Illinois Probate Act 755 ILCS 5/24-2: Notice of Accounting - Effect
An executor or estate administrator is the type of representative that is responsible for managing the estate of a decedent. Anyone who wishes to serve as a representative must first file a petition with the Probate Court. If the court approves the petition, it will issue the petitioner a document called “letters testamentary” in the case of an executor or “letters of administration” in the case of an estate administrator. With the letters the representative has the legal power to move forward with the activities necessary to settle the decedent’s estate. Being appointed administrator also means that the petitioner must adhere to the legal requirements related to estate administration such as the requirement to file an accounting. If you have questions about the responsibilities of a representative, including the requirements of Illinois Probate Act, section 24-2- Notice of accounting - effect, contact a skilled Chicago estate administration attorney at the Law Offices of Stephen Bilkis & Associates who has the experience and resources to ensure that your accounting is properly filed.Requirement of Filing Accounting
The representative is required to file an accounting within 60 days after the expiration of 12 months after the issuance of letters. The court may set another date for filing the accounting if it sees fit. The estate accounting must include details on all assets that are part of the estate, income, disbursements, and distributions.
Assets. The accounting must include an inventory of assets in the estate at the time of the decedent’s death, along with the fair market value of each asset. This inventory must be accurate. If necessary, the representative can hire an appraiser and pay him or her a reasonable fee for appraising certain assets.
Income. The accounting must include details about any income. The representative has a duty to collect any money does the estate such as loans, rents, tax refunds, and benefits.
Disbursements. A disbursement is money or property that the representative pays out to cover debts owed by the decedent, and expenses related to the management of the estate. expenses and bills. Such expenditures must be carefully documented. The administrator must keep receipts and any other documentation for the date, amount, and purpose of the disbursement. As an experienced Chicago estate administration lawyer will explain, the representative is required to pay all valid claim that are timely filed. The administrator must understand the rules related to the priority of claims. This is particularly the case where the estate may not have sufficient assets to pay all creditors. For example, under Illinois Probate Act, section 18-10- Classification of claims against decedent's estate, funeral and burial expenses, expenses of administration, and statutory custodial claims are first priority and must be paid before all other claims.
Paying creditors in the wrong order may result in liability on the part of the representative. The accounting must include details of all disbursements.
Distributions. Once all bills are paid, the representative can then distribute whatever is left in the estate to the beneficiaries or heirs. The process of asset distribution may involve the representative simply writing checks to distributees. The process may also require the representative to sell assets at the direction of the will, and distribute the proceeds to the beneficiaries. The representative must keep detailed records of distributions and include that information in the accounting.Notice of Accounting
Under Illinois Probate Act, section 24-2- Notice of accounting - effect, when a representative submit an accounting, notice must be sent to unpaid creditors as well as other interested parties such as beneficiaries or heirs. If the account is approved it is binding on all persons to whom the notice was given. Notice is not required to any person from whom a receipt in full is exhibited to the court or who waives notice. To ensure that all notice requirements are followed, contact an experienced estate administration attorney in Chicago.Related Statutory Provisions
- Duty to account: Illinois Probate Act, 755 ILCS 5/24-1
- Order of distribution, abatement and contribution on settlement of estate: Illinois Probate Act, 755 ILCS 5/24-3
- Distribution before the expiration of the period when claims are barred: Illinois Probate Act, 755 ILCS 5/24-4
- Distribution on presumption of death - deposit in court or in depositaries : Illinois Probate Act, 755 ILCS 5/24-5
Notice of the hearing on any account of a representative of a decedent's estate shall be given as the court directs to unpaid creditors and to all other interested persons. If the account is approved by the court upon the hearing, in the absence of fraud, accident or mistake, the account as approved is binding upon all persons to whom the notice was given. No notice, however, shall be required under this Section either (a) to any person from whom a receipt in full is exhibited to the court or who waives notice, or (b) whenever a trustee of a trust is an interested person, to any beneficiary of the trust by reason of the beneficiary's interest in the trust, but a trustee given notice of an account under this Section shall be liable to the trust beneficiaries for any breach of fiduciary duty by the trustee in connection with the account.Contact the Law Offices of Stephen Bilkis & Associates
If you are a representative, creditor, beneficiary, or heir in an estate matter and you have questions about or objections to the required estate accounting, it is important that you discuss the process with an experienced estate administration attorney serving Chicago who understands the requirements related filing accountings, including the requirements of the Illinois Probate Act, section 24-2- Notice of accounting - effect. The attorneys at the Law Offices of Stephen Bilkis & Associates have years of experience successfully representing clients in matters related to estate administration, estate litigation, and other estate matters. Contact an attorney in our office attorneys at 855-454-5529 to schedule a free, no obligation consultation regarding your case. We serve individuals throughout Chicago.