Section 30 of the Connecticut Probate Court Rules of Procedure now requires a report called an Affidavit of Closing. While this may sound like extra paperwork, it’s actually a good thing for all involved because it ensures that what was supposed to be done actually got done.
In the Affidavit of Closing, the Executor of an estate must confirm what he or she did with the estate assets after the court approved the Financial Report which essentially says, “Here’s what the estate consists of and here’s what we’re going to do with it.” The Affidavit of Closing answers questions like “Did the beneficiaries receive the assets as proposed in the Financial Report?” and “Did the Executor set up the reserve to pay future legal fees and accounting fees needed to file the income tax returns or collect on a claim after the estate is closed?” As you can see, these are questions the beneficiaries, creditors and the probate court have an interest in making sure get answered satisfactorily.
In the past, the Affidavit of Closing was not always submitted. Connecticut Probate Courts used to have discretion in determining whether to require an Affidavit of Closing. Some probate courts always asked for Affidavit of Closing and other probate courts didn’t ask. Executors never knew whether the probate court they were dealing with would ask for an Affidavit of Closing or not.
Estate Executors do not need to wonder any more. After July 1, 2015, all Executors must file an Affidavit of Closing after approval of the financial report or final account. While this sounds like extra work, it is a good thing because the Affidavit of Closing acts as a sort of protection for both the Executor and the beneficiaries of the estate. It makes sure that the Executor follows the Financial Report that the court approved. Following the court decree will relieve the Executor of liability for the estate. It also confirms to the court that the beneficiaries received the distribution approved by the court. The Probate Court can confirm whether the estate was closed as decreed at the beginning of the estate administration. If not, the Probate Court will ask for an explanation of the delay in closing the estate.
One of the benefits of the Rules of Procedure originally enacted in 2013 was that it imposed uniformity among Connecticut’s probate courts. This new rule regarding Affidavits of Closing further ensures that uniformity.
Contact our estate planning law firm today if you have questions about how an Affidavit of Closing or other recent probate rule changes affects your situation.
