Estate Accounting Lawyers in Florida

One of the most important obligations a personal representative has during the administration of a Florida estate is the duty to account for all estate assets, transactions, and distributions. Estate accountings provide a transparent record of how estate funds have been managed, and they serve as a critical safeguard for beneficiaries, creditors, and the court. At the Law Offices of Albert Goodwin, PA, we represent personal representatives who need help preparing accurate and compliant accountings, as well as beneficiaries who have concerns about how an estate has been administered. Whether you need to prepare, review, or object to an estate accounting, our firm has the experience and knowledge to protect your interests.

What Is an Estate Accounting?

An estate accounting is a formal or informal report that details the financial activity of an estate during a specific period of administration. It is the mechanism by which a personal representative demonstrates to the court, the beneficiaries, and other interested parties that they have fulfilled their fiduciary duties honestly and competently. The accounting tracks every dollar that has come into and gone out of the estate, from the initial marshaling of assets through to the final distribution to beneficiaries.

In Florida, estate accountings are governed by the Florida Probate Code, specifically provisions within Chapter 733 of the Florida Statutes. The accounting requirement exists because the personal representative occupies a position of trust. They are handling other people's money and property, and the law demands transparency and accountability. Without proper accountings, there would be no way for beneficiaries to verify that their inheritance has been handled properly, or for the court to confirm that the estate has been administered in accordance with the law.

The Personal Representative's Duty to Account

Under Florida law, the personal representative has a fiduciary duty to keep accurate records of all estate transactions and to provide accountings to the court and to interested persons. This duty arises from the moment the personal representative is appointed through Letters of Administration and continues until the estate is fully administered and closed. The personal representative must maintain detailed records of all property received, all income earned, all expenses paid, all claims satisfied, and all distributions made.

Failure to provide proper accountings can have serious consequences. A personal representative who neglects their accounting obligations may be subject to removal by the court, personal liability for losses to the estate, surcharge for improper expenditures, and an award of attorney's fees to the beneficiaries who were forced to compel the accounting. If a personal representative is refusing to account or providing incomplete information, beneficiaries have the right to petition the court to compel a full and complete accounting. Our firm regularly assists beneficiaries in estate litigation matters involving accounting disputes.

Florida's Statutory Requirements for Estate Accountings

Interim Accountings Under F.S. Section 733.5036

When an estate administration extends over a significant period of time, beneficiaries and other interested persons have the right to receive periodic updates on the status of the estate's finances. Florida Statute Section 733.5036 addresses interim accountings and provides that any interested person may compel the personal representative to file an accounting at reasonable intervals during the course of administration. An interim accounting covers a specific period of time and shows all financial activity during that period, including receipts, disbursements, distributions, gains, losses, and the current value of remaining estate assets.

Interim accountings are particularly important in estates that take a long time to administer, whether because of complex assets, pending litigation, tax disputes, or other complications. They ensure that beneficiaries are not left in the dark for months or years while the personal representative manages the estate. If the personal representative refuses to provide an interim accounting upon reasonable request, the interested person may petition the probate court to compel one.

Final Accounting Under F.S. Section 733.901

Before an estate can be closed, the personal representative must file a final accounting, or obtain a waiver of the accounting from all interested persons. Under Florida Statute Section 733.901, the personal representative must file a final accounting and a petition for discharge. The final accounting is a comprehensive summary of the entire administration, covering the period from the date of the personal representative's appointment through the proposed date of final distribution. It must account for every asset that came into the personal representative's control and every transaction that occurred during the administration.

The final accounting is the estate's closing statement. Once it is filed and approved by the court (or waived by the beneficiaries), the personal representative is discharged from their duties and released from further liability, except as to matters specifically reserved by the court. This is why the final accounting is so critical: it is the last opportunity for beneficiaries to examine the personal representative's management of the estate and raise any objections before the personal representative is released from their fiduciary obligations.

What Must an Estate Accounting Include?

A proper estate accounting under Florida law must be thorough and detailed. Whether it is an interim accounting or a final accounting, the document should include the following categories of information:

Inventory of assets: A complete listing of all assets that came into the personal representative's possession or control, including real property, bank accounts, investment accounts, personal property, business interests, and any other assets belonging to the estate. The inventory should reflect the values of these assets as of the date of death and as of the accounting date.
Receipts and income: All income received by the estate during the accounting period, including interest, dividends, rental income, proceeds from the sale of assets, insurance proceeds, and any other funds received. Each receipt should be documented with sufficient detail to allow verification.
Disbursements and expenses: All payments made from the estate, including funeral expenses, administrative costs, court filing fees, appraisal fees, tax payments, creditor claims, utility bills, property maintenance costs, and all other expenditures. Each disbursement should be supported by documentation such as invoices, receipts, or court orders.
Distributions to beneficiaries: All distributions made to beneficiaries, whether partial or final, with identification of the recipient, the amount or property distributed, and the date of distribution.
Compensation of the personal representative: The amount of compensation taken or proposed by the personal representative for their services. Under F.S. § 733.617, the personal representative is entitled to reasonable compensation, and the accounting must disclose the amount claimed.
Attorney's fees and costs: The fees charged by the estate's attorney, as well as any other professional fees (accountants, appraisers, financial advisors). These fees must be reasonable under F.S. § 733.6171.
Gains and losses: Any gains or losses realized from the sale or disposition of estate assets, as well as any changes in the value of investments held by the estate.
Assets on hand: A listing of all assets remaining in the estate as of the end of the accounting period, with their current values.

The accounting must be mathematically accurate and internally consistent. The beginning balance, plus receipts and gains, minus disbursements, losses, and distributions, must equal the ending balance. Any discrepancies will raise red flags and may trigger objections from beneficiaries or scrutiny from the court.

Formal vs. Informal Accountings in Florida

Florida law recognizes both formal and informal accountings, and the distinction is important for both personal representatives and beneficiaries.

Formal Accounting

A formal accounting is filed with the probate court and is subject to court review and approval. The Florida Probate Rules prescribe the format and content requirements for formal accountings. Once a formal accounting is filed, interested persons are served with a copy and given a specific period of time within which to file objections. If no objections are filed within the prescribed time, the court may approve the accounting, which has the effect of binding the interested persons and releasing the personal representative from liability for the transactions covered by the accounting.

Formal accountings provide the greatest level of protection for the personal representative because, once approved by the court, they are generally conclusive. However, they are also more time-consuming and expensive to prepare, and they require strict compliance with the formatting and content requirements of the Florida Probate Rules.

Informal Accounting

An informal accounting, sometimes referred to as an accounting by way of verified statement, is provided directly to the beneficiaries rather than filed with the court. While it must still be accurate and complete, it does not need to comply with the strict formatting requirements of a formal court accounting. If all interested persons waive the formal accounting and accept the informal accounting, the personal representative may be discharged without court approval of the accounting.

Informal accountings are commonly used in smaller or less contentious estates where the beneficiaries trust the personal representative and are satisfied with the information provided. However, beneficiaries should be cautious about waiving a formal accounting, as doing so may limit their ability to later challenge the personal representative's management of the estate. Before signing any waiver, beneficiaries should carefully review the accounting and consult with an attorney.

Objections to Estate Accountings

Beneficiaries and other interested persons have the right to object to an estate accounting if they believe it is inaccurate, incomplete, or reveals improper conduct by the personal representative. Common grounds for objecting to an accounting include:

Missing or unaccounted-for assets that should have been included in the estate
Unauthorized or unexplained expenditures from estate funds
Self-dealing by the personal representative, such as purchasing estate property for themselves at below-market value
Failure to obtain proper appraisals before selling estate assets
Excessive or unreasonable compensation claimed by the personal representative
Excessive or unreasonable attorney's fees charged to the estate
Failure to invest estate assets prudently during the administration period
Improper allocation of receipts and disbursements between income and principal
Distributions made to incorrect persons or in incorrect amounts
Mathematical errors or internal inconsistencies in the accounting

When objections are filed, the probate court will schedule a hearing at which both sides can present evidence. The personal representative bears the burden of proving that each transaction in the accounting was proper and in accordance with their fiduciary duties. If the court sustains the objections, the personal representative may be surcharged for improper expenditures, ordered to return misappropriated funds, removed from their position, and required to pay the objecting party's attorney's fees. Our firm has extensive experience in contested accounting proceedings, representing both personal representatives defending their accountings and beneficiaries challenging them.

Reasonableness of Personal Representative and Attorney Fees

Two of the most frequently contested items in any estate accounting are the personal representative's compensation and the attorney's fees charged to the estate. Florida law provides specific standards for evaluating the reasonableness of both.

Personal Representative Compensation Under F.S. Section 733.617

Under Florida Statute Section 733.617, a personal representative is entitled to a commission that is reasonable for the services rendered, based on the compensable value of the estate. The statute provides a presumptively reasonable fee schedule based on the value of the estate's assets, but it also allows the court to award higher or lower compensation based on the circumstances. Factors the court may consider include the complexity of the estate, the time and effort required, the skill and experience of the personal representative, and the results achieved.

Attorney's Fees Under F.S. Section 733.6171

Under Florida Statute Section 733.6171, the attorney for the personal representative is entitled to reasonable compensation from the estate. The statute also provides a presumptively reasonable fee schedule, but the court retains the discretion to adjust fees based on the complexity of the legal issues, the amount of work performed, the results achieved, and other relevant factors. Beneficiaries who believe that attorney's fees are excessive may object, and the court will conduct a hearing to determine reasonableness.

It is important for both personal representatives and beneficiaries to understand that fees are subject to scrutiny. Personal representatives should ensure that all fees are documented and justified. Beneficiaries should carefully review the fee disclosures in any accounting and not hesitate to raise concerns if the amounts appear excessive or disproportionate to the services rendered.

Beneficiary Rights to Information and Accountings

Florida law provides beneficiaries with important rights to information about the administration of an estate. These rights include:

Right to receive a copy of the will: Under F.S. Section 733.212, the personal representative must serve a copy of the notice of administration on all beneficiaries, which includes information about how to obtain a copy of the will.
Right to information about estate assets: Beneficiaries are entitled to receive a copy of the estate inventory, which lists all probate assets and their values.
Right to interim accountings: As discussed above, beneficiaries may compel the personal representative to provide interim accountings at reasonable intervals under F.S. Section 733.5036.
Right to the final accounting: Before the estate can be closed, beneficiaries must receive the final accounting and have an opportunity to review it and file objections.
Right to petition the court: If the personal representative is unresponsive to requests for information or accounting, beneficiaries may petition the probate court to compel compliance.

Beneficiaries who feel they are being kept in the dark about estate finances should act promptly. The longer improper conduct goes unchallenged, the more difficult it may become to recover lost or mismanaged assets. An experienced estate litigation attorney can help beneficiaries enforce their rights and hold the personal representative accountable.

How We Help with Estate Accountings

At the Law Offices of Albert Goodwin, PA, we provide comprehensive legal services related to estate accountings in Florida. Our practice includes:

Preparing Estate Accountings for Personal Representatives

We assist personal representatives in preparing accurate, compliant, and thorough accountings that satisfy the requirements of the Florida Probate Code and the Florida Probate Rules. We work with the personal representative to gather all supporting documentation, organize financial records, reconcile bank statements, and present the accounting in a clear and professional format. A well-prepared accounting reduces the risk of objections and helps the personal representative obtain a smooth discharge at the conclusion of the administration.

Reviewing Accountings for Beneficiaries

We review estate accountings on behalf of beneficiaries who want to ensure that the personal representative has properly managed the estate. Our review includes a detailed examination of all receipts, disbursements, distributions, and fees to identify any irregularities, omissions, or questionable transactions. If we identify concerns, we advise the beneficiary on their options and the likelihood of success in pursuing objections.

Objecting to Accountings and Litigating Disputes

When an accounting reveals improper conduct, self-dealing, excessive fees, or other problems, we file formal objections on behalf of our clients and litigate the matter in probate court. We have experience handling contested accounting proceedings at every level, from informal negotiations to full evidentiary hearings before the court. Our goal is to ensure that our clients receive every dollar they are entitled to and that fiduciaries are held to the highest standards of accountability.

Compelling Accountings from Unresponsive Personal Representatives

When a personal representative refuses to provide information or accountings, we petition the court on behalf of beneficiaries to compel compliance. The court has broad authority to enforce accounting obligations, including the power to remove the personal representative, impose sanctions, and award attorney's fees to the petitioning party.

Contact Our Estate Accounting Lawyers Today

Whether you are a personal representative who needs help preparing a proper accounting, or a beneficiary who has concerns about how an estate is being managed, the Law Offices of Albert Goodwin, PA is here to help. We serve clients throughout Miami, Coral Gables, and the state of Florida in all matters related to estate accountings, probate administration, estate litigation, and estate planning.

Call us today at 786-522-1411 or email us at [email protected] to schedule a consultation. Our office is located at 121 Alhambra Plz #1000, Coral Gables, FL 33134. We are ready to protect your rights and guide you through the estate accounting process.