Skip to main content
WUHLD
← Back to glossary

Estate Accounts

Also known as: Executor's Accounts, Estate Records

Definition

Estate accounts are detailed financial records showing all assets, debts, expenses, and distributions in a deceased person's estate from death until final distribution to beneficiaries.

These legally required documents provide transparency and accountability, proving that executors or administrators have handled the estate properly and giving beneficiaries confidence that everything was managed correctly.

What Are Estate Accounts?

Under English and Welsh law, estate accounts are a legal requirement in estate administration. Required under the Administration of Estates Act 1925, personal representatives—whether executors (appointed by will) or administrators (appointed when there's no will)—must produce detailed financial records documenting all transactions from the date of death through final distribution to beneficiaries. The purpose is to ensure transparency and accountability to beneficiaries, HMRC, and the courts. While no legally prescribed format exists, certain key components are expected in all estate accounts.

Estate accounts contain far more than a simple asset list. A complete set includes a summary page with the deceased's details, will date (if applicable), personal representative's name, and beneficiaries. The accounts must show a complete inventory of all assets with date of death values, all liabilities (debts) with amounts, and any inheritance tax calculations showing exemptions or reliefs applied. They track the capital account (changes in asset values), the income account (any income earned during administration such as rent or interest), administration expenses (probate fees, solicitor costs, valuation fees), and crucially, a distribution account showing exactly how the net estate will be divided among beneficiaries.

Only residuary beneficiaries—those entitled to a share of what remains after debts and specific gifts—are legally entitled to see full estate accounts if they request them. Sarah, as executor of her father David's £450,000 estate, prepared detailed accounts showing the house valued at £320,000, savings of £95,000, debts of £12,000, and administration costs of £8,500. The three residuary beneficiaries (Sarah and her two brothers) received these accounts showing the net estate of £429,500 divided equally, with each receiving £143,166.67. Beneficiaries receiving only a specific sum (pecuniary legacy) generally cannot see the accounts. However, if James left his niece Emma a £10,000 legacy but the estate only has £8,000 after debts, Emma can request accounts to verify the shortfall is genuine.

Executors have a legal duty under the Administration of Estates Act 1925 to keep accurate records and can be held personally liable for errors, even unintentional mistakes. If executors distribute an estate incorrectly, they may have to pay overlooked debts from their own pocket. Thomas, executor of his mother Margaret's £380,000 estate, distributed £360,000 to three beneficiaries after paying £20,000 in known debts. Two months later, a credit card company contacted him about a £15,000 debt he'd missed. Because he'd already distributed the estate, Thomas was personally liable for the £15,000 and had to pay it himself. Beneficiaries concerned about estate accounts can first raise concerns with the executor (mistakes may be innocent), but if the executor refuses to correct errors or provide accounts, beneficiaries can apply to the Probate Registry for an "inventory and account" order. Courts can require executors to provide accounts under oath and may order executors to personally pay legal costs if they behave unreasonably.

Common Questions

"Do executors have to provide estate accounts to beneficiaries?" Yes, residuary beneficiaries (those entitled to the remaining estate after debts and specific gifts) are legally entitled to see estate accounts if they request them. However, beneficiaries receiving only a specific sum (pecuniary legacy) are not entitled to see the accounts unless there are insufficient funds to pay their legacy in full. This distinction protects the deceased's privacy where appropriate while ensuring transparency for those with a direct interest in the estate's administration.

"What information must be included in estate accounts?" Estate accounts must include a summary with the deceased's details, a complete list of all assets and liabilities at the date of death with values, details of any inheritance tax due, all administration expenses paid, any income earned during administration, and a distribution account showing how the estate will be divided among beneficiaries. Good practice also includes supporting documentation such as bank statements, bills of sale, and receipts for all expenses.

"What happens if an executor makes a mistake in the estate accounts?" Executors can be held personally liable for mistakes in estate accounts, even if unintentional. If errors are discovered after distribution, the executor may have to pay any overlooked debts or costs from their own pocket. Beneficiaries can challenge accounts and apply to court for an inventory and account order if the executor refuses to correct errors. This is why maintaining accurate, detailed records throughout administration is essential for executor protection.

Common Misconceptions

Myth: All beneficiaries are automatically entitled to see the full estate accounts

Reality: Only residuary beneficiaries (those receiving a share of what remains after debts and specific gifts) are legally entitled to see estate accounts. Beneficiaries receiving a specific sum of money (pecuniary legacy) cannot see the accounts unless there are insufficient funds to pay their legacy in full. This distinction exists to protect the deceased's privacy where possible while maintaining transparency with those entitled to the residue.

Myth: Estate accounts are just a simple list of what the deceased owned

Reality: Estate accounts are comprehensive financial records documenting all transactions from death to final distribution, including asset values, debts paid, administration expenses, inheritance tax calculations, any income earned during administration, and detailed distribution calculations. They're formal legal documents, not just an inventory. People often confuse estate accounts with the initial inventory of assets created when applying for probate—the inventory is just the starting point, while estate accounts track the entire administration journey.

  • Executor: The person appointed in a will who prepares and provides estate accounts when administering an estate.
  • Administrator: The person appointed when there's no will who performs the same function as executors, including preparing estate accounts.
  • Personal Representative: The collective term for both executors and administrators who have legal duties to prepare estate accounts.
  • Estate Administration: The overall process of managing a deceased person's estate, with estate accounts being a key output documenting this work.
  • Beneficiary: The individuals who receive inheritances, with residuary beneficiaries having legal rights to see estate accounts.
  • Probate: The legal process that grants executors authority to act, with estate accounts typically prepared after probate is granted.
  • Inventory of Assets: The initial list of assets prepared for probate, which forms the starting point of estate accounts but is much less comprehensive.
  • Distribution: The final stage of estate administration where estate accounts show how inheritance was calculated and must be approved before distribution occurs.

Need Help with Your Will?

Understanding estate accounts highlights the importance of clear estate planning. A well-organized will with straightforward instructions makes the executor's accounting job easier and ensures transparent estate administration. Creating a properly structured will today protects your loved ones from administrative complications tomorrow.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete, legally binding will plus three expert guides. Preview your will free before paying anything—no credit card required.

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.