Accounting in Probate in
Superior Court NJ Court Rules
More info at http://www.njlaws.com/probate_accountings.html
RULE 4:87.
Actions For The Settlement Of Accounts
4:87-1.
Procedure
(a) Actions to settle the accounts of executors,
administrators, testamentary trustees, non-testamentary trustees, guardians and
assignees for the benefit of creditors shall be brought in the county where
such fiduciaries received their appointment. The action shall be commenced by
the filing of a complaint in the Superior Court, Chancery Division, and upon
issuance of an order to show cause pursuant to R. 4:83. A non-testamentary
trustee shall annex to the complaint a copy of the written instrument creating
the trust and stating its terms. The order to show cause shall state the amount
of commissions and attorney's fee, if any, which are applied for.
(b) An action may be commenced by an interested
person to compel a fiduciary referred to in paragraph (a) of this rule to
settle his or her account, and, in appropriate circumstances, to file an
inventory and appraisement.
4:87-2.
Complaint
The complaint in an
action for the settlement of an account
(a) shall contain the names and addresses of all
persons interested in the account, including any surety on the bond of the
fiduciary, specifying which of them, if any, are minors or mentally
incapacitated persons, the names and addresses of their guardians, or if there
is no guardian then the names and addresses of the parents or persons standing
in loco parentis to the minors;
(b) shall specify the period of time covered by
the account and contain a summary of the account. The summary shall state, all
as shown by the account: (1) in the case of a first accounting, the amount for
which the accountant was chargeable as of the date the trust or obligation
devolved upon him or her, or where an inventory is on file, the amount of the
inventory; or in the case of a second or later accounting, the balance
remaining in the hands of the accountant as shown in the last previous account;
(2) the amount for which the accountant became chargeable in addition thereto;
(3) the total of the first two items; (4) the amount of the allowances claimed
in the account; and (5) the balance in the accountant's hands. Charges and
allowances sought on account of corpus and income shall be stated separately
both in the summary and in the account;
(c) shall have annexed thereto the account which
shall be dated;
(d) shall ask for the allowance of the account,
and also for the allowance of commissions and a fee for the accountant's
attorney, if accountant intends to apply therefor; and
(e) shall be filed at least 20 days prior to the
day on which the account is to be settled.
4:87-3.
Form of Account; Statement of Assets to Be Annexed to Account
(a) Form of Account. The charges and
allowances as to principal and income and the statements required to be annexed
to the account may be typed or in the form of computer or machine printouts;
and, where appropriate, the accountant may use a single schedule for the
presentation of portions of the account, but charges and allowances as to
corpus and income shall be stated separately.
(b) Statement to Be Annexed to Account. To all accounts shall be annexed:
(1) a
full statement or list of the investments and assets composing the balance of
the estate in the accountant's hands, setting forth the inventory value or the
value when the accountant acquired them and the value as of the day the account
is drawn, and also stating with particularity where the investments and assets
are deposited or kept and in what name;
(2) a
statement of all changes made in the investments and assets since they were
acquired or since the day of the last account, together with the date the
changes were made;
(3) a
statement as to items apportioned between principal and income, showing the
apportionments made;
(4) a
statement as to apportionments made with respect to transfer inheritance or
estate taxes;
(5) a
statement of allocation if counsel fees, commissions and other administration
expenses have been paid out of corpus, but the benefits of the deductions from
corpus have been allocated in part or in whole to income beneficiaries for tax
purposes; and
(6) a
statement showing how the commissions requested, with respect to corpus, are
computed, and in summary form the assets or property, if any, not appearing in
the account on which said commissions are in part based.
4:87-4.
Service
(a) Process shall be the order to show cause. If
the names and addresses of all parties interested in the account are known, the
order to show cause together with a copy of the complaint, both certified by
plaintiff's attorney to be true copies, shall be mailed by registered or
certified mail, return receipt requested, as follows: to all such persons who
reside in the State at least 20 days prior to the return date; to all such
persons who reside outside this State but within a state of the United States
or the District of Columbia, at least 30 days prior to the return date; and to
all such persons who reside outside the United States at least 60 days prior to
the return date. If any person interested is a minor or mentally incapacitated
person and except as otherwise provided by R. 4:26-3 (virtual representation),
service shall be made on the person or persons upon whom a summons would have
to be served pursuant to R. 4:4-4(a)(2) and (3) unless a guardian ad litem is
required under R. 4:26-2. A surety on the fiduciary's bond shall be deemed an
interested person. Upon the request of any interested party a copy of the
account shall be furnished by the fiduciary prior to the date of hearing.
(b) If the names or addresses of any persons
interested in the account are unknown, notice of the accounting shall be given
to the Attorney General at least 45 days prior to the return date, and
plaintiff shall file an affidavit of inquiry as to such names or addresses made
in accordance with R. 4:4-5(b). The court may then enter such order for service
of process as it deems proper including publication of a notice of the
proceedings in accordance with R. 4:4-5(a)(3) at least 30 days before the
return date.
(c) Proof of mailing, and of publication where
ordered, shall be filed before the account is allowed.
4:87-5.
Vouchers
Vouchers in support of
allowances claimed in an account shall be made available for inspection by an
interested person during business hours at the office in this State of the
accountant or of the accountant's attorney. They shall be presented to the
court only if requested by the court or by an interested person, or, as to particular
allowances, by the Surrogate auditing the account. Vouchers presented to the
court or the Surrogate shall be returned to the accountant or the accountant's
attorney after the settlement of the account.
4:87-6.
Audit and Report on Accounts
The Surrogate as deputy
clerk of the court shall audit the accounts of all fiduciaries unless otherwise
ordered by the court pursuant to R. 4:53-7(b), shall place the same on file at
least 20 days prior to its presentation to the court, and shall make a report
to the court upon the audit not later than the day on which the account is
settled. The report shall specify the derelictions, if any, and other matters
that in the Surrogate's opinion should be brought to the court's attention.
4:87-7.
Report of Guardian Ad Litem
A guardian ad litem for a
minor or mentally incapacitated person shall file a written report with the
court at least 7 days prior to the day on which the account is settled. If the
guardian applies for the allowance of a fee in excess of $1,000 the report
shall include, or be accompanied by, an affidavit of services. Notice of all
applications for allowances shall be given as provided by R. 4:26-2(c).
Rule
4:87-8. Exceptions
In all actions for the
settlement of accounts, other than plenary actions, any interested person may,
at least 5 days before the return of the order to show cause or within such
time as the court allows, serve the accountant written exceptions, signed by
that person or his or her attorney, to any item in or omission from the
account, including any exceptions to the commissions or attorney's fees
requested. The exceptions shall state particularly the item or omission
excepted to, the modification sought in the account and the reasons for the
modification. An exception may be stricken because of its insufficiency in law.
4:87-9.
Dispensing With Accounting by Agreement
If all parties interested
in any separable part of an account, such as income, are of full age and
competent, and so agree in writing, there need be no accounting as to the same.
3B:12-6. Circumstances under which money may be paid or personal property delivered.