What Are Estate Accounts and do I need them?

When a person dies, their estate must be administered by the Personal Representatives of the deceased: “executors” (if there is a will) or “administrators” (if there is no will, or no valid executor appointment in the Will).

One of the most important tasks in this process is preparing estate accounts. These are the formal financial statement of the estate, setting out in detail what assets were owned, what debts and expenses were paid, and how the remaining funds are distributed among beneficiaries.

The Purpose of Estate Accounts

• Transparency: They provide beneficiaries with a clear record of how the estate has been handled.
• Accountability: Personal Representatives have a duty to account for their actions. Estate accounts demonstrate compliance with this duty.
• Finalisation: They mark the conclusion of the administration process, allowing distributions to be made with confidence.

The Society of Trust and Estate Practitioners (STEP) emphasises that accurate estate accounts are essential to professional estate administration, ensuring that Personal Representatives meet their fiduciary obligations.

What Do Estate Accounts Include?

A typical set of estate accounts will contain:

• Synopsis: Identifying the deceased, date of death, and Personal Representatives and other important information such as date of the Grant of Probate and any wishes left in a Will (if there was one).
• Assets: A schedule of all assets at the date of death, including property, bank accounts, investments, and personal possessions. This should match the tax return and the figures on the Grant of Probate.
• Liabilities: Funeral expenses, debts, taxes, and administration costs.
• Income and expenditure: Any income received during administration and payments made.
• Distribution: A breakdown of how the net estate is divided among beneficiaries.

Specialist firms often break estate accounts into clear sections to make them accessible and easy to follow.

Legal and Practical Considerations

In the UK, Personal Representatives are legally obliged to keep accurate records.

In straightforward estates, where the executor is also the sole beneficiary, accounts may be informal. However, in more complex estates—particularly where multiple beneficiaries are involved—formal accounts are essential to avoid disputes.

Who is entitled to see these Estate Accounts?

Residuary beneficiaries are entitled to see estate accounts before receiving their inheritance. In some instances, non-residuary beneficiaries (such as cash legatees) and debtors are also entitled.

Can Lawson West help?

Yes! Lawson West can prepare Estate Accounts on behalf of the Personal Representatives, but it can be laborious and expensive if the Personal Representatives haven’t kept all of the paperwork, so it is often beneficial to instruct Lawson West to act in the administration as a whole, to ensure maximum efficiency.

Lawson West use accounts approved by the Society of Trust and Estate Practitioners (STEP), and have full TEP members within the team to assist.

If you would like to discuss Wills, Probate or Estate Planning and how we may be able to help, please give our friendly team a call on 0116 212 1000 or 01858 445 480 or complete our Contact Us form.