1. What geographic areas are covered by Oakhill FSS?
Over the years, the reporting requirements for Inventories and Accountings has standardized somewhat throughout Virginia. Although we are physically located in both the Fairfax and the Harrisonburg area, we are able to file the necessary forms in any city or county jurisdiction in Virginia. New technology has made the process of gathering the data easier but most of the Inventories and Accountings still have to be submitted in hard copy form (paper).
2. Why can't I do it myself?
One does not have to be a lawyer, CPA, or a financial expert to prepare and file Inventories and Accountings with the Commissioner of Accounts. However, one does need a meticulous attention to detail, an understanding of the various financial securities, an ability to track and monitor the movement of funds coming into and leaving an estate or trust, and most of all….time. Individuals and professionals may possess the necessary skills but find that between family, work, civic obligations, etc. they just do not have the time or the “band-width” at the end of the day or week to engage in the details involved in valuing securities and accounting for income, disbursements, and distributions and getting it into a written format acceptable to the Court.
3. How do we get started?
If you have been appointed by a Circuit Court in Virginia as either an Executor (specifically named in a decedent’s Will) or Administrator (no Will or not named in Will but appointed by the Circuit Court to be the estate’s or trust’s fiduciary) and find you need assistance in carrying out your financial reporting responsibilities, you can contact Oakhill FSS by phone (540-908-9166) or by email (bpierce@oakhillfss.com) to discuss the specifics of your case. Please have a copy of the Will and/or Trust and a general list of assets on hand to aid in this initial discussion.
If you decide to use Oakhill FSS for your fiduciary accounting or other needs, we will send you an engagement letter that spells out what Oakhill FSS will do and what we charge. We can then make arrangements to obtain the necessary financial information to begin this journey.
4. What is an Accounting?
An accounting begins with the date of death values shown on the Inventory and is a record of all the cash and other assets received, disbursed, and distributed until the estate or trust is closed. A court accounting has to balance “to the penny” and any non-cash assets are required to be re-valued annually. Accountings have to be filed annually with the Commissioner of Accounts until the estate or trust is distributed and closed. The Commissioner of Accounts either approves the Accounting and sends it to the Circuit Court for recording in its records or contacts the fiduciary with questions or requests for additional information.
5. What is an Inventory?
An Inventory is a snapshot in time of the probate assets owned by the decedent at the time of his or her death. Generally, a probate asset is one that was in the decedent’s sole, individual name at the time of his or her death. Therefore, any assets held jointly or that have a named beneficiary are generally not probate assets.
Probate assets can be bank accounts, securities, tangible personal property (cars, furniture, jewelry, etc.), real estate, life insurance, retirement accounts and business interests. Assets have to be identified and valued (date of death value) within four months of the fiduciary’s qualification with the Court.
Frequently Asked Questions
Common Problems & Solutions
Problem 1: Obtaining date of death values for probate assets
Solution: Whether probate assets are bank accounts, stocks and bonds, sole-proprietorships or LLC’s, real estate or any other type of asset, the value of the asset as of the decedent’s date of death needs to be determined. OFSS has access to software and other professional valuation experts to provide you with the perfect starting point for your valuation and tax reporting needs.
Problem 2: Too many bank and brokerage accounts to track
Solution: OFSS can assist in identifying and consolidating the assets into one or two accounts to make tracking and reporting sales, receipts, and disbursements much easier.
Problem 3: I don’t know what documentation is needed to file with the accounting
OFSS can assist with assembling the necessary bank and brokerage statements, copies of paid invoices, and signed receipts for distributions.
Problem 4: I have prepared and filed the Inventory or the Accounting myself and the Commissioner of Accounts has returned it with questions or is requesting additional information.
Solution: OFSS has experience in fixing many of the most common reporting problems and can usually quickly identify the issue and prepare an acceptable response.
Problem 5: I have missed (or coming close to missing) a filing deadline and am unable to complete the required report.
Solution: If notified in advance, many Commissioners of Account will grant a short extension of a deadline to allow for proper reporting. For Inventories and Accountings that are delinquent, the matter and consequences become more serious. In either case, engaging the services of an experienced professional shows the Court that you take your responsibility seriously and will work diligently to resolve the problem.
Problem 6: The summary page won’t balance
Solution: This is a common problem but can be difficult and time-consuming to resolve. It can be anything from a math error to an incorrect date entered that results in an entry reported in the wrong accounting year.