1. Overview of Florida Probate Rule 5.346
Florida Probate Rule 5.346 establishes the mandatory uniform standard for all fiduciary accountings filed in Florida probate courts. Whether preparing an interim accounting during prolonged administration or a final accounting preceding discharge under Rule 5.400, personal representatives must strictly adhere to the designated structure.
Under Rule 5.346(a), every fiduciary accounting must begin with a Summary Schedule supported by detailed individual schedules detailing all cash and asset transactions during the accounting period.
2. Mandatory Structure: Schedules A through E
The accounting must reflect charges (items for which the fiduciary is legally accountable) and credits (items with which the fiduciary is credited for proper estate expenditure or transfer):
Summary of Account
The Summary summarizes all subordinate schedules. Charges must equal credits perfectly down to the penny:
- Charges: Starting Inventory + Schedule A (Receipts) + Schedule C (Net Capital Gains)
- Credits: Schedule B (Disbursements) + Schedule C (Net Capital Losses) + Schedule D (Distributions) + Schedule E (Assets on Hand)
Schedule A: Receipts
Schedule A itemizes all gross income and principal receipts collected during the estate administration. It must segregate Principal Receipts (such as refunds, recovery of liquidated personal property, tax refunds) from Income Receipts (such as interest, dividends, business operating income, rental income from estate real property). Under the Florida Uniform Principal and Income Act (Fla. Stat. Ch. 738), income must be tracked separately when trusts or life tenants are involved.
Schedule B: Disbursements
Schedule B accounts for all monies expended by the estate. Disbursements must be clearly categorized by payee, date, check/transaction number, purpose, and statutory claim classification under Fla. Stat. § 733.707. Fiduciary fees, legal fees, appraisal costs, court filing fees, and creditor satisfaction must appear here.
Schedule C: Capital Transactions & Adjustments
Schedule C documents the sale, exchange, abandonment, or collection of estate assets. It discloses the Carrying Value (inventory value) compared against the net proceeds realized. If an asset is sold above inventory value, it produces a capital gain; if sold below, a capital loss.
Schedule D: Distributions to Beneficiaries
Schedule D tracks all preliminary or partial advancements made to heirs or legatees during the accounting period, including specific devises delivered and cash advancements, referencing signed receipt documents.
Schedule E: Assets on Hand at End of Accounting Period
Schedule E provides a complete balance sheet of remaining assets on hand. Crucially, Rule 5.346 mandates reporting both the Carrying Value and the estimated Current Market Value as of the close of the accounting period.
3. Carrying Value vs. Fair Market Value
A frequent error in probate accounting is confusing carrying value with fair market value. Carrying value represents the date-of-death value established in the Initial Inventory (§ 733.604). This carrying value remains fixed for reconciliation purposes throughout the life of the estate unless adjusted by court-approved reappraisal.
4. Service and Objections
Pursuant to Fla. Prob. R. 5.401, a copy of the final accounting and petition for discharge must be served by formal notice on all interested persons who have not waived notice. Interested persons have 30 days from service to file formal written objections with the probate court.