other court orders if accounting failures show mismanagement.

Reminder: This is educational information only and is not legal advice. For specific guidance or to prepare court filings, consult a South Carolina probate attorney or your local probate court clerk.

Helpful Hints — Practical checklist and tips for smoother filings

• Start an electronic folder and a paper file for the estate/trust with separate subfolders for bank statements, invoices, tax returns, and correspondences.
• Keep a running chronological ledger showing every receipt and disbursement with references to supporting documents (match each ledger entry to a specific receipt or cancelled check).
• Label exhibits clearly and include a short cover memo explaining any complex transactions (e.g., why an asset was sold early or why legal fees were higher than anticipated).
• When possible, obtain appraisals close to the accounting date to support values rather than rough estimates.
• Serve proposed accountings on beneficiaries before filing to reduce objections and speed court approval; consider a short cover letter summarizing key points for non-lawyer recipients.
• Ask the probate clerk if your county uses required accounting forms or local rules — following the court’s preferred format reduces delays.
• Retain originals of important documents for the court hearing; attach copies to the filed accounting and bring originals to court.
• If taxes are due or expected, consult a tax professional — resolving tax issues before final distribution reduces post-closing liability.

Where to get official forms and local requirements

Use the probate clerk’s office in the county where the case is filed for local filing requirements and any county-specific forms. For statutory reference, consult Title 62 of the South Carolina Code: https://www.scstatehouse.gov/code/t62.php.

Final note: If you are unsure which documents to include, or if beneficiaries contest an accounting, seek counsel from an attorney licensed in South Carolina who handles probate and fiduciary accounting matters. This article does not create an attorney-client relationship and is not a substitute for legal advice.