Passing of accounts
and how to steal from a deceased's estate ....
In Western Australia, neither the Administration Act 1903 (WA) nor the Non-Contentious Probate Rules (NCR) provides a formal statutory definition of what exactly constitutes “accounts” for an estate. Instead:
- Rule 37(1) & Form 4
- Rule 37(1) of the Non-Contentious Probate Rules states that executors/administrators must file their “accounts” in accordance with Form 4, and then attend before the Registrar to have those accounts “passed.”
- However, Form 4 itself is quite minimal. It does not provide detailed instructions on the line-by-line format or what level of supporting detail is required.
- No Statutory Breakdown
- Beyond referencing “accounts” and stipulating certain procedural requirements (e.g. notices, deadlines, affidavit verification), there is no explicit definition in the legislation of what the accounts must contain.
- Practitioners often supply at least a receipts-and-payments statement plus a plan of distribution if there is a surplus, but the law does not prescribe a uniform “financial statement” format such as one might expect in formal business accounting.
- Practical Variation
- In practice, the level of detail in estate accounts can vary widely—ranging from near “blank forms” to thorough, business-style financial statements, depending on the complexity of the estate, the executor’s diligence, and whether there are anticipated objections.
- Registrar’s Role
- The Registrar does not usually undertake a forensic review of these accounts. If nobody objects, the accounts may be approved in a fairly routine way, regardless of how detailed (or not) they are.
Hence, while many executors or accountants sensibly prepare accounts in a receipts-and-payments style reminiscent of traditional financial statements, that’s often done more out of best practice or transparency rather than because the law mandates a rigid format. The essential requirement is simply to provide “accounts” in Form 4 (affidavit verifying them) within the time allowed and follow the advertising/notice rules.
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"The passing of accounts under Rule 37 of the Non-Contentious Probate Rules is a procedure in the Non-Contentious jurisdiction of the court."
"And the nature of that account is a common account. So it's not an
account on a wilful default basis and it's not open to a Registrar on a
taking of accounts under Rule 37 to order an account on the
basis of wilful default. A registrar is not able to determine in a
common form passing of accounts contested matters of a fact. So for example, or including whether or not assets have been undervalued or overvalued or whether assets have been or whether assets have been properly accounted for. So such matters would need to be determined by a judge in contentious proceedings. The common form account will require the executive account only for what they've received and their distribution or expenditure, and a Registrar may then determine if an objection is established. They can disallow that disbursement in part or wholly and decline to pass the accounts. At the end of the process, at the end of the day, items in the accounts will be passed or they won't be passed so that that's all. The nature of passing the accounts is not to enable either party to determine whether an executor or an administrator is in breach of their duties, and nor is it to satisfy a party that the executor or administrator has mistreated their role or acted unfairly or unreasonably. So if those are matters that a party is wanting to pursue, they will need to commence contentious proceedings. OK? It can't be determined in this current passing of accounts. Though one of the first questions that I will look at when I'm reviewing the accounts is to ascertain whether they are a legitimate disbursement, OK, or expense of the estate. And if an objector disputes a disbursement, then the onus is on the administrator to then prove its correctness."
"And the nature of that account is a common account. So it's not an
account on a wilful default basis and it's not open to a Registrar on a
taking of accounts under Rule 37 to order an account on the
basis of wilful default. A registrar is not able to determine in a
common form passing of accounts contested matters of a fact. So for example, or including whether or not assets have been undervalued or overvalued or whether assets have been or whether assets have been properly accounted for. So such matters would need to be determined by a judge in contentious proceedings. The common form account will require the executive account only for what they've received and their distribution or expenditure, and a Registrar may then determine if an objection is established. They can disallow that disbursement in part or wholly and decline to pass the accounts. At the end of the process, at the end of the day, items in the accounts will be passed or they won't be passed so that that's all. The nature of passing the accounts is not to enable either party to determine whether an executor or an administrator is in breach of their duties, and nor is it to satisfy a party that the executor or administrator has mistreated their role or acted unfairly or unreasonably. So if those are matters that a party is wanting to pursue, they will need to commence contentious proceedings. OK? It can't be determined in this current passing of accounts. Though one of the first questions that I will look at when I'm reviewing the accounts is to ascertain whether they are a legitimate disbursement, OK, or expense of the estate. And if an objector disputes a disbursement, then the onus is on the administrator to then prove its correctness."
- “Common Account” (Non-contentious) vs. “Wilful Default”When accounts are “passed” in common form, the Registrar only checks for proper reporting of what the executor has actually received, paid out, or distributed.The Registrar does not examine whether there were additional assets the executor should have collected, nor can the Registrar impose a “wilful default” standard.
- Registrar’s Inability to Determine Certain DisputesThe Registrar cannot decide factual disputes, such as whether assets were undervalued, overvalued, or even missing.If someone believes the executor has breached their duties (e.g. by omitting estate assets or deliberately undervaluing them), that must be pursued in contentious proceedings before a judge, not at a passing-of-accounts hearing.
- Scope of ObjectionsThe passing-of-accounts process does allow an objector to challenge specific disbursements or expenses.If an objector raises an issue, the executor must prove that the disbursement was valid and legitimate.
- What the Registrar Can DoThe Registrar can disallow questionable disbursements if they are not justified.Ultimately, the Registrar either passes (approves) or refuses to pass items in the accounts. The process does not determine fault or liability for breaches of duty.
- Contentious Matters Require Separate ProceedingsIf a party believes there was misconduct (e.g. breach of trust, wilful default), they must bring contentious proceedings in the Supreme Court.A “common form” passing of accounts is not designed to resolve complex factual disputes or hold an executor personally accountable for potential wrongdoing.
