California Probate Accounting: Requirements & Deadlines

Probate accounting in California requires the personal representative to document every asset, every transaction, and every distribution. The court reviews this accounting before allowing the estate to close. Proper accounting protects beneficiaries and shields the personal representative from liability.

Overview of Accounting Requirements

California probate involves two main accounting obligations:

Inventory and Appraisal - Due within 4 months of appointment
Final Accounting - Filed with the Petition for Final Distribution

Both require detailed documentation and court review.

Inventory and Appraisal

What It Is

The Inventory and Appraisal is a complete list of all estate assets and their values as of the date of death. This establishes the starting point for estate administration.

Deadline

You must file the Inventory and Appraisal within 4 months of receiving Letters Testamentary (or Letters of Administration).

Missing this deadline can result in:

Court sanctions
Removal as personal representative
Personal liability

Required Forms

DE-160: Inventory and Appraisal The main form listing assets and values.

DE-161: Inventory and Appraisal Attachment Additional pages for listing more assets.

What to Include

List all assets the decedent owned at death:

Real Property

Address and legal description
Fair market value at date of death

Financial Accounts

Bank accounts (name of bank, account number, balance)
Investment accounts
Retirement accounts in the estate

Personal Property

Vehicles (make, model, year, VIN, value)
Jewelry, art, collectibles
Household furnishings
Business interests

Other Assets

Debts owed to the decedent
Pending lawsuits
Intellectual property
Digital assets

The Probate Referee

California requires a probate referee to appraise most assets. The referee is a court-appointed appraiser who determines fair market value.

Assets the referee appraises:

Real estate
Stocks and bonds
Business interests
Other assets requiring professional valuation

Assets you value yourself:

Cash
Bank account balances (use statement balance)
Items appraised by another professional (with court permission)

Referee Timeline

After you submit asset information to the probate referee:

Referee has 60 days to complete appraisal
Referee returns signed Inventory and Appraisal
You file the completed form with the court

Referee Fees

Probate referees charge 0.1% of the value of assets they appraise:

Minimum fee: $75
Maximum fee: $10,000 per estate

Supplemental Inventory

If you discover additional assets after filing the initial Inventory and Appraisal, file a Supplemental Inventory (Form DE-182) listing the newly discovered assets.

There is no deadline for supplemental inventories, but file promptly after discovery.

The Final Accounting

What It Is

The final accounting shows everything that happened during estate administration:

What came in (assets collected)
What went out (debts paid, expenses paid)
What is left (balance for distribution)

When to File

File the final accounting with the Petition for Final Distribution when you are ready to close the estate. This is typically after:

The creditor claims period has closed
All debts and taxes are paid
Assets are ready for distribution

What to Include

Summary of Receipts

Assets collected
Income received during administration
Sales proceeds

Summary of Disbursements

Debts paid
Funeral expenses
Administrative costs
Attorney and executor fees
Taxes paid

Gains and Losses

Assets that increased in value
Assets that decreased in value
Losses on sales

Property on Hand

Assets remaining for distribution
Cash balance

Proposed Distribution

Who receives what
Specific assets to each beneficiary

Accounting Formats

California accepts two accounting formats:

Standard Account Traditional format showing receipts, disbursements, gains, losses, and balance.

Account Under Independent Administration Simplified format available for estates with IAEA authority.

Supporting Documentation

Keep records to support every line item:

Bank statements
Receipts for payments
Bills and invoices
Sales contracts
Tax returns
Appraisals

The court may request documentation to verify your accounting.

Waiver of Account

Beneficiaries can waive the formal accounting requirement by signing Form DE-250 (Waiver of Account).

When Waiver Makes Sense

All beneficiaries are adults
All beneficiaries trust the personal representative
The estate is straightforward
Everyone agrees on the distribution

Advantages of Waiver

Saves time (no court review of accounting)
Reduces attorney fees
Faster distribution

Requirements

All beneficiaries must sign the waiver. If any beneficiary refuses, a full accounting is required.

Court Review

What the Court Looks For

The court reviews the accounting to verify:

All assets are accounted for
Disbursements were proper
Calculations are correct
Distribution follows the will or intestate law

Objections

Beneficiaries can object to the accounting if they believe:

Assets are missing
Expenses were improper
Fees are excessive
Distribution is incorrect

The court holds a hearing to resolve objections.

Approval

Once approved, the court issues an Order for Final Distribution. This authorizes you to distribute assets and close the estate.

Record Keeping During Administration

What to Track

From day one, maintain detailed records:

Income Log

Date received
Source
Amount
Account deposited to

Expense Log

Date paid
Payee
Amount
Purpose
Check number or payment method

Asset Register

Asset description
Value at death
Current value
Location
Status (held, sold, distributed)

Organization Tips

Open a dedicated estate bank account
Deposit all estate funds to this account
Pay all expenses from this account
Keep receipts for everything
Maintain separate folders for each asset category

Common Mistakes

Commingling Funds

Never mix estate funds with personal funds. Use a separate estate account.

Missing Deadlines

The 4-month inventory deadline is strict. Mark it on your calendar.

Incomplete Records

Vague entries like "miscellaneous expenses" invite questions. Be specific.

Failure to Account for All Assets

Every asset on the inventory must be accounted for in the final accounting.

Improper Distributions

Distributing assets before court approval can create liability.

Frequently Asked Questions

What is the deadline for the inventory and appraisal?

Four months from the date Letters Testamentary or Letters of Administration are issued.

Can I extend the inventory deadline?

You can petition the court for an extension, but you need a good reason and must file before the deadline passes.

Who prepares the accounting?

The personal representative is responsible, though most work with a probate attorney or CPA to prepare it.

What if beneficiaries disagree with the accounting?

They can file objections with the court. A hearing will be held to resolve disputes.

Are attorney fees included in the accounting?

Yes. Statutory attorney and executor fees must be listed in the accounting for court approval.

Related Guides

Sources:

California Probate Code Sections 8800-8804 (Inventory)
California Probate Code Sections 10900-10954 (Accounting)
California Judicial Council Forms DE-160, DE-161, DE-250

Last Updated: January 2026. This guide provides general information about California probate accounting. Consult with a California probate attorney for advice specific to your situation.