Preparation of Receipt and Refunding Agreement

[Orez]

I am the sole heir and executrix of my mother's estate. I have been told that I need to prepare a Receipt and Refunding Agreement because I spent money from the estate. How do I write this? What are its contents?

 

[Michael Wechsler]

I'm not sure I understand why -- who told you so and why did they say you need it? These are usually done when there is more than one beneficiary or when the beneficiary is not the executor/executrix. A beneficiary signs it to promise to return money to the estate if the distribution is incorrect -- it is for the benefit of the executor who could be held personally liable for incorrect distributions.

 

[Orez]

Thanks for the response. The clerk of courts was the one who told me that I had to file the Receipt and Refunding agreement. I've spoken with an attorney who handles estates in my state. I received the same reaction as you gave me but was told that each county is different.

 

[Michael Wechsler]

Did you make all the facts clear to the clerk? You should speak to the clerk again and ask for the statute that requires it be filed -- not to be difficult but so that you could review it so that you could ensure full compliance. The clerk might not feel that you are challenging his/her wisdom!

 

[Orez]

Thanks for your input. After writing to and speaking with another person at the clerk of courts office, I was told that I did not need to submit the Receipt and Refunding agreement. I was able to complete the annual accounting.

 

[Michael Wechsler]

Excellent! Very glad to hear that you were able to get the accounting done with minimal hassle.