Chapter A. GENERAL INSTRUCTIONS

• Jurisdiction: Washington

A. GENERAL INSTRUCTIONS

1. Introduction. Various accounting re-cords are needed in most estates. An estate checking account should be opened by the personal representative in the name of the estate. If the balance in the estate checking account becomes greater than necessary to pay debts and expenses of the estate, a savings account or other short-term investment account should be opened by the personal representative in the name of the estate. Discretion must be used in selecting an investment for the excess funds. Separate account records should also be maintained for each income-producing asset such as a contract, mortgage, or note, and for each contract, mortgage, or note owing by decedent. Instructions for setting up records and for recording the entries are set forth below. Copies of some of the accounting records will be attached to the Final Report if filed with the court, and other records will be used in the preparation of the estate's tax returns.

2. Estate Cash Accounting.

(a) Accounting Programs. Various accounting programs are available to track estate transactions that follow Uniform Fiduciary Accounting protocol. If such a program is not available then set up a spreadsheet with column headings for the following:

Community Property Estate
Date
Description
Receipts
Disbursements
Principal Receipts
(Estate/Surviving Spouse/ Registered Domestic Partner)
Principal Disbursements
Income Receipts
Income Disbursements

Non-Community Property Estate
Date
Description
Receipts
Disbursements
Principal Receipts
Principal Disbursements
Income Receipts
Income Disbursements

See Examples in this chapter.

(b) Recording Entries. All cash receipts and disbursements should be entered in the accounting. All receipts and disbursements are listed chronologically and are separated as to principal and income. For a breakdown as to principal and income received or disbursed, separate records should be maintained for each asset. The separate records are described below. If community property is included in the estate, each item is separated as to the interest of the decedent and the interest of the surviving spouse/registered domestic partner. The initial entries will include cash on hand, transfer of account balances in checking accounts and savings accounts without right of survivorship, and dividend and salary checks on hand. If no cash is on hand to pay initial bills, the first deposit might be a loan to the...