CHAPTER 16. ACCOUNTING
IC 29-1-16
Chapter 16. Accounting
IC 29-1-16-1
Personal liability, loss to estate
Sec. 1. (a) Every personal representative shall be liable for andchargeable in his accounts with all of the estate of the decedentwhich comes into his possession at any time, including all the incometherefrom; but he shall not be accountable for any debts due to thedecedent or other assets of the estate which remain uncollectedwithout his fault. He shall not be entitled to any profit by theincrease, nor be chargeable with loss by the decrease in value ordestruction without his fault, of any part of the estate.
(b) Every personal representative shall be chargeable in hisaccounts with property not a part of the estate which comes into hishands at any time and shall be liable to the persons entitled thereto,if:
(1) the property was received, under a duty imposed on him bylaw in the capacity of personal representative; or
(2) he has commingled such property with the assets of theestate.
(c) Every personal representative shall be liable for any loss to theestate arising from his neglect or unreasonable delay in collecting thecredits or other assets of the estate or in selling, mortgaging orleasing the property of the estate; for neglect in paying over moneyor delivering property of the estate he shall have in his hands; forfailure to account for or to close the estate within the time providedby this article; for any loss to the estate arising from hisembezzlement or commingling of the assets of the estate with otherproperty; for loss to the estate through self-dealing; for any loss tothe estate arising from wrongful acts or omissions of hisco-representatives which he could have prevented by the exercise ofordinary care; and for any other negligent or wilful act ornonfeasance in his administration of the estate by which loss to theestate arises.
(Formerly: Acts 1953, c.112, s.1601.) As amended by Acts 1982,P.L.171, SEC.46.
IC 29-1-16-2
Closing estate; final account
Sec. 2. Every personal representative shall close the estate aspromptly as possible. Unless for good cause shown the time for filingthe final account in the estate shall not exceed one (1) year from theappointment of a personal representative.
(Formerly: Acts 1953, c.112, s.1602.)
IC 29-1-16-3
Verified account; filing; time
Sec. 3. Every personal representative may file in the court averified account of his administration at any time prior to final
settlement and distribution but every personal representative mustfile in the court a verified account of his administration.
(a) Upon filing a petition for final settlement;
(b) Upon the revocation of his letters;
(c) Upon his application to resign and before his resignation isaccepted by the court;
(d) At any other time when directed by the court either of its ownmotion or on the application of any interested person.
(Formerly: Acts 1953, c.112, s.1603.)
IC 29-1-16-4
Schedules; verification; certified public accountant
Sec. 4. Accounts rendered to the court by a personalrepresentative shall be for a period distinctly stated and shall consistof three (3) schedules, of which the first shall show the amount of theproperty chargeable to the personal representative; the second shallshow payments, charges, losses and distributions; the third shallshow the property on hand constituting the balance of such account,if any. When an account is filed, the personal representative shallalso file receipts for disbursements of assets made during the periodcovered by the account. Whenever the personal representative isunable to file receipts for any disbursements, the court may permithim to substantiate them by other proof. The court may provide foran inspection of the balance of assets on hand. The court may, uponits own motion, or upon petition, provide that verification ofaccounts or credits thereon may be made by the unqualifiedcertificate of a certified public accountant in lieu of receipts or otherproof.
(Formerly: Acts 1953, c.112, s.1604; Acts 1975, P.L.288, SEC.34.)
IC 29-1-16-5
Petition to settle and allow; petition to distribute
Sec. 5. At the time of filing of an account the personalrepresentative shall petition the court to settle and allow his account;and if the estate is in a proper condition to be closed, he shall alsopetition the court for an order authorizing him to distribute the estate,and shall specify in the petition the persons to whom distribution isto be made and the proportions or parts of the estate to which eachis entitled. Petitions to settle or to distribute may be incorporated inthe account in the absence of a court rule or order to the contrary.
(Formerly: Acts 1953, c.112, s.1605.)
IC 29-1-16-6
Hearing and notice; final distribution; unknown heirs;intermediate account
Sec. 6. (a) Upon the filing of any account in a decedent's estate,hearing and notice thereof shall be had as set forth in this section.
(b) If the account is for final settlement the court or clerk shall seta date by which all objections to such final account and petition fordistribution must be filed in writing and the clerk shall give notice to
all persons entitled to share in the final distribution of said estate thata final report has been filed and will be acted upon by the court onthe date set unless written objections are presented to the court on orbefore that date. The personal representative shall at the time saidaccount is filed furnish to the clerk the names and addresses of allpersons entitled to share in the distribution of the residue of saidestate, whose names and addresses are known to the personalrepresentative or may by reasonable diligence be ascertained as setforth in the personal representative's petition for distribution,together with sufficient copies of said notice prepared for mailing.The clerk shall send a copy of said notice by ordinary mail to each ofsaid parties at least fourteen (14) days prior to such date. Said partiesor their attorney of record may waive the service by mail of thisnotice and where there is an attorney of record, service upon saidattorney shall be sufficient as to the parties represented by saidattorney. Neither a notice nor a hearing is required if all personsentitled to share in the final distribution of the estate waive theservice of notice by mail and consent to the final account and petitionfor distribution without a hearing.
(c) If a person entitled to share in the distribution of the residueof the estate is unknown or cannot be located, the personalrepresentative may give notice by one (1) publication in a newspaperof general circulation, published in the county in which theadministration is pending. The deadline for filing an objection isfourteen (14) days before the hearing date. The notice shall state thatobjections to the final account and petition for distribution must befiled in writing before the hearing date.
(d) If the account is intermediate, but the personal representativehas therein petitioned the court that said account be made final as tothe matters and things reported in said account, the same procedureas to hearing and notice shall be followed as in the case of a finalaccount.
(e) If the account is intermediate and the personal representativemakes no request that said account may be made final as to thematters and things reported in said account, the court may order suchnotice as the court deems necessary or approve the same ex parte andwithout notice. Every such intermediate account approved withoutnotice shall be subject to review by the court at any time and shallnot become final until the personal representative's account in finalsettlement is approved by the court.
(Formerly: Acts 1953, c.112, s.1606; Acts 1955, c.258, s.8; Acts1975, P.L.288, SEC.35.) As amended by P.L.118-1997, SEC.24;P.L.252-2001, SEC.24; P.L.1-2002, SEC.125.
IC 29-1-16-7
Objections; modification
Sec. 7. At any time prior to the hearing on an account of apersonal representative, any interested person may file writtenobjections to any item or omission in the account. All suchobjections shall be specific and shall indicate the modification
desired.
(Formerly: Acts 1953, c.112, s.1607.)
IC 29-1-16-8
Approval or disapproval; appeals; relief from liability
Sec. 8. Upon the approval of the account of a personalrepresentative, the personal representative and his sureties shall,subject to the right of appeal and to the power of the court to vacateits final orders, be relieved from liability for the administration of histrust during the accounting period, including the investment of theassets of the estate. The court may disapprove the account in wholeor in part and surcharge the personal representative for any losscaused by any breach of duty.
(Formerly: Acts 1953, c.112, s.1608.)
IC 29-1-16-9
Death or incompetency of personal representative; out-of-stateresidency
Sec. 9. (a) If the personal representative dies or becomesincompetent, his account shall be presented by his personalrepresentative or the guardian of his estate to, and settled by, thecourt in which the estate of which he was personal representative isbeing administered and the the court shall settle the account as inother cases. The personal representative of the deceased personalrepresentative shall have no authority as such to proceed with theadministration.
(b) Where the deceased or incompetent person has no personalrepresentative or guardian, the surety upon his bond shall file suchaccount on his behalf.
(c) Where a personal representative is without the state, and failsto account as provided in this article, such account may be filed byhis resident agent or by his surety or its resident agent and the courtmay compel the surety or its resident agent to file such account.
(Formerly: Acts 1953, c.112, s.1609.) As amended by Acts 1982,P.L.171, SEC.47.
IC 29-1-16-10
Noncompliance with orders; attachment; imprisonment
Sec. 10. Any person who has been ordered to account as hereinprovided, and who fails to comply with such order, may be attachedand imprisoned in order to enforce such compliance therewith.
(Formerly: Acts 1953, c.112, s.1610.)