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Probate

7 Tips to Document Estate Expenses in Accounting

By August 7, 2025October 30th, 2025No Comments

Table of Contents

Key Takeaways

  • Executors must accurately document all estate expenses in the probate accounting to avoid having their accounts rejected by the court.
  • California probate courts require detailed entries for every transaction, including dates, check numbers, payees, and the purpose of the payment.
  • Mistakes or missing details can delay distributions to beneficiaries and increase estate costs.
  • The Grossman Law Firm assists executors and beneficiaries in navigating California’s stringent probate accounting requirements.

Why Proper Expense Documentation Matters

When an executor prepares an accounting for a California estate, precision and expertise matter; the probate court reviews each accounting to ensure transparency and compliance with the California Probate Code.

If an accounting contains errors—such as missing payment details or unclear expense categories—the court may reject it. It forces the executor to revise and resubmit, causing delays and unnecessary legal fees. In short, mistakes in accounting don’t just waste time—they reduce what’s ultimately distributed to beneficiaries.

At The Grossman Law Firm, we often explain to clients that accounting isn’t just paperwork—it’s a formal record that proves the executor has fulfilled their fiduciary duties honestly and accurately.

7 Tips to Accurately Document Estate Expenses

To reduce the risk of errors or court rejection, follow these practical tips when documenting estate expenses in your accounting:

  1. Record the Date of Each Expense: Include the exact date the executor or personal representative paid each expense.
  2. List the Check Number or Payment Method: Identify how the expense was paid—by check, electronic transfer, or cashier’s check—and include the check number when applicable.
  3. Name the Payee: Clearly list the person or company that received payment. Courts require complete transparency regarding who received estate funds.
  4. Describe the Purpose of the Payment: Briefly explain why the expense was necessary (for example, “funeral costs,” “property maintenance,” or “court filing fee”).
  5. Include the Exact Amount Paid: Every transaction must be listed in full, without rounding.
  6. State the Accounting Period: Indicate the time frame covered—typically from the decedent’s date of death to the end of the accounting period.
  7. Use Proper Schedules for Each Category: Distinguish between:
    • Disbursements made during the accounting period
    • Losses from sales or other dispositions of assets
    • Net loss from a business or trade
    • Distributions made to beneficiaries

Each category should appear on its own schedule. Following this format helps the court verify that all funds were properly managed and distributed.

Common Mistakes in Probate Accountings

Executors often make avoidable errors when preparing their first accounting. The most common include:

  • Combining all payments in one list instead of using separate schedules.
  • Forgetting to include the purpose or description of an expense.
  • Listing expenses outside of the accounting period.
  • Using estimates instead of exact figures.

A small oversight can result in the court rejecting the accounting. To prevent this, many executors choose to work with an attorney who can review their accounting before it’s filed.

Related Resources

FAQ

What happens if the court rejects my accounting?

If the probate court finds errors, you’ll be required to amend and resubmit the accounting. It delays case closure and may increase legal costs.

Can beneficiaries object to an accounting?

Yes. Beneficiaries can file formal objections if they believe expenses were misreported or funds were misused.

How often does an executor need to file an accounting?

Under California Probate Code §10950, an accounting is generally required annually and at the close of the estate, unless the court orders otherwise.

How The Grossman Law Firm Can Help

At The Grossman Law Firm, we help executors and beneficiaries throughout California prepare, review, and challenge probate accountings. Our team ensures compliance with California Probate Code requirements and protects your rights throughout the process.

Call (888) 443-6590 or fill out our Get Help Now form.

Our Intake Specialists can evaluate your case at no cost to you. Qualifying cases are scheduled for a Free Phone Consultation with Attorney Scott Grossman.

Originally Published January 31, 2018