Who this is for

Record-Keeping for Executors and Trustees

Being named executor of a parent’s will, or successor trustee of their trust, means taking on a legal role with a duty to account for every dollar. The legal side belongs with an attorney. The record-keeping side, which is most of the work, is bookkeeping, and it can be done properly from the start.

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What the role asks of you

An executor or trustee has to find out what the person owned and owed, keep those assets safe, pay legitimate debts and expenses, and distribute what is left according to the will or the trust, keeping records throughout. Many states require an executor to file an inventory and, at the end, an accounting with the probate court. Beneficiaries of a trust are usually entitled to regular reports. An attorney advises on what your state and the documents require.

What the attorney does not usually do is open the mail, reconcile the estate account each month and keep the ledger. That is where your bookkeeper helps.

What your bookkeeper can keep for you

An inventory of accounts and assets, built from statements, mail and the last tax returns
A separate ledger for the estate or trust account, reconciled every month
Bills of the estate paid on your instruction from the estate account
Receipts and disbursements recorded in the format the attorney or court asks for
Final household bills closed out and refunds tracked
A year-end package for the tax preparer filing the final and estate returns

You remain the executor or trustee, with the decisions and the legal responsibility. Your bookkeeper keeps the records and follows your instructions.

Keep the estate’s money separate

The single most important record-keeping rule for an executor is never to mix estate money with your own. The attorney will usually have you open an estate account under its own tax ID, and every receipt and payment should go through it. Paying a funeral bill from your own card and reimbursing yourself later is common and usually fine, so long as it is recorded with the receipt.

When the records start in a mess

Often the parent’s own finances were not in good order in the last years of their life, and the executor inherits that as well. Your bookkeeper can rebuild the final months from bank statements so the starting inventory is complete. Where a reconstruction is needed, it is quoted as a deposit up front and then monthly until the records are current.

Executors and Trustees Who Need the Records in Order: common questions

Do I still need an attorney?

In most estates, yes. Probate filings, notices to creditors and the rules on distributions vary by state and are legal work. A bookkeeper makes that work cheaper by handing the attorney organized records rather than a box.

Does the court accept a bookkeeper’s records?

The accounting is filed by you or your attorney. A reconciled ledger with statements behind every figure is what makes it straightforward to prepare.

What records does the tax preparer need for the final returns?

The final personal return, and often an estate or trust income return, need the year’s income, expenses and distributions. Your bookkeeper gives the preparer those records, organized by return and by year.

What your bookkeeper can take on

Also written for Adult Children Managing a Parent's Bills, Long-Distance Caregivers, Siblings Sharing the Job, After a Spouse Dies, A Parent Moving to Assisted Living, Older Adults Who Want Help With Their Own Bills and Families Recovering From a Scam.

Tell us about the estate or trust

A few lines is enough: who needs the help, what is piling up, and whether anything is urgent. A person replies within one business day to set up a short, free call. Requests answered within one business day · Calls Mon–Fri, 9am–5pm Eastern Or call (888) 833-9039 if you would rather talk first.