Texas Probate Accounting: What Executors Must Report and When

Inventory and Affidavit Filing Duties

Texas Estates Code § 309.051 requires a verified inventory and appraisement, with the list of claims owed to the estate required by § 309.052. An eligible independent executor may file an affidavit in lieu of the inventory under § 309.056. That option still requires preparing the inventory.

Deadline: Before the 91st day after the personal representative qualifies, unless the court grants more time. The court may require an earlier filing for good cause. Qualification and appointment can occur on different dates, so check the probate record.

Values and appraisals: Section 309.051 requires the fair market value of each inventory item as of the date of death. If the court appoints appraisers, the representative determines those values with their help. Keep valuation records for estate reporting and ask a tax professional how separate tax-basis rules apply to the property.

Independent administration note: Independent administration does not remove the inventory duty. The court-filed inventory is subject to review under § 309.054. The affidavit option below changes what is filed publicly; it does not remove the underlying inventory or disclosure requirements.

Alternative, affidavit in lieu of inventory: Under § 309.056, an independent executor may use this option when the will does not expressly prohibit it, the estate has no unpaid debts other than secured debts, taxes, and administration expenses, and the required beneficiaries have received a verified inventory and appraisement. The statute has limited exceptions to automatic delivery, including a written waiver of receipt. The affidavit is due within the same filing period, including any court extension. An interested person can still request the inventory in writing. Beneficiary agreement alone does not establish eligibility.

Independent vs. Dependent Administration: Different Rules

The accounting duties depend on the type of administration.

Independent Administration

Regular updates can show beneficiaries which records are available and which transactions remain unfinished. Those updates do not replace an accounting required under the statute.

Dependent Administration

The court reviews each filing and may schedule hearings. This is one reason dependent administration is slower and more expensive than independent administration.

What Goes in a Probate Accounting

These record groups help organize an estate accounting. For an independent-executor demand, § 404.001 also requires disclosure of debts and expenses still owed and facts explaining why the estate should remain open. Court-supervised annual accounts have their own requirements under Chapter 359.

1. Beginning Inventory Value

The starting point for the accounting period: either the value from the filed inventory, or the ending balance from the previous accounting.

2. Receipts

3. Disbursements

4. Distributions and Ending Balance

The assets or amounts distributed to each beneficiary, and the remaining balance or assets on hand. Reconcile the ending balance to the property still held, including any reserves or transfers that remain unfinished.

When Beneficiaries Can Demand an Accounting

Under Texas Estates Code § 404.001, a person interested in the estate may demand an accounting from the independent executor after 15 months have passed since letters first issued to any personal representative. Later demands must be at least 12 months apart. Keep the demand and proof of receipt with the estate records.

The accounting is a detailed written exhibit, sworn and signed by the executor. If the executor does not comply within 60 days after receiving an authorized demand, the person who made it may ask the probate court to compel compliance.

If an executor refuses to account or provides a materially false accounting, the court can remove them and require them to repay the estate for any losses.

The Final Accounting and Closing the Estate

Independent Administration

Sections 405.004–405.007 set out the closing-report and notice paths. They require handling known debts to the extent assets permit, distributing remaining assets, and having no pending litigation. A notice of closing must first go to every distributee, with proof of delivery filed. Under § 405.007, closing occurs 30 days after filing unless an interested person objects. Closing this way does not erase liability for mismanagement or false statements.

Judicial discharge is a separate procedure under § 405.003. A person interested in the estate may also petition for accounting and distribution under § 405.001 after two years have passed since letters first issued. The available path depends on the estate and the relief requested.

Dependent Administration

Dependent administration requires filing a final accounting with the court for review and approval. Once the court approves the final accounting and all matters are resolved, it issues an order closing the estate and discharging the administrator.

Protecting Yourself as Executor

Keep records from day one. Create a dedicated estate bank account and run all estate transactions through it. Never mix estate funds with personal funds. Keep receipts, invoices, and documentation for every transaction.

Date everything. Note when you received a claim, when you paid a bill, when you made a distribution. Timelines matter in accounting disputes.

Keep beneficiary communications with the records. Save updates, questions and replies so the accounting explains what was shared.

Track valid demands. For a demand authorized by § 404.001, record the receipt date and organize the accounting records. Failure to comply within 60 days can lead to a court action.

Document difficult decisions. If you rejected a creditor's claim, negotiated a debt, or decided not to pursue a potential asset, write down your reasoning at the time. A contemporaneous memo is far more credible than a later explanation.

Frequently Asked Questions

Does an executor have to file an accounting with the court?

Independent executors do not ordinarily file periodic court accounts, but a valid § 404.001 demand requires an accounting to the interested person. Failure to comply within 60 days can lead to a court action. Dependent administrations require annual court accounts under Chapter 359 and a final account for closing.

Can beneficiaries waive the right to an accounting?

A family agreement does not replace statutory filing duties. Section 309.056 permits certain beneficiaries to waive receipt of the inventory in writing, while leaving other disclosure rights in place. A proposed accounting waiver or release needs review under the rules for that administration and closing procedure. Section 405.002 also bars requiring a waiver or release as a condition of delivering property to a distributee.

What if the executor fails to send an accounting?

If the executor does not comply with an authorized § 404.001 demand within 60 days after receipt, the person who made the demand may ask the probate court to compel compliance. Other remedies depend on the facts and applicable law.

How detailed does the accounting need to be?

It should be specific enough that a reasonable person can trace every dollar in and every dollar out. Line-item detail by transaction is better than summary totals. When in doubt, provide more detail, not less.