Basic Instructions for Final (or Annual) Accounting
BASIC INSTRUCTIONS FOR FINAL (OR ANNUAL) ACCOUNTING (APPOINTMENT REQUIRED)
Within one year from the date of qualification, a final account must be filed (Form No. AOC-E-506). This is a detailed accounting of total assets received, debts paid, and distribution to the beneficiaries/heirs. If you are unable to locate the forms provided to you at qualification, you can obtain the forms by going to nccourts.org or ncfcc.us. Please also refer to the “Estate Procedure” handout provided at qualification (AOC-E-850).
- The accounting period for a final account will be from the date of qualification to the date of final distribution.
- You will begin with the total value of personal property from the Inventory.
- LOSS FROM SALE OF PERSONAL PROPERTY– This section will indicate if there was a loss on the sale of personal property when compared to the value shown on the Inventory. Please note that you may need to provide a schedule of losses if there are multiple items sold, as the form does not provide room for same.
- RECEIPTS are additional money and/or assets received since the Inventory. These will be listed on the back of the final account form under Receipts – by date received, who it was received from, a description and the amount. The total of these receipts will be added to the Personal Property on Inventory balance on the front of the form to determine the total assets of the estate.
- DISBURSEMENTS are the bills or debts paid on behalf of the estate. These will be listed on the back of the form under Disbursements – by date paid, to whom it was paid to, a description and the amount. You will be required to present a canceled check image or paid receipt, from the person receiving the disbursement. The total disbursements should be entered on the front and subtracted from Total Assets to determine the balance to be distributed to the beneficiaries.
- BALANCE HELD OR INVESTED – This section does not apply unless filing an annual account. If filing an annual account, the balance(s) and/or assets held at the end of the accounting period must be verified by providing a copy of the bank statement, brokerage statement, etc.
- DISTRIBUTION to the beneficiaries will be shown on the back of the final account form by date, name of beneficiary and an itemization of each beneficiary’s distribution. You will be required to present an original receipt from the beneficiary or a canceled check image for any cash distribution. Please note that all assets must be transferred out of the decedent’s name prior to filing a final account
- An Estate Tax Certification (Form No. AOC-E 212) OR an Inheritance and Estate Tax Certificate (issued by the North Carolina Department of Revenue) will need to be completed by the time you file the final account.
- A fee will be due when the account is filed. It will be assessed at 40¢ per one hundred dollars on the new money and/or assets received (Receipts) into the estate, with a $15.00 minimum fee. If filing a final account, payment must be made in the form of cash, certified funds, credit card or attorney trust or firm check (Note: A processing fee will be charged for the use of a credit card).
- The account must be in balance.
The same requirements apply to annual accounts.
NOTE: This is only a brief outline of this Court’s requirements for filing your annual or final account. It is not intended to cover any administration steps or legal requirements. It may be in your best interest to retain legal counsel.
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