Texas Probate Accounting: What Executors Must Report and When

One of the core duties of a Texas executor or administrator is keeping — and sharing — a clear financial record of the estate. Beneficiaries have a legal right to know what was in the estate, what was received and spent, and how the final distributions were calculated. An executor who fails to account properly faces court proceedings, personal liability, and potential removal.

This guide covers the Texas accounting requirements for both independent and dependent administration, what an accounting must contain, and how the estate is formally closed.

Why Accounting Matters

The accounting requirement is rooted in the executor's fiduciary duty. You are managing someone else's property on behalf of the estate and its beneficiaries. Transparency is not optional.

Accounting also protects the executor. A well-documented accounting demonstrates that you followed the rules, paid debts in the correct order, and distributed assets as directed by the will or Texas law. Without records, you are vulnerable to claims that you mismanaged or misappropriated estate funds.

The Inventory: Your First Mandatory Filing

Before any formal accounting is due, the executor must file an inventory of all estate assets with the probate court. This is required by Texas Estates Code § 309.051.

Deadline: Within 90 days of the date the executor is appointed by the court.

Contents of the Inventory:

All real property in the estate, with a legal description and estimated fair market value as of the date of death
Personal property of significant value (bank accounts, investment accounts, vehicles, jewelry, art, business interests, retirement accounts in the estate's name)
Any property the estate has a claim to (money owed to the deceased, pending insurance proceeds, etc.)

Appraisals: The executor may hire a court-appointed or independent appraiser for property that is difficult to value — closely held business interests, real estate, collectibles, or other non-publicly-traded assets. For real estate, a professional appraisal establishes both the fair market value for the inventory and the stepped-up basis for capital gains purposes when the property is later sold. Get appraisals done promptly; the stepped-up basis is set as of the date of death.

Independent administration note: In most Texas independent administrations, the inventory is filed with the court but does not require court approval before the executor can proceed. It is a disclosure document, not a request for permission.

Alternative — Affidavit in Lieu of Inventory: In some cases, all distributees may agree to waive the court-filed inventory and accept an affidavit instead. This option under Texas Estates Code § 309.056 keeps some estate information out of the public record, which can be valuable in sensitive situations.

Independent vs. Dependent Administration: Different Rules

The accounting obligations differ significantly depending on the type of administration.

Independent Administration

Texas Estates Code § 404.001 governs accounting in independent administration. An independent executor is not required to file periodic accountings with the probate court. However:

Any distributee (person who stands to receive from the estate) may demand a written accounting at any time
The executor must respond to that demand within 60 days of receiving it
The accounting must cover the period since the last accounting (or since the start of administration, if none has been done)

In practice, most independent administrations involve informal communication with beneficiaries throughout the process. Providing regular updates — even short email summaries — is good practice and reduces the likelihood that a beneficiary will formally demand an accounting.

Dependent Administration

Dependent administration operates under much closer court supervision. The administrator must:

File periodic accountings with the court at intervals ordered by the judge (typically annually)
Obtain court approval before taking many actions, including paying large debts or selling estate property
File a final accounting before the estate can be closed

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

Whether produced in response to a beneficiary demand or required by a court, a proper Texas estate accounting has four main components:

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

All assets and income received by the estate during the accounting period:

Cash collected from bank accounts, investment accounts, and other financial assets
Income earned by estate assets after death (interest, dividends, rent)
Proceeds from the sale of estate property
Insurance proceeds paid to the estate
Tax refunds received

3. Disbursements

All payments made from estate funds:

Funeral expenses paid
Debts and creditor claims paid (note the priority class of each)
Attorney fees and executor compensation
Court filing fees, appraisal costs, and other administration expenses
Tax payments (final income tax, estate income tax if applicable)
Partial distributions made to beneficiaries during administration

4. Distributions and Ending Balance

The assets or amounts distributed to each beneficiary, and the remaining balance or assets on hand. The accounting should reconcile to zero (or close to zero) at the end of the final accounting.

When Beneficiaries Can Demand an Accounting

Under Texas Estates Code § 404.001, any distributee of an independent administration can demand a written accounting at any time. The demand should be in writing to create a clear record.

The executor has 60 days to provide the accounting after a valid demand. If the executor fails to respond, the distributee can petition the probate court to compel one.

What the accounting must cover:

All property belonging to the estate
All property received by the executor
All property sold, with the price, terms, and date of each sale
All payments, disbursements, and expenses
All property remaining in the estate and its current status

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

Texas independent administrations typically close without a formal court order. The executor:

Resolves all creditor claims
Pays all taxes and expenses
Makes final distributions to beneficiaries
Provides (or the beneficiaries waive) a final accounting
May file a notice of closing statement with the court under Texas Estates Code § 405.012

This closing process can be quiet — no court hearing required. The executor simply completes their duties and the estate is done.

However, if a beneficiary wants court confirmation that the administration is complete and the executor is discharged, they can request a formal closing order.

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.

Communicate with beneficiaries regularly. An informed beneficiary is less likely to demand a formal accounting. A brief monthly update can prevent most disputes.

Respond promptly to demands. If a beneficiary demands an accounting, start compiling it immediately. The 60-day deadline runs whether or not you are ready.

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?

In independent administration, no — unless the court orders one or a beneficiary demands it and the executor fails to respond, leading to a court petition. In dependent administration, yes, periodic court filings are required.

Can beneficiaries waive the right to an accounting?

Yes. If all distributees agree in writing, they can waive the accounting requirement. This is sometimes done when there is full family trust and everyone is in regular communication.

What if the executor fails to provide an accounting?

A distributee can petition the probate court to compel the accounting. The court can order the executor to comply and, if the executor has mismanaged the estate, can remove them and impose surcharges to compensate for losses.

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.

Related Guides

Sources:

"Texas Estates Code § 404.001 — Accounting by Independent Executor," Texas Legislature, 2025, https://statutes.capitol.texas.gov/Docs/ES/htm/ES.404.htm
"Texas Estates Code § 309.051 — Inventory, Appraisement, and List of Claims," Texas Legislature, 2025, https://statutes.capitol.texas.gov/Docs/ES/htm/ES.309.htm
"Texas Estates Code § 405.012 — Notice of Closing Statement," Texas Legislature, 2025, https://statutes.capitol.texas.gov/Docs/ES/htm/ES.405.htm

This guide provides general information about probate accounting obligations in Texas. Consult with a Texas probate attorney for advice specific to your situation.