Who Should Approve Estate Accounts in the UK?

Question from lobb, Who Should Approve Estate Accounts in the UK?

Answer from AI:

When a firm is acting in the administration of a deceased person’s estate in the UK, and the deceased appointed the firm and her sister as executors, the approval of the estate accounts is an important step. Here’s a general explanation of the process and who should be involved in approving the estate accounts.

Understanding Estate Accounts

Estate accounts are detailed records of all the financial transactions that have taken place during the administration of the estate. These accounts typically include:

• Assets and liabilities of the deceased at the date of death
• Income received by the estate
• Expenses and debts paid out of the estate
• Distributions to beneficiaries

Who Needs to Approve the Estate Accounts?

In the UK, the approval process for estate accounts generally involves the following parties:

1. Executors: Both executors (the firm and the sister) should review and approve the estate accounts. Executors have a fiduciary duty to ensure that the accounts accurately reflect the administration of the estate.
2. Beneficiaries: While it is not a legal requirement for beneficiaries to formally approve the estate accounts, it is considered good practice to provide them with a copy of the accounts for transparency. This includes the brother (who receives a cash legacy of £10,000) and the son (who receives the residue of the estate).

Legal Requirements and Best Practices

There is no specific legal form that estate accounts must take, but they should be clear, comprehensive, and accurate. Executors should ensure that the accounts are prepared in a manner that can be easily understood by the beneficiaries.

Steps to Take

1. Prepare the Accounts: The firm, acting as a professional executor, should prepare the estate accounts in detail.
2. Review by Executors: Both the firm and the sister should review and approve the accounts.
3. Share with Beneficiaries: Provide copies of the estate accounts to the brother and the son for their information and any comments they may have.
4. Resolve Any Issues: Address any questions or concerns raised by the beneficiaries to ensure transparency and trust.

When to Seek Legal Advice

If there are disputes among the executors or beneficiaries, or if the estate is particularly complex, it may be necessary to seek legal advice. Consulting with a legal professional can help ensure that the estate is administered correctly and that all legal obligations are met.

For more detailed information, you can refer to resources such as the [UK Government’s guide on dealing with the estate of someone who has died](https://www.gov.uk/wills-probate-inheritance) and the [Law Society’s guidance on probate and estate administration](https://www.lawsociety.org.uk/topics/wills-and-probate).

Remember, this information is intended to provide a general understanding and should not be taken as specific legal advice. Always consult with a legal professional for personalized guidance.