Texas Wills and Probate Law
ANNUAL ACCOUNT AND OTHER EXHIBITS AND REPORTS
TEXAS ESTATES CODE, TITLE 2. SUBTITLE H. CHAPTER 359.
ANNUAL ACCOUNT AND OTHER EXHIBITS
§ 359.001. ACCOUNT OF ESTATE REQUIRED.
(a) Not later than the 60th day after the first anniversary of the date a personal representative qualifies and receives letters testamentary or of administration to administer a decedent's estate under court order, unless the court authorizes an extension, the representative shall file with the court an account consisting of a written exhibit made under oath that lists all claims against the estate presented to the representative during the 12-month period following the representative's qualification and receipt of letters. The exhibit must specify:
(1) the claims allowed by the representative;
(2) the claims paid by the representative;
(3) the claims rejected by the representative and the date the claims were rejected; and
(4) the claims for which a lawsuit has been filed and the status of that lawsuit.
(b) The account must:
(1) show all property that has come to the personal representative's knowledge or into the representative's possession that was not previously listed or inventoried as estate property;
(2) show any changes in estate property that have not been previously reported;
(3) provide a complete account of receipts and disbursements for the period covered by the account, including the source and nature of the receipts and disbursements, with separate listings for principal and income receipts;
(4) provide a complete, accurate, and detailed description of:
(A) the property being administered;
(B) the condition of the property and the use being made of the property; and
(C) if rented, the terms on which and the price for which the property was rented;
(5) show the cash balance on hand and the name and location of the depository where the balance is kept;
(6) show any other cash held in a savings account or other manner that was deposited subject to court order and the name and location of the depository for that cash;
(7) provide a detailed description of the personal property of the estate that shows how and where the property is held for safekeeping;
(8) provide a statement that during the period covered by the account all tax returns due have been filed and all taxes due and owing have been paid, including:
(A) a complete account of the amount of the taxes;
(B) the date the taxes were paid; and
(C) the governmental entity to which the taxes were paid;
(9) if on the filing of the account a tax return due to be filed or any taxes due to be paid are delinquent, provide the reasons for, and include a description of, the delinquency; and
(10) provide a statement that the representative has paid all the required bond premiums for the accounting period.
(c) For bonds, notes, and other securities, the description required by Subsection (b)(7) must include:
(1) the names of the obligor and obligee or, if payable to bearer, a statement that the bond, note, or other security is payable to bearer;
(2) the date of issue and maturity;
(3) the interest rate;
(4) the serial number or other identifying numbers;
(5) the manner in which the property is secured; and
(6) other information necessary to fully identify the bond, note, or other security.
§ 359.002. ANNUAL ACCOUNT REQUIRED UNTIL ESTATE CLOSED.
(a) Not later than the 60th day after each anniversary of the date a personal representative of the estate of a decedent qualifies and receives letters testamentary or of administration to administer the decedent's estate under court order, unless the court authorizes an extension, the representative shall file an annual account conforming to the essential requirements of Section 359.001 regarding changes in the estate assets occurring during the 12-month period after the date the most recent previous account was filed.
(b) The annual account must be filed in a manner that allows the court or an interested person to ascertain the true condition of the estate, with respect to money, securities, and other property, by adding to the balances forwarded from the most recent previous account the amounts received during the period covered by the account and subtracting the disbursements made during that period.
(c) The description of property sufficiently described in an inventory or previous account may be made in the annual account by reference to that description.
§ 359.003. SUPPORTING VOUCHERS AND OTHER DOCUMENTS ATTACHED TO ACCOUNT.
(a) The personal representative of an estate shall attach to each annual account:
(1) a voucher for each item of credit claimed in the account or, to support the item in the absence of the voucher, other evidence satisfactory to the court;
(2) an official letter from the bank or other depository where the estate money on hand is deposited that shows the amounts in general or special deposits; and
(3) proof of the existence and possession of:
(A) securities owned by the estate or shown by the account; and
(B) other assets held by a depository subject to court order.
(b) An original voucher submitted to the court may on application be returned to the personal representative after approval of the account.
(c) The court may require:
(1) additional evidence of the existence and custody of the securities and other personal property as the court considers proper; and
(2) the personal representative at any time to exhibit the securities and other personal property to the court or another person designated by the court at the place where the securities and other personal property are held for safekeeping.
§ 359.004. METHOD OF PROOF FOR SECURITIES AND OTHER ASSETS.
(a) The proof required by Section 359.003(a)(3) must be by:
(1) an official letter from the bank or other depository where the securities or other assets are held for safekeeping, and if the depository is the personal representative, the official letter must be signed by a representative of the depository other than the one verifying the account;
(2) a certificate of an authorized representative of a corporation that is surety on the personal representative's bonds;
(3) a certificate of the clerk or a deputy clerk of a court of record in this state; or
(4) an affidavit of any other reputable person designated by the court on request of the personal representative or other interested party.
(b) The certificate or affidavit described by Subsection (a) must:
(1) state that the affiant has examined the assets that the personal representative exhibited to the affiant as assets of the estate;
(2) describe the assets by reference to the account or in another manner that sufficiently identifies the assets exhibited; and
(3) state the time and the place the assets were exhibited.
(c) Instead of attaching a certificate or an affidavit, the personal representative may exhibit the securities to the judge, who shall endorse on the account, or include in the judge's order with respect to the account, a statement that the securities shown in the account as on hand were exhibited to the judge and that the securities were the same as those shown in the account, or note any variance.
(d) If the securities are exhibited at a location other than where the securities are deposited for safekeeping, that exhibit is at the personal representative's own expense and risk.
§ 359.005. VERIFICATION OF ACCOUNT.
The personal representative shall attach to the annual account the representative's affidavit that the account contains a correct and complete statement of the matters to which it relates.
§ 359.006. ADDITIONAL ACCOUNTS.
(a) At any time after the expiration of 15 months from the date original letters testamentary or of administration are granted to an executor or administrator, an interested person may file a written complaint in the court in which the estate is pending to have the representative cited to appear and make a written exhibit under oath that sets forth fully, in connection with previous exhibits, the condition of the estate.
(b) If it appears to the court, from the exhibit or other evidence, that the executor or administrator has estate funds in the representative's possession that are subject to distribution among the creditors of the estate, the court shall order the funds to be paid out to the creditors in accordance with this title.
(c) A personal representative may voluntarily present to the court the exhibit described by Subsection (a). If the representative has any estate funds in the representative's possession that are subject to distribution among the creditors of the estate, the court shall issue an order similar to the order entered under Subsection (b).
ACTION ON ANNUAL ACCOUNT
§ 359.051. FILING AND CONSIDERATION OF ANNUAL ACCOUNT.
(a) The personal representative of an estate shall file an annual account with the county clerk. The county clerk shall promptly note the filing on the judge's docket.
(b) At any time after the account has remained on file for 10 days following the date the account is filed, the judge shall consider the account and may continue the hearing on the account until fully advised on all account items.
(c) The court may not approve the account unless possession of cash, listed securities, or other assets held in safekeeping or on deposit under court order has been proven as required by law.
§ 359.052. CORRECTION OF ANNUAL ACCOUNT.
(a) If the court finds an annual account is incorrect, the account must be corrected.
(b) The court by order shall approve an annual account that is corrected to the satisfaction of the court and shall act with respect to unpaid claims in accordance with Sections 359.053 and 359.054.
§ 359.053. ORDER FOR PAYMENT OF CLAIMS IN FULL.
After approval of an annual account as provided by Section 359.052, if it appears to the court from the exhibit or other evidence that the estate is wholly solvent and that the personal representative has in the representative's possession sufficient funds to pay every character of claims against the estate, the court shall order immediate payment of all claims allowed and approved or established by judgment.
§ 359.054. ORDER FOR PRO RATA PAYMENT OF CLAIMS.
After approval of an annual account as provided by Section 359.052, if it appears to the court from the account or other evidence that the funds on hand are not sufficient to pay every character of claims against the estate or if the estate is insolvent and the personal representative has any funds on hand, the court shall order the funds to be applied:
(1) first to the payment of any unpaid claims having a preference in the order of their priority; and
(2) then to the pro rata payment of the other claims allowed and approved or established by final judgment, considering:
(A) claims that were presented before the first anniversary of the date administration was granted; and
(B) claims that are in litigation or on which a lawsuit may be filed.
§ 359.101. PENALTY FOR FAILURE TO FILE ANNUAL ACCOUNT.
(a) If the personal representative of an estate does not file an annual account required by Section 359.001 or 359.002, any person interested in the estate on written complaint, or the court on the court's own motion, may have the representative cited to file the account and show cause for the failure.
(b) If the personal representative does not file the account after being cited or does not show good cause for the failure, the court on hearing may:
(1) revoke the representative's letters testamentary or of administration; and
(2) fine the representative in an amount not to exceed $500.
(c) The personal representative and the representative's sureties are liable for any fine imposed and for all damages and costs sustained by the representative's failure. The fine, damages, and costs may be recovered in any court of competent jurisdiction.
§ 359.102. PENALTY FOR FAILURE TO FILE EXHIBIT OR REPORT.
(a) If a personal representative does not file an exhibit or report required by this title, any person interested in the estate on written complaint filed with the court clerk may have the representative cited to appear and show cause why the representative should not file the exhibit or report.
(b) On hearing, the court may:
(1) order the personal representative to file the exhibit or report; and
(2) unless good cause is shown for the failure, revoke the representative's letters testamentary or of administration and fine the representative in an amount not to exceed $1,000.