Conn. Prob. Ct. R. P. 36

As amended through April 25, 2023

Rule 36 - Fiduciary Accounting: General Provisions

Section 36.1 Methods of accounting

Except as provided in section 36.3, a fiduciary required or permitted to account to the court for the management of an estate may satisfy the legal requirements of an account by submitting a financial report meeting the requirements of rule 37. Ifan account is required instead of a financial report, the fiduciary shall submit an account meeting the requirements of rule 38. Nothing in this rule prevents a fiduciary from submitting an account instead of a financial report.

(C.G.S. sections 19a-301, 45a-98(a)(6), 45a-143, 45a-175 through 45a-180, 45a-242(b), 45a-317(f), 45a-489a(d), 45a-517, 45a-559d, 45a-654(f), 45a-655(c) and 45a-660(b).)

Section 36.2 Financial reports distinguished from accounts

A financial report is a simplified form of accounting by which a fiduciary provides summary information about the management of an estate. A financial report differs from an account in the following ways:

(1) principal and income need not be reported separately;

(2) assets may be reported at current fair market value rather than fiduciary acquisition value; and

(3) a financial report need not balance in the manner required for an account.

(Probate Court Rules, rules 37 and 38.)

Section 36.3 When account is required instead of financial report

(a) A fiduciary shall submit an account rather than a financial report if the fiduciary is required to account separately for principal and income under section 38.1.

(b) On motion of a party or on the court's own motion made before approval of a financial report, the court may require the fiduciary to submit an account instead of a financial report if the court determines that an account is necessary to review the fiduciary's management of the estate.

Section 36.4 Financial reports and accounts to present information in clear manner and be signed under penalty of false statement

(a) A fiduciary submitting either a financial report or an account to the court shall present all required information in a concise, clear and understandable manner and in sufficient detail so that the court and the parties can review the fiduciary's management of the estate.

(b) A fiduciary shall sign a financial report or account under penalty of false statement.

(c) A fiduciary may submit a financial report or account on a form published by the probate court administrator or in any format that satisfies the requirements of rules 36 through 38.

Section 36.5 Fiduciary to send copy of financial report or account and affidavit of closing to each party and attorney

(a) A fiduciary submitting a financial report, account or affidavit of closing shall send a copy, at the time of filing, to each party and attorney of record and shall certify to the court that the copy has been sent.

(b) If a beneficiary is a charity or charitable interest, the fiduciary shall send a copy of each financial report, account or affidavit of closing, at the time of filing, to the Attorney General and shall certify to the court that the copy has been sent.

(C.G.S. section 45a-175.)

Section 36.6 When executor or administrator to submit financial report or account

See section 30.19.

Section 36.7 When trustee to submit financial report or account

See section 32.5.

Section 36.8 When final financial report or account of trustee excused

See section 32.7.

Section 36.9 When conservator to submit financial report or account

See section 33.14.

Section 36.10 Periodic or final financial report or account excused when person under conservatorship is Title 19 recipient

See section 33.17.

Section 36.11 When guardian of estate to submit financial report or account

See section 34.8.

Section 36.11a When guardian of adult with intellectual disability to submit financial report or account

See section 43.6.

Section 36.11b When periodic or final financial report or account by guardian of adult with intellectual disability excused

See section 43.6.

Section 36.12 Affidavit of closing

(a) If the court directs the fiduciary to file an affidavit of closing, the fiduciary shall file the affidavit in accordance with this section not later than 30 days after completing distribution of all assets on hand.

(b) The affidavit of closing shall itemize each transaction since the end of the accounting period of the fiduciary's final financial report or account and shall include:

(1) the reserve shown on the final financial report or account;

(2) income or assets received; and

(3) amounts disbursed from the reserve and additional income and assets.

(c) The affidavit shall include a statement that assets in the fiduciary's control have been distributed in accordance with the final financial report or account and that the estate is fully settled.

(d) Except for amounts shown as reserve on the financial report or account or additional income or assets received after the end of the accounting period, the affidavit shall not modify any item that would alter a beneficial interest previously adjudicated in the allowance of a financial report or account.

(e) The affidavit shall be signed under penalty of false statement.

(f) The court may accept the affidavit without notice and hearing.

Section 36.13 Records to be maintained by fiduciary

(a) Subject to subsection (c), a fiduciary shall maintain complete records of the fiduciary's management of the estate including, but not limited to, the paper copy or electronic equivalent of:

(1) each accounting, report, journal or ledger used in managing the estate, including all data recorded with accounting software;

(2) each statement and passbook for each financial account, including savings, checking, money market, certificates of deposit, investment, individual retirement and other types of accounts;

(3) each canceled check or check image for each financial account, if provided by the financial institution;

(4) a receipt for each deposit made into each financial account and supporting information relating to the deposit;

(5) supporting information relating to each disbursement made from each financial account, including original supporting vendor invoices and receipts;

(6) supporting information relating to each peer-to-peer commerce and any other electronic means to transfer funds;

(7) each statement for each credit card, including a store card, account;

(8) supporting information relating to each charge made on each credit card, store card or debit card, including supporting vendor invoices and charge slips or receipts;

(9) supporting information relating to transactions involving electronic wallets, electronic currency, cryptocurrencies and other forms of virtual financial transactions;

(10) supporting information relating to each distribution made from the estate or trust to any heir, beneficiary, conserved person or minor, as applicable;

(11) with respect to a conservatorship of the estate, supporting information relating to each gift or other transfer for less than full consideration made from the estate to a party other than the conserved person, provided, however, that a conservator may make gifts and transfers only with prior court approval under C.G.S. section 45a-655(e);

(12) detailed payroll information for each employee engaged or paid by the estate for each pay period, including time reporting records, original payroll registers, journals, and reports and copies of all Internal Revenue Service Forms 940, 941, 942, W-3 and W-2 and other payroll tax forms;

(13) details of each contracted service provider engaged or paid by the estate for each calendar year, including original invoices from contractors and copies of all Internal Revenue Service Forms 1096 and 1099 and other tax forms;

(14) a detailed journal describing the fiduciary's services and compensation paid to the fiduciary;

(15) with respect to a decedent's estate or trust, a copy of each state and federal fiduciary income tax return filed by or on behalf of the estate or trust;

(16) with respect to a conservatorship of the estate or guardianship of the estate of a minor, a copy of each state and federal personal income tax return filed by or on behalf of the person under conservatorship or minor, including each form and information received for each tax year used in the completion of each return;

(17) with respect to a conservatorship of the estate, a copy of each state and federal gift tax return filed by or on behalf of the person under conservatorship;

(18) supporting information relating to the sale of any asset required to be reported on an inventory such as real property, motor vehicles or other personal property;

(19) with respect to rental property, copies of all lease agreements and supporting information for security deposits, income and expenses for each property;

(20) supporting information relating to trademarks, copyrights, patents and other forms of intellectual property; and

(21) any other record not specified in this section documenting the fiduciary's actions in the management of the trust or estate.

(b) The fiduciary shall not destroy any estate financial records until the court approves the fiduciary's financial report or account, the conclusion of any appeal on the report or account, or the termination of any other applicable record retention requirement, whichever is later.

(c) When considering whether the fiduciary has satisfied the requirements of subsection (a), the court shall consider the totality of the circumstances, the extent of compliance and whether the fiduciary made good faith efforts to comply.

Section 36.14 Definition of fiduciary acquisition value

(a) The fiduciary acquisition value of an asset is:

(1) for a decedent's estate, the fair market value of the asset on the date of death;

(2) for a trust, the fair market value of the asset on the date of death of the testator or settlor or on any other basis for value that the court directs after considering the nature of the trust and the manner in which it was funded; and

(3) for a conservatorship, guardianship or any other estate not specified in this section, the fair market value of the asset on the date of appointment of the first fiduciary.

(b) The fiduciary acquisition value of an asset that a fiduciary purchases during the course of administration is the sum of the purchase price of the asset and expenses directly related to the purchase.

(c) The fiduciary acquisition value of an asset shall not be changed based on unrealized gain or loss owing to fluctuations in market value.

(d) The fiduciary acquisition value of an asset shall be adjusted to reflect transactions in which:

(1) additional investments, such as capital improvements to real property, are made in an asset; and

(2) some of the original investment is returned to the fiduciary, such as the sale of a partial interest in an asset or the receipt of principal payments on a promissory note.

HISTORY: Rule 36 adopted effective July 1, 2013. Sections 36.5 and 36.13 amended effective July 1, 2015. Section 36.13 amended effective July 1, 2017. Section 36.13 amended and sections 36.11 a and 36.11b adopted effective January 1, 2020. Section 36.13 amended effective July 1, 2022.

Conn. Prob. Ct. R. P. 36

Rule 36 adopted effective 7/1/2013. Sections 36.5 and 36.13 amended effective 7/1/2015. Section 36.13 amended effective 7/1/2017. Section 36.13 amended and sections 36.11 a and 36.11b adopted effective 1/1/2020; Section 36.13 amended effective July 1, 2022.