Handling probate, trust, or estate accountings can be complex, and even minor errors can lead to legal disputes or court rejections. Learn how proper court accounting can protect you and simplify the process.

Court accountings ensure transparency, compliance, and accuracy in managing probate, trust, and estate assets. Some require legal oversight, while others remain private but demand meticulous financial reporting. Understanding these complexities helps avoid costly mistakes.

I’m Marcia Campbell, a Certified Public Accountant (CPA) and a Director at Smith Marion & Co., specializing in court-related financial accountings, including probate, estate, and conservatorship. Not all of them are in court but these apply to all. I work closely with trustees, executors, and attorneys to ensure compliance and prevent costly errors. With extensive experience, I help safeguard assets, prevent disputes, and provide peace of mind.

Understanding the Different Types of Accounting

• Probate: Required when an estate goes through the court-supervised probate process to distribute assets according to a will.
• Trust: Maintains financial transparency for trust beneficiaries, ensuring trustees adhere to fiduciary responsibilities.
• Estate: Involves tracking the assets and liabilities of a deceased person’s estate, whether probate is required or not.
• Conservatorship: Used when a court appoints someone to manage the financial affairs of an incapacitated individual. These accountings often have additional required court forms.
• Guardianship: Required when a guardian is appointed to manage the financial affairs of a minor. This accounting ensures that all transactions are properly documented and funds are used in the best interest of the individual under guardianship.

While probate, estate, conservatorship, and guardianship accountings are court-supervised, trust accountings may not require court approval. Conservatorship and guardianship accountings also involve additional court forms and strict reporting guidelines.

Each type of accounting has distinct requirements, and mistakes can lead to delays, legal disputes, or court rejections.

Common Challenges in Probate and Trust Accounting

Trustees and executors often struggle with probate court’s strict accounting requirements. Some try to handle the accounting themselves or hire a general bookkeeper, only to face court rejections due to incorrect documentation or categorization of transactions.

Some of the most common mistakes that lead to rejected accountings include:

• Failure to Provide Proper Documentation – Missing schedules, receipts, or summaries.
• Improper Categorization of Transactions – Mislabeling expenses or income creates confusion and legal challenges.
• Lack of Regular Reconciliation – Failing to balance records regularly makes errors harder to detect.
• Mixing Personal & Trust/Estate Funds – Leads to serious legal consequences and disputes.
• Poor Communication with Beneficiaries – Increases the risk of legal conflicts over financial management.

Proper accounting ensures transparency and helps trustees demonstrate that they have acted in good faith and accordance with legal obligations.

Correcting Rejected Accountings

Many of the clients come to me after they have had their initial accountings rejected by the court. I step into:

• Review and identify errors in failed reports.
• Prepare a court-compliant accounting that meets all legal requirements.
• Provide detailed schedules and required court forms, including:
  • Inventory and Appraisal – A formal list of estate assets required in probate cases.
  • Statement of Receipts & Disbursements Statement – Documents all financial transactions, including income and expenses. It includes all income received (such as rental income, interest, and dividends) and all expenses paid (such as legal fees, taxes, and distributions to beneficiaries). The court requires this statement to verify that all transactions are properly categorized and that the estate or trust funds are managed according to legal guidelines. Any discrepancies or missing entries can lead to court rejections, making it crucial to ensure complete accuracy.
  • A list of all assets at the beginning of the period and at the end of the period. It details all assets under management, such as real estate, stocks, bank accounts, and personal property, and highlights any changes due to sales, distributions, or asset appreciation/depreciation.
  • Statements of Gains & Losses on the Sale of Assets

Ensuring every detail is properly documented and presented, I help trustees and executors avoid delays and legal challenges.

Why Specialized Knowledge Matters

Unlike general CPAs and bookkeepers, professionals specializing in probate, trust, estate, guardianship, and conservatorship accounting understand the nuances of probate law and court expectations. Without expertise in this area, errors can easily result in costly legal battles and financial penalties.

When working with trustees and executors, I ensure that:

• Court-approved formats and guidelines are followed.
• Every transaction is clearly explained and supported by documentation.
• The accounting process is handled efficiently, reducing stress for those managing the estate or trust.

Key Benefits of Hiring a Specialized CPA for These Types of Accountings

• Court Compliance: Avoid rejections by ensuring reports meet legal standards.
• Dispute Prevention: Transparent reporting minimizes misunderstandings and conflicts among beneficiaries.
• Efficiency: Proper accounting from the start saves time and money.
• Peace of Mind: Trustees and executors can focus on their responsibilities without worrying about complex accounting requirements.

Let Us Help You Navigate These Complex Accountings

If you’re a trustee, executor, or attorney handling estate, trust, guardianship, conservatorship, or probate accounting,
working with a specialized CPA can prevent costly mistakes and legal headaches. Whether you need to prepare an initial accounting or fix a rejected one, I am here to help maintain accuracy and compliance.

Ensuring accuracy in these accountings is more than just numbers—it’s about maintaining trust, transparency, and legal accuracy.
For inquiries, visit Marcia Campbell’s website to learn more about specialized accounting services.
For comprehensive accounting solutions,
contact Smith Marion & Co. today to see how our team can support your needs.