The Basics of Probate Accounting in California

California has some very specific guidelines regarding probate accounting. Are you acquainted with all of the responsibilities of an estate trustee in the state?

Get peace of mind with a comprehensive estate plan

Trustpilot star rating bar
the basics of probate accounting in california

Contents

Updated on: February 1, 2023
Read time: 3 min

If you're the personal representative of an estate in California, you likely already know that, as the estate's trustee, a number of duties and responsibilities fall squarely on your shoulders. That means that it's in your best interest to stay in compliance with all legal requirements imposed on you. In particular, California Probate Code places a legal duty on trustees to provide an accounting to trust beneficiaries.

Woman at desk looking intently at laptop

Probate accounting in California

Probate accounting, also known as trust accounting, is simply an accounting of the transactions undertaken by an estate during a specific reporting period. Section 16062 of the California Probate Code requires trustees to provide an accounting at least once a year.

An accounting is also required when the trust is terminated, such as when the trustee wishes to close the estate and bring a petition for final distribution of the estate's assets to its beneficiaries, as well as whenever there's been a change in trustee.

California probate accounting format

While a probate accounting in California does not require the preparation of any specific forms or the use of any particular format, there are a number of pieces of information you need to include in your accounts. Section 16063 of the Probate Code requires accountings to contain the following information:

  • a statement of receipts and disbursements of trust principal and income occurring either during the last complete fiscal year of the trust or since the last accounting was made
  • a statement of assets and liabilities of the trust at the end of the trust's last complete fiscal year or at the end of the reporting period covered by the account
  • information regarding the trustee's compensation
  • information about any agents hired by the trustee
  • a statement that beneficiaries may petition the court to obtain a review of the account and the acts of the trustee
  • a statement that all claims for breach of trust are subject to a three-year limitation period

Waiver of probate accounting

There are, however, exceptions to the rule that an accounting is required. The need to submit a probate accounting can be waived if either of the following conditions are met:

  1. All persons entitled to a distribution from the estate have executed and filed a written waiver of account or a written acknowledgment that their interest in the estate has been satisfied.
  2. The interest of every person entitled to distribution from the estate has been satisfied in full.

Final accounting objections in California probate court

Beneficiaries have up to three years to file an objection or a challenge to a trustee's accounting. If an objection is filed, you as the trustee need to prove that the information you've provided in your accounting is accurate. As you might imagine, this can be a burdensome undertaking.

In many probate cases, beneficiaries don't file an objection, but disputes over final accounting can and do happen. Because the limitation period provides beneficiaries with three years to file an objection, one approach a trustee can take to obtain certainty about the finality of their accounting is to file a petition for court approval of the accounting under section 1064.

Once the court's approval is obtained, a beneficiary is no longer able to file an objection to the accounting or to make a claim challenging the trustee's actions. In other words, when a court grants a petition for approval of the final accounting, the trustee no longer faces potential liability for either mistakes made in the accounting or for their own actions as trustee of the estate. This is why, although filing such a petition requires extra work on the trustee's part, it is a step many trustees choose to take.

While probate accounting in California does require a certain amount of work and due diligence on the part of an estate trustee, submitting an accounting is something every trustee is required to do at least annually, and most certainly upon final distribution of the estate, unless proper waivers of the accounting can be obtained. If you need help with your probate accounting, consider using an online probate specialist to facilitate the process.

Get peace of mind with a comprehensive estate planStart my estate plan
Twitter logoFacebook logoLinkedIn logoReddit logo

This article is for informational purposes. This content is not legal advice, it is the expression of the author and has not been evaluated by LegalZoom for accuracy or changes in the law.

70 days ago
Trustpilot star rating bar

legal zoom is the way to go

The representative was very knowledgeable about how long it takes to transfer a deed from one person to the next he explained everything and he was very pleasant when speaking to him

Ross
70 days ago
Trustpilot star rating bar

I find that LegalZoom has all the…

I find that LegalZoom has all the answers if you're starting a business an LLC and incorporation or you're doing a trust or a Will. These are the people you want to trust don't go to an expensive attorney you're just throwing your money away. Legal soon gets five stars!

Sean Christopher
70 days ago
Trustpilot star rating bar

I spoke to the representative today about a Trust...

I spoke to the representative today regarding a question about an existing Living Trust. She was very helpful - told me exactly what I needed to know and how to accomplish it. As a representative in the Financial field I guide clients all the time on where to get documents done right - and its always LegalZoom - easy and effecient!

Gareth
79 days ago
Trustpilot star rating bar

We could not be more Pleased with the…

We could not be more Pleased with the help and service we had during the up dating of our Living Will and Advanced Directive

Richard Poulton
82 days ago
Trustpilot star rating bar

Legal Assistance for the rest of us

Legal Zoom has made it easy and affordable for us to create an LLC, a Will, and a Trust for our families.

K Chapman
85 days ago
Trustpilot star rating bar

pleasant and willing representatives…

pleasant and willing representatives ready to help me navigate through your system and supply attorney contact information for my legal questions for my last will & testament

Mark Impink
85 days ago
Trustpilot star rating bar

LegalZoom .com has exceptional, real, staff to help. I met one!

I purchased multiple accounts to update both our Living Wills and Estate Plans. After utilizing LegalZoom.com’s user-friendly and intuitive platform for these legal documents, I found it necessary to call for clarification on some information within our account. I spoke with Sandra Balderas, who expertly addressed the mistakes I had inadvertently made. Her professionalism and friendliness greatly enhanced the experience. I realized that LegalZoom is not only a straightforward website to navigate for such complex matters, but it also boasts exceptional employees. Thank you, LegalZoom.com, and especially Sandra Balderas, for guiding me through the process. I’m thrilled to have discovered LegalZoom.com.

Max -Phoenix, Arizona
85 days ago
Trustpilot star rating bar

Sarah was most helpful today regarding updating my estate plan

Sarah was most helpful today regarding updating my LZ docs created 3 years ago. She made sure I had all the information I needed, not just what I asked for. Thank you Sarah!

Diane Floyd
91 days ago
Trustpilot star rating bar

Quick and easy experience creating a…

Quick and easy experience creating a will package.

Kristin Steel
96 days ago
Trustpilot star rating bar

Used them past 10 years

Used them past 10 years. I needed another will and power of attorney.

MERLYN C
96 days ago
Trustpilot star rating bar

Tammy was wonderful and very…

Tammy was wonderful and very knowledgeable. It's because of her that I am going to open a living trust with legal zoom. She was great. Thank You

Erin
104 days ago
Trustpilot star rating bar

Pleasant Experience

Patience and weel given explanation about the process of how a "Living Trust" & "Deed" works after transitioning and guidance on how to contact an attorney whenever I need legal advice.

Sharron Martin
106 days ago
Trustpilot star rating bar

It was a breeze to deal with Legalzoom…

It was a breeze to deal with Legalzoom and finished my estate plan within an hour!! Thanks again

BT
110 days ago
Trustpilot star rating bar

Great team…

Mark and Legal Zoom make estate planning affordable and attainable.

Christopher Maginnis
142 days ago
Trustpilot star rating bar

Living Will & Forming my LLC

I have used Lega Zoom for several items, including my living will and items to form my LLC for my business. It's fast, easy, and thorough. The customer service is fantastic! I am working with David on a few items for my will,l and he has been a delight. He follows up when he says he will and is incredibly helpful. I highly recommend this company.

Kristen J
154 days ago
Trustpilot star rating bar

Nadia made it very easy for me to make…

Nadia made it very easy for me to make a decision to sign up and create my estate planning documents with legalsoom. She was very professional and knowledgeable about the package that I chose. She also offered her direct contact for any future questions I might have.

Melita D'Anna
163 days ago
Trustpilot star rating bar

Kylie helped me to review my history of…

Kylie helped me to review my history of trying to complete my estate plan and contacting a legal advisor that comes with my account. She was patient, knowledgable, and helpful.

Paula
167 days ago
Trustpilot star rating bar

I have worked with Mark Champ on… Last Will & Testament, Living Will, Quit Claim Deed

I have worked with Mark Champ on several documents I needed and every time he has provided me with every thing I needed and with so much graciousness and knowledge. It has always been such a pleasure working with Mark!!!!!!!!!!!!!

Cathy Donaldson
202 days ago
Trustpilot star rating bar

Most Dedicated Representative!

Patti Green was the most informative person in guiding me through the process of completing my estate plan . She was always there for me to answer my questions and give excellent advice . Also , she was very polite and considerate ! Legal Zoom is so fortunate to have Patti on their team . Thank you , Patti for all of your assistance and kindness !

Priscilla Page
280 days ago
Trustpilot star rating bar

Patti Green is GREAT!

Ms. Patti Green walked me through the Estate Planning process. She was very professional, patient and kind. Planning for when you are no longer here is very intricate and difficult. Working with Ms. Green helped give the assurance that I am doing the right thing for myself and loved ones.

TRINESSA
Rated4.6out of 5 based on23,911+ reviewson

Showing our favorite reviews