While looking at a Petition for Final Distribution sample, there is a section about "Investment of Cash on Hand"

Question

"Petitioner has invested and maintained all cash in interest bearing accounts or in investments authorized by law or the governing instrument, except for an amount of cash that is reasonably necessary for the orderly administration of the estate" 
 
I just looked back at the duties of personal representative paper and it reads:  
 Except for checking accounts intended for ordinary administration expenses, estate accounts must earn interest. 
 
Unfortunately, we seemed to have made a regular estate checking account and are trying to turn in the petition a few weeks before the 1 year mark of Letters being issued. We are a small family who is going through probate because the decedent did not know of trusts/transfer on death properties beforehand.  
 
Will it be an issue that only an estate checking was made? The funds in there are money from a bank account (~$100) and money from stock accounts that needed to be closed. Any advice on how to word this in the petition?

James L. Arrasmith · Answer

In this situation, it's important to be transparent about the estate's financial management in the Petition for Final Distribution. While it's generally expected that estate funds be held in interest-bearing accounts, there are some exceptions. Here's how you could address this in your petition: 
 
1. Explain the reason for using a non-interest-bearing account: Mention that the estate checking account was used for the orderly administration of the estate and to manage the estate's expenses. 
 
2. Emphasize the small size of the estate: Note that the estate is relatively small, and the funds in the checking account were primarily used for necessary administrative expenses. 
 
3. Highlight the short timeline: Point out that the petition is being filed within a year of the issuance of Letters, suggesting that the funds were not held in the non-interest-bearing account for an extended period. 
 
Here's an example of how you could word this in the petition: 
 
"Petitioner has maintained the estate funds in a checking account intended for ordinary administration expenses. Due to the small size of the estate and the short timeline for administration, the funds were held in this account to ensure the orderly management of the estate's necessary expenses. The checking account contains the proceeds from a bank account of approximately $100 and funds from stock accounts that needed to be closed. Petitioner believes that the use of this account was reasonable given the circumstances and the need to efficiently manage the estate's administration." 
 
While it's not ideal that the funds were held in a non-interest-bearing account, being transparent about the reasoning and emphasizing the specific circumstances of your case should help mitigate any concerns the court may have. However, it's always best to consult with a local probate attorney for guidance specific to your situation and jurisdiction.

Q: While looking at a Petition for Final Distribution sample, there is a section about "Investment of Cash on Hand"