Passing of Accounts
What is passing of accounts?
It is an accounting procedure whereby the estate administrator reports to the estate beneficiaries the following information:
1. assets received
2. management of the assets
3. the money received
4. the money spent and
5. the money left over to be divided among the beneficiaries.
The passing of account is needed to protect both the beneficiaries of an estate and the administrator who manages the affairs of the estate for the following reasons:
- The beneficiaries need to:
- know how much distribution he or she is to receive
- ensure the amount of the distribution he or she receives is correct and
- ensure the administrator of the estate has acted honestly and in the best interest of all beneficiaries.
- The administrator wants to be certain that the beneficiaries are satisfied and receives the amounts that are due to them.
This will require the work of a professional and we have the experience and expertise to do the necessary work.
What does the passing of accounts involve?
Passing of accounts is a reconciliation of the income and expenses and assets and liabilities.
And will include the following:
- A list of the assets for the estate on the date of death
- A capital receipts account, which accounts for the gross receipts received on the sale, redemption, or maturity of the assets in the estate. The account also shows any capital gains received on the sale of investments
- Capital disbursement account which accounts for the debts that have been paid against the estate account
- Revenue receipts account showing all interest, dividend received and all other periodic payments that are normally considered to be income
- Revenue disbursement account showing all payments made that are charged against revenue including tax payment and bank charges
- Investment account that shows the money paid out in the purchase of securities and money received on sale of securities
- Statement of all original assets and purchased securities that remained in the hands of the administrator at the end of the accounting period
- Statement of all debts that are owing but not paid at the end of the accounting period
- Administrator's claim for compensation.
We can prepare all the necessary documentation.
Phone or e-mail Now!
Gary Booth CA Professional Corp.
#406 - 555 Burnhamthorpe Rd. | Toronto, On | M9C 2Y3
Tel: 416-626-2727 | Fax: 416-621-7136