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Texas Probate - Is an Independent Executor required to file a Closing Report or Affidavit? Are there benefits in doing this?
Anonymous4 views6 answers
As Independent Executor in Texas I have completed: Inventory, Appraisal, List of Claims filed and approved by Probate Court. Debts of Estate and all taxes paid. Remaining Estate property distributed to beneficiaries. Beneficiaries signed Receipt of Distribution. Beneficiaries signed Release of Estate and me as Executor. Beneficiaries signed Release of me individually from any rights, interests or claims to Estate/Assets.
I thought I had done all that was required by Probate Court. Now my Lawyer wants me to file a Verified Closing Report with Probate Court. Did not think this was necessary as an Independent Executor in Texas - please verify? Are there advantages to doing this since I have Receipt and Release documents? Is it worth the added expense? Thank you for any input.
Generally, Indpendent Administrations are not formally closed in Texas. I would ask your attorney what this will accomplish that the releases do not already accomplish. The downside is something unexpected in the future turns up, then administration has to be re-opened. For example, has statute of limitations run on all of the decedent's income tax returns or did you file Form 4810 for for early assessment of the decedent's income tax liability? Who is going to pay for Verfied Closing Report? You said all assets have been distributed?
I agree with my colleagues. This forum is set up for general helpful information, but that is no substitute for advice of counsel who is involved in the case and knows all the facts and circumstances. Perhaps you should sit down with your attorney and discuss your concerns in greater detail. The attorney-client relationship is supposed to be a cooperative "partnership" to achieve the best result possible. Good luck!
Best to rely on the advice of your counsel, as s/he is intimately familiar with the facts and circumstances of your particular case.
But generally/usually I do not advise clients to close independent administrations as there remains the possibility of an unknown asset being discovered. I have closed in situations where creditors need to be cut off and/or beneficiaries continue to question the propriety of distributions or the acts of the executor. So, in sum- there is a good case to be made for both, depending on the facts and circumstances.
I agree with my colleague, as this is what I have heard, as well. You do have a lawyer for a reason, however, and I would rely on his/her advice or at least discuss your concerns in more detail.
James Frederick
Largely echoing my colleagues comments, but I would add that formally closing an independent administration is rare and I personally only recommend it when 1) there have been disputes during administration or one of the beneficiaries is likely to cause discord; and 2) a beneficiary refuses to sign a release. If the release are in good form, I don't understand why you would pay to formally close the administration. But, ask your own attorney: he may have a good reason for the recommendation that I have not contemplated.
