Texas trust and estate accounting format

Detailed statutory contents

For trusts and estates, the Texas statutes list what each kind of account must contain rather than prescribing one form, so a good Texas accounting visibly covers each item. Summafolio uses the uniform principal-and-income layout and checks it against the lists below.

Trustees: Property Code §113.151 and §113.152

A beneficiary can make a written demand for a statement of accounts. If the trustee hasn't delivered it within 90 days, any beneficiary can sue to compel it, but a trustee isn't required to account more than once every 12 months unless a court orders it (Tex. Prop. Code §113.151). The statement must show (§113.152):

1. trust property that came to the trustee's knowledge or possession and wasn't previously listed;
2. a complete account of receipts, disbursements and other transactions, including their source and nature, with principal and income receipts shown separately;
3. a listing of all property being administered, with an adequate description of each asset;
4. the cash balance on hand and the name and location of the depository; and
5. all known liabilities.

Dependent administrations: Estates Code §359.001

In a court-supervised administration, the personal representative files a sworn account within 60 days after the first anniversary of qualifying, then annually (§§359.001–.002). Beyond receipts and disbursements (again with principal and income listed separately), the account must list claims allowed, paid, rejected and in suit; describe property, its condition and use, and rental terms; show cash on hand and its depository; and state that taxes have been paid, with amounts, dates and payees. Vouchers and a depository letter are attached (§359.003). The annual account must let the court rebuild the estate's position from the last account's balances (§359.002(b)). Guardians of the estate follow parallel rules in §1163.001.

Independent executors: §404.001 and §405.001

An independent administration has no annual court accounting. But 15 months after letters issue, any interested person can demand a sworn accounting showing the property received, its disposition, debts paid and still owing, property remaining and why administration should continue (§404.001). The executor has 60 days to comply before the demand can be enforced in court, and later demands can be made at intervals of at least 12 months. After two years, an interested person can petition for an accounting and distribution (§405.001). An independent executor can close with a verified closing report (§405.005).

Executor's commission

The standard commission is 5% of cash actually received and 5% of cash paid out, capped at 5% of the estate's gross fair market value. Nothing is allowed for receiving cash on hand at death, collecting life insurance or paying cash to heirs (§352.002). Summafolio computes it from the categorized transactions.

Principal and income

Texas Property Code chapter 116 is the Uniform Principal and Income Act (§116.001). Texas has not adopted the newer Uniform Fiduciary Income and Principal Act.

Frequently asked questions

Does a §404.001 accounting have to be filed with the court?

No. It's furnished to the person who demanded it. A copy is available on demand to other interested persons.

What does Summafolio leave for me to add?

The claims exhibit, the tax and bond-premium statements and the oath. The account has a notes section for them.

Samples and next steps

• Sample: Texas estate accounting21-page PDF and Excel workbook from a fictional matter.
• Guide: Principal and Income Act: Allocating Trust Receipts & ExpensesPlain-English explanation with citations.
• Free template: Estate accounting template (executor's account)Blank PDF and Excel. A template, not a court form.
• PricingOne price per accounting, every export included.
• How it worksFrom statements to a reconciled accounting.
• All states and formatsCompare the 14 state formats and the uniform format.

Other states

• California
• Florida
• New York
• Pennsylvania
• Illinois
• Ohio
• Georgia
• North Carolina
• Arizona
• Washington
• New Jersey
• Michigan
• Virginia
• Uniform format