All requirements in Rule 64.3 also apply to the accounts of testamentary trustees and other fiduciaries who are not executors, administrators, except as provided in R.C. §2109.303(B).
Best Practices Local Rule 64.1
Failing to file accounts on time is one of the biggest problems the Court encounters, both in decedent’s estates and in guardianships. You are responsible for managing your own calendar and knowing when your account is due. The Court no longer sends you reminders. You can verify your due dates through the Court’s website.
It is much easier to prepare an account if you gather and organize the information throughout the year, instead of in a mad rush just before the account is due. Consider developing a system to gather the necessary information at least monthly to minimize stress and chaos as you near the due date.
In preparing accounts, remember that detail, accuracy and good organization are crucial. Rule 64.1(C) suggests a good, logical format for an account. Remember, the easier you make it for the Deputy Clerks to review and understand your account, the faster and more likely it is to be approved.
Local Rule 64.2
This Rule requires careful review, as it is much different than past practice. Be sure you understand the difference between a Notice to Extend Administration and an Application to Extend Administration, and use the correct form to fit your circumstances.
The Court’s goal is to have a vast majority of estate cases closed through a final and distributive account no later than 13 months after appointment. If that is not possible, the first partial account cannot be waived because the Court needs to see what is going on to that point so it has a handle on where the case stands. Subsequent partial accounts may be waived, but you still need to file a status report to keep the Court informed about what is going on in the case.
“Zero” accounts are not permitted (and really do not make any sense). If there is intangible personal property there better be at least nominal income from their investment. Otherwise, the Fiduciary may not be fulfilling his or her fiduciary duty. If there is only real estate, the Fiduciary better be keeping the taxes, insurance and utilities current. Even if the source of funds to pay those expenses are loans or advances from the Fiduciary or someone else, they need to be shown as such on the account, with an itemization of where the loan or advancement was spent. One of the biggest impediments to getting an account filed on time in the past has been having return receipt green cards to file simultaneously with the account. Rule 64.2(I) eliminates that problem. You should still send a copy of the account to all heirs and beneficiaries by certified mail. However, you do NOT need to file green cards, USPS tracking reports or signed acknowledgements with the Court. You better maintain them in your file, however, in case they are needed as proof later. All you need to file with the Court is the certificate of service of account (SC Form 13.9) and an affidavit (GC Form 64.2-D).
Finally, Rule 64.2(J) eliminates the requirement to serve notice of the hearing on any account in a decedent’s estate. The hearing is still set and still takes place, but notice is not required. The Court recommends that you always serve the notice of the hearing in every case and on every account by certified mail as protection. Keep the proof of service in your file in case it is needed later if someone files exceptions to the account out of time.
Even though our Local Rule does not require that you serve the notice or provide proof to the Court, you are permitted to do so if you want. Simply file a certificate of service of notice of hearing on the account together with an affidavit, or attach the actual return receipt green cards to the certificate. This step is completely optional, but it may be something to consider doing if you have a problem estate or if you have disgruntled heirs or beneficiaries.
Local Rule 64.3
The time for filing guardian’s accounts has changed from every year to every two years. This is consistent with the statute. If you want to file accounts annually, you may still do so, but you are not required to do annual accounts. Filing an account in an off year does not change the biennial due date.
Because of the two year filing interval, it will be even more important to create a good system for maintaining records regularly. The Court recommends that you adopt an internal monthly accounting process, at a minimum. If you wait until the two year account is due to begin gathering information, you will likely encounter a great deal of stress and frustration. You will also increase the likelihood of inaccuracies in your account. Failing to gather and maintain the necessary information regularly between accounts is not a sufficient reason to obtain an extension of the account due date. You have to be proactive because you know when the account is due.
Be sure that you set up a guardianship bank account and receive statements with cancelled checks. You will need those as supporting documentation for your account. Trying to obtain cancelled checks after the fact can be costly and time consuming.
Remember that guardianship accounts require that you produce supporting documentation to back up each entry on the account. Provide that with the account, as the Court cannot accept the account for filing without it.
Local Rule 64.4