Regarding sample Petition for Final Distribution (CA), section: SCHEDULE OF PURCHASES OR OTHER CHANGES IN FORM OF ASSETS

Question

"Certain assets were disposed of or changed in form during the administration of the estate. All changes in investments are shown on Attachment ___, attached hereto and made a part hereof by reference." 
 
There are stocks in the inventory. Per the company's request (PLEASE DO A FULL AND IMMEDIATE  DISTRIBUTION OR ESTABLISH AN ESTATE ACCOUNT), an estate account was established to close the stocks into. According to the inventory, the values at date of death vs. amounts closed to the estate account are different.  
 
We are waiving an account in the report so Summary of Account section will be excluded.  
 
However, in this section "Schedule of purchases/Other changes...", do these amounts count as "changes in form of assets"?  
 
If so, can I simply write out the differing amounts instead of using an attachment? Ex: Stock ___, valued at ___ in the inventory, was closed to the estate account in the amount of ___ 
 
If not, any example of how to write out an attachment? 
 
Thank you!

James L. Arrasmith · Answer

Under California law, establishing an estate account and transferring the stocks from the decedent's individual account to the estate account would likely be considered a change in the form of assets. This is because the ownership of the stocks has changed from the decedent to the estate, even though the stocks themselves have not been sold or replaced with other investments. 
 
In this situation, you can include the information directly in the petition without using an attachment, especially if there are only a few stocks to list. Here's an example of how you might write this out in the petition: 
 
"Certain assets were disposed of or changed in form during the administration of the estate, as follows: 
 
1. XYZ Corporation stock, valued at $10,000 in the inventory, was transferred to the estate account in the amount of $11,000. 
2. ABC Corporation stock, valued at $5,000 in the inventory, was transferred to the estate account in the amount of $4,500." 
 
If there are many stocks to list or the information is more complex, you may want to use an attachment for clarity and organization. In that case, you would create a separate document titled "Attachment to Schedule of Purchases or Other Changes in Form of Assets" and list the information there, using a format similar to the example above. Then, in the petition, you would reference the attachment as follows: 
 
"Certain assets were disposed of or changed in form during the administration of the estate. All changes in investments are shown on Attachment 1, attached hereto and made a part hereof by reference." 
 
Remember to number the attachment and include it with the petition when filing.

Q: Regarding sample Petition for Final Distribution (CA), section: SCHEDULE OF PURCHASES OR OTHER CHANGES IN FORM OF ASSETS