The final accounting
Before the estate can close, you must prepare a final accounting showing every dollar that came into and left the estate during administration. This typically includes:
- Opening inventory — assets at the date of death
- Income received — interest, dividends, rent, refunds, insurance proceeds
- Disbursements — every creditor paid, every fee (attorney, executor, appraisal, court, publication), every tax paid
- Remaining balance — what's left to distribute
- Proposed distribution plan — exactly who gets what
Beneficiaries receive a copy. They have a chance to object. If they consent in writing (which speeds things up considerably), the court review is usually faster and less formal.
Petition for final distribution
Once the accounting is complete, you file a Petition for Final Distribution asking the court to approve your accounting and authorize you to distribute the remaining assets per the will.
The court schedules a hearing. If there are no objections, the hearing is usually perfunctory — the judge reviews the accounting, confirms beneficiaries had notice, and signs an order approving distribution.
Actually distributing
After the court order, distribute assets per the plan. Best practices:
- Get receipts. Every beneficiary signs acknowledging what they received. Keep these forever.
- Transfer titled assets properly. Vehicles go through DMV with the court order. Real property is conveyed by executor's deed.
- Mail cash distributions via traceable means. Certified mail, wire transfer with confirmation, or delivered in person with signed receipt.
- Retain enough cash to pay final expenses. There will always be one last bill. Keep a reserve.
Closing the estate
After final distribution, file a Final Report (sometimes called a Declaration of Completion, Final Discharge, or similar) with the court documenting what was distributed and to whom. The court reviews and issues an Order of Discharge, which formally closes the estate and releases you from further duties.
Keep the estate records for at least 7 years after closure. If a creditor or tax authority ever comes back with a question, you'll need them.