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Chapter 4. Accounts of California Probate Code >> Division 3. >> Part 1. >> Chapter 4.
This chapter governs all accounts to be filed with the court.
Except as specifically provided elsewhere in this code, or unless
good cause is shown therefore, no information in addition to that
required in this chapter need be in an account.
This chapter shall be operative on and after July 1, 1997.
(a) All accounts shall state the period covered by the
account and contain a summary showing all of the following, to the
extent applicable:
(1) The property on hand at the beginning of the period covered by the account, which shall be the value of the property initially received by the fiduciary if this is the first account, and shall be the property on hand at the end of the prior account if this is a subsequent account.
(2) The value of any assets received during the period of the accounting which are not assets on hand as of the commencement of the administration of an estate.
(3) The amount of any receipts of income or principal, excluding items listed under paragraphs (1) and (2) or receipts from a trade or business.
(4) Net income from a trade or business.
(5) Gains on sales.
(6) The amount of disbursements, excluding disbursements for a trade or business or distributions.
(7) Loss on sales.
(8) Net loss from trade or business.
(9) Distributions to beneficiaries, the ward or conservatee.
(10) Property on hand at the end of the accounting period, stated at its carry value.
(b) The summary shall be in a format substantially the same as the following, except that inapplicable categories need not be shown:
(1) The property on hand at the beginning of the period covered by the account, which shall be the value of the property initially received by the fiduciary if this is the first account, and shall be the property on hand at the end of the prior account if this is a subsequent account.
(2) The value of any assets received during the period of the accounting which are not assets on hand as of the commencement of the administration of an estate.
(3) The amount of any receipts of income or principal, excluding items listed under paragraphs (1) and (2) or receipts from a trade or business.
(4) Net income from a trade or business.
(5) Gains on sales.
(6) The amount of disbursements, excluding disbursements for a trade or business or distributions.
(7) Loss on sales.
(8) Net loss from trade or business.
(9) Distributions to beneficiaries, the ward or conservatee.
(10) Property on hand at the end of the accounting period, stated at its carry value.
(b) The summary shall be in a format substantially the same as the following, except that inapplicable categories need not be shown:
SUMMARY OF ACCOUNT
CHARGES:
Property on hand $
at beginning
of
account (or
Inventories) ________________________________
Additional
property
received
(or
Supplemental
Inventories) ________________________________
Receipts
(Schedule ______) ________________________________
Gains on Sale or
Other
Disposition
(Schedule
_______) ________________________________
Net income from
trade or
business
(Schedule_______) ________________________________
Total Charges: $ ________________________________
CREDITS:
Disbursements $
(Schedule
_______) ________________________________
Losses on Sale
or Other
Disposition
(Schedule
_______) ________________________________
Net loss from
trade or
business
(Schedule
______) ________________________________
Distributions
(Schedule ______) ________________________________
Property on hand
at close of
account
(Schedule ______) ________________________________
Total Credits: $ ________________________________
(c) Total charges shall equal total credits.
(d) For purposes of this section, the terms "net income" and "net loss" shall be utilized in accordance with general accounting principles. Nothing in this section is intended to require that the preparation of the summary must include "net income" and "net loss" as reflected in the tax returns governing the period of the account.
(d) For purposes of this section, the terms "net income" and "net loss" shall be utilized in accordance with general accounting principles. Nothing in this section is intended to require that the preparation of the summary must include "net income" and "net loss" as reflected in the tax returns governing the period of the account.
The summary shall be supported by detailed schedules showing
the following:
(a) Receipts, showing the nature or purpose of each item, the source of the receipt, and the date thereof.
(b) Disbursement, including the nature or purpose of each item, the name of the payee, and the date thereof.
(c) Net income or loss from a trade or business, which shall be sufficient if it provides the information disclosed on Schedule C or F of the federal income tax return.
(d) Calculation of gains or losses on sale or other disposition.
(e) Distributions of cash or property to beneficiaries, ward or conservatee, showing the date and amount of each, with the distribution of property shown at its carry value.
(f) Itemized list of property on hand, describing each item at its carry value.
(a) Receipts, showing the nature or purpose of each item, the source of the receipt, and the date thereof.
(b) Disbursement, including the nature or purpose of each item, the name of the payee, and the date thereof.
(c) Net income or loss from a trade or business, which shall be sufficient if it provides the information disclosed on Schedule C or F of the federal income tax return.
(d) Calculation of gains or losses on sale or other disposition.
(e) Distributions of cash or property to beneficiaries, ward or conservatee, showing the date and amount of each, with the distribution of property shown at its carry value.
(f) Itemized list of property on hand, describing each item at its carry value.
(a) In all accounts, there shall be an additional schedule
showing the estimated market value of the assets on hand as of the
end of the accounting period, and a schedule of the estimated market
value of the assets on hand as of the beginning of the accounting
period for all accounts subsequent to the initial account. The
requirement of an estimated value of real estate, a closely held
business, or other assets without a ready market, may be satisfied by
a good faith estimate by the fiduciary.
(b) If there were purchases or other changes in the form of assets occurring during the period of the account, there shall be a schedule showing these transactions. However, no reporting is required for transfers between cash or accounts in a financial institution or money market mutual funds as defined in subdivision (d) of Section 8901.
(c) If an estate of a decedent or a trust will be distributed to an income beneficiary, there shall be a schedule showing an allocation of receipts and disbursements between principal and income.
(d) If there is specifically devised property, there shall be an additional schedule accounting for income, disbursements, and proceeds of sale pursuant to Section 12002 and subdivision (a) of Section 16340.
(e) If any interest has been paid or is to be paid under Section 12003, 12004, or 12005, or subdivision (b) of Section 16340, there shall be a schedule showing the calculation of the interest.
(f) If the accounting contemplates a proposed distribution, there shall be a schedule setting forth the proposed distribution, including the allocation of income required under Section 12006. If the distribution requires an allocation between trusts, the allocation shall be set forth on the schedule, unless the allocation is to be made by a trustee after receipt of the assets. If the distribution requires valuation of assets as of the date of distribution, the schedule shall set forth the fair market value of those assets.
(g) If, at the end of the accounting period, there are liabilities of the estate or trust, except current or future periodic payments, including rent, salaries, utilities, or other recurring expenses, there shall be a schedule showing all of the following:
(1) All liabilities which are a lien on estate or trust assets.
(2) Taxes due but unpaid as shown on filed returns or assessments received subsequent to filing of returns.
(3) All notes payable.
(4) Any judgments for which the estate or trust is liable.
(5) Any other material liability.
(h) If the guardian or conservator has knowledge of any real property of the conservatee or ward located in a foreign jurisdiction, the guardian or conservator shall include an additional schedule that identifies the real property, provides a good faith estimate of the fair market value of the real property, and states what action, if any, will or has been taken to preserve and protect the real property, including a recommendation whether an ancillary proceeding is necessary to preserve and protect the real property.
(b) If there were purchases or other changes in the form of assets occurring during the period of the account, there shall be a schedule showing these transactions. However, no reporting is required for transfers between cash or accounts in a financial institution or money market mutual funds as defined in subdivision (d) of Section 8901.
(c) If an estate of a decedent or a trust will be distributed to an income beneficiary, there shall be a schedule showing an allocation of receipts and disbursements between principal and income.
(d) If there is specifically devised property, there shall be an additional schedule accounting for income, disbursements, and proceeds of sale pursuant to Section 12002 and subdivision (a) of Section 16340.
(e) If any interest has been paid or is to be paid under Section 12003, 12004, or 12005, or subdivision (b) of Section 16340, there shall be a schedule showing the calculation of the interest.
(f) If the accounting contemplates a proposed distribution, there shall be a schedule setting forth the proposed distribution, including the allocation of income required under Section 12006. If the distribution requires an allocation between trusts, the allocation shall be set forth on the schedule, unless the allocation is to be made by a trustee after receipt of the assets. If the distribution requires valuation of assets as of the date of distribution, the schedule shall set forth the fair market value of those assets.
(g) If, at the end of the accounting period, there are liabilities of the estate or trust, except current or future periodic payments, including rent, salaries, utilities, or other recurring expenses, there shall be a schedule showing all of the following:
(1) All liabilities which are a lien on estate or trust assets.
(2) Taxes due but unpaid as shown on filed returns or assessments received subsequent to filing of returns.
(3) All notes payable.
(4) Any judgments for which the estate or trust is liable.
(5) Any other material liability.
(h) If the guardian or conservator has knowledge of any real property of the conservatee or ward located in a foreign jurisdiction, the guardian or conservator shall include an additional schedule that identifies the real property, provides a good faith estimate of the fair market value of the real property, and states what action, if any, will or has been taken to preserve and protect the real property, including a recommendation whether an ancillary proceeding is necessary to preserve and protect the real property.
(a) The petition for approval of the account or a report
accompanying the petition shall contain all of the following:
(1) A description of all sales, purchases, changes in the form of assets, or other transactions occurring during the period of the account that are not otherwise readily understandable from the schedule.
(2) An explanation of any unusual items appearing in the account.
(3) A statement of all compensation paid from the assets subject to the account to the fiduciary or to the attorneys for the fiduciary other than pursuant to a prior court order.
(4) A statement disclosing any family or affiliate relationship between the fiduciary and any agent hired by the fiduciary during the accounting period.
(5) An allegation disclosing whether all of the cash has been invested and maintained in interest bearing accounts or in investments authorized by law or the governing instrument, except for an amount of cash that is reasonably necessary for the orderly administration of the estate.
(b) The filing of an account shall be deemed to include a petition requesting its approval, and may include additional petitions for authorization, instruction or confirmation authorized by the code, including, but not limited to, a request for an order for compensation of the fiduciary and the attorney for the fiduciary.
(c) For purposes of this section, "family" means a relationship created by blood or marriage. For purposes of this section, "affiliate" means an entity that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, the fiduciary.
(1) A description of all sales, purchases, changes in the form of assets, or other transactions occurring during the period of the account that are not otherwise readily understandable from the schedule.
(2) An explanation of any unusual items appearing in the account.
(3) A statement of all compensation paid from the assets subject to the account to the fiduciary or to the attorneys for the fiduciary other than pursuant to a prior court order.
(4) A statement disclosing any family or affiliate relationship between the fiduciary and any agent hired by the fiduciary during the accounting period.
(5) An allegation disclosing whether all of the cash has been invested and maintained in interest bearing accounts or in investments authorized by law or the governing instrument, except for an amount of cash that is reasonably necessary for the orderly administration of the estate.
(b) The filing of an account shall be deemed to include a petition requesting its approval, and may include additional petitions for authorization, instruction or confirmation authorized by the code, including, but not limited to, a request for an order for compensation of the fiduciary and the attorney for the fiduciary.
(c) For purposes of this section, "family" means a relationship created by blood or marriage. For purposes of this section, "affiliate" means an entity that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, the fiduciary.
