FAQ: How do I properly document and file receipts for payments to heirs or service providers in an estate under West Virginia law?

Short answer: As an executor, administrator, or personal representative in West Virginia, keep contemporaneous, itemized receipts and supporting documents for every estate payment, record them in the estate accounting, and file the required inventories and final account with the probate court. Accurate, well-organized receipts protect you from personal liability and make court review and distribution faster and clearer.

Disclaimer

This is general information, not legal advice. I am not a lawyer. For advice about your specific case, contact a West Virginia attorney experienced in probate and estate administration.

Detailed answer — step‑by‑step guidance for West Virginia estate administrators

1) Understand your duties as a fiduciary

When you are appointed by a West Virginia probate court as a personal representative (executor or administrator), you have a fiduciary duty to preserve estate assets, pay valid debts, and distribute remaining assets to heirs or beneficiaries according to the will or law. Part of that duty is maintaining accurate records of receipts and disbursements so the court and beneficiaries can review your actions. See generally West Virginia probate statutes: West Virginia Code, Chapter 44 (Decedents’ Estates): https://code.wvlegislature.gov/44/.

2) What counts as a proper receipt and supporting documentation?

• Original receipts or vendor invoices that show: date, amount, payee, reason for payment (e.g., funeral, mortgage, utility, contractor repairs).
• Cancelled checks or bank statements showing the payment clearing the estate account.
• Electronic payment confirmations (with transaction ID), printed and saved.
• Signed written receipts from heirs or service providers acknowledging they received payment (date, amount, purpose, signature).
• Contracts or estimates for large services (e.g., estate repairs), plus invoices and proof of payment.
• Notes or logs for cash payments — include witness statements if possible.

3) Use an estate‑only bank account and label every transaction

Open and use an estate bank account for receipts and disbursements. Never mix estate funds with personal funds. On each check memo, electronic payment description, and receipt, note the estate name and purpose (e.g., “Estate of Jane Doe — final utility bill”). This creates a clear paper trail for the court and beneficiaries.

4) How to document payments to heirs

There are two common situations:

• Interim or advance distributions to heirs: Provide a written receipt or release signed by the heir acknowledging the amount received, the date, and whether the advance reduces their share of the estate. Keep a copy in the estate file and include the distribution in the estate accounting.
• Payments required by agreement (e.g., buyout, reimbursement): Keep the contract, invoice (if applicable), and a signed receipt or release from the heir. If payment is in cash, obtain a signed receipt and a witness signature.

5) How to document payments to service providers

For every vendor, contractor, funeral director, attorney, accountant, or other provider:

1. Obtain a written invoice showing services provided and dates.
2. Retain proof of payment (cancelled check, electronic confirmation, credit card receipt) tying the payment to the invoice.
3. If services are ongoing, keep periodic statements and reconcile them with the estate account.

6) Prepare a clear accounting for the court

West Virginia courts require fiduciaries to file inventory and accounts showing assets received, debts paid, expenses, distributions, and the estate balance. Your receipts and supporting documents are the backup for that accounting. Organize records by category (assets, debts, expenses, distributions) and attach copies of receipts rather than originals unless the court requires originals.

7) Filing with the probate court and record retention

• File required documents with the probate court in the county where probate is open. Typical filings include the inventory, intermediate or final account, and petitions for settlement or distribution. See West Virginia Code, Chapter 44: https://code.wvlegislature.gov/44/.
• Follow local county courthouse rules for filings and for submitting accountings and receipts. Some counties require originals; others accept copies. Contact the probate clerk or check the county court website for local procedures.
• Keep estate records for a minimum period—practically, retain records for several years after closing the estate (commonly 3–7 years) in case of later claims or audit. Consult counsel for recommended retention periods for your situation.

8) If an heir disputes a payment

If a beneficiary questions a payment, produce the invoice, cancelled check, and written receipt. If you made an advance distribution to an heir, show the signed release or notation that the advance is deducted from their share. If documentation is incomplete, discuss corrective steps with the court or an attorney to avoid personal liability.

9) Best practices for neat, defensible records

• Create a numbered folder system (e.g., 1-Inventories, 2-Receipts, 3-Bank Statements, 4-Contracts, 5-Distributions) and keep a spreadsheet that records date, payee, purpose, amount, check number or transaction ID, and file location for each payment.
• Scan and back up all documents electronically. Save PDFs named with date and short description (e.g., “2025-03-05_funeral_invoice.pdf”).
• For cash transactions, avoid if possible. If unavoidable, get a signed receipt and a witness statement.
• Record any informal agreements with heirs in writing and signed by the parties.

10) When to involve an attorney or accountant

Consider legal or accounting help when:

• The estate has complex assets (business interests, multiple real properties, tax issues).
• Disputed claims or beneficiary disagreements arise.
• Large advance distributions or unusual transactions are proposed.
• You need help preparing the formal accounting or petitions to the court.

Helpful Hints

• Always use an estate bank account for estate funds; label every transaction.
• Keep originals of receipts when possible; file copies with the court if originals are needed for beneficiaries or vendor returns.
• Use a simple accounting spreadsheet that ties each line item to a receipt number or filename.
• When paying an heir, document whether the payment is an advance on inheritance and get a signed release.
• Attach photocopies of key receipts to the estate accounting submitted to the probate court.
• Check the local probate clerk’s office for any local form requirements before filing your accounting.
• If a payment looks unusual or large, get a written contract and an attorney’s review before proceeding.

Sample simple receipt template (for a payment to an heir or service provider)

Keep or provide a signed copy to the payee:

Receipt for Payment
Estate: "Estate of [Decedent Name]"
Date: _____
Paid to (name): _____
Amount: $_____  (written amount: "_____ dollars")
Purpose: (brief description) _____
Paid by: (check # / ACH / cash / other) _____
Signature of payee: __________________    Date: _______
Signature of fiduciary: ________________    Date: _______
Witness (if cash): _____________________    Date: _______
  

Where to find the statute and local court information

West Virginia probate and decedents’ estate law is codified in Chapter 44 of the West Virginia Code: https://code.wvlegislature.gov/44/. For county-specific probate clerk procedures and local forms, visit your county’s probate clerk or circuit court website or contact the clerk’s office directly.

Final notes

Good documentation reduces disputes and protects you from personal liability. Maintain clear, contemporaneous receipts, attach them to the estate accounting, and check local court rules before filing. When in doubt, consult a West Virginia probate attorney or accountant to review complex transactions or contested matters.