Manage Estate Cash

The Cashflow tab is a place for you to record cash flowing into and out of the estate, usually corresponding to an estate checking account you opened with the estate EIN. You use the Cashflow tab to record income that is provided to you directly (such as individual stock dividends or refund checks), expenses (such as utility bills or executor travel), asset sales, debt payments, and ultimately, cash distributions to heirs.

Getting Started

When you enter your first transaction, EstateExec will automatically create an estate account asset for you on the Assets tab, so that deposits (and withdrawals) will be included in the overall estate. You can also manually create an estate account beforehand by setting the Type of an asset to "Estate Account". In either case, transactions on the Cashflow tab will automatically sync with the Value Now of the estate account asset.

There are 3 common ways to make an initial deposit into an estate account:

  • Transfer: You can transfer money from an existing asset to the estate account (see Transfer below).
  • Sell: You can sell an existing asset, depositing the proceeds into the estate account (see Sale below).
  • Loan: You (or anyone) can loan the estate money, recording the deposit of Category "Executor Loan to Estate", and creating a new Debt.

Create a Transaction

To create a new transaction,

  1. Click the "Create Transaction" button on the Cashflow tab, causing the Transaction dialog to appear.
  2. Enter the requested information, and press the "OK" button.
  3. Your new transaction will appear in the appropriate date-sorted position in the table of transactions. If you enter a very old transaction, you may need to extend the list to include older dates if you want to see it in the table.

To change a transaction, simply click on any cell in its row, and the Transaction dialog will appear.

Record a Bill Payment

To record a bill payment for a:

  • New Estate Expense: Simply create a new transaction, and enter the requested information (the transaction dialog is set to record general expenses by default, so no need to set Type:Withdrawal and Category:Estate Expense, but you may wish to change the category to something more specific if appropriate).
  • Debt at Death: If the debt existed at the time of death, first make sure the debt has been entered on the Debts tab, then follow the instructions for Paying Off a Debt.
  • Estate Loan: If you borrowed money for the estate, first make sure the loan has been entered on the Debts tab (via the Borrow button), then follow the instructions for Paying Off a Debt.

Transfer Money to/from the Estate Account

To record that you have transferred money from an existing asset to the estate account (or vice versa),

  1. Click the "Create Transaction" button on the Cashflow tab, causing the Transaction dialog to appear.
  2. Select Type "Deposit" and Category "Transfer" (or "Withdrawal"/"Transfer" if that's what you want to do).
  3. Select the other asset involved from the Item list.
  4. Enter the remaining information in the dialog and press "OK".

Reimburse Executor Expenses

It's common for the executor to incur expenses that should be reimbursed by the estate: you can use the Expense Log on the Executor tab to track and manage these expenses (see Log Executor Expenses for instructions).

When the time comes to make a reimbursement, you can record it directly from the Executor Expense Log (causing it to also appear as Cashflow Transaction), or you can accomplish the same thing by creating Cashflow Transactions of Type "Withdrawal" and Category "Reimbursement".

Borrow Money for the Estate

Sometimes the estate needs to borrow money to pay certain expenses before estate funds become available. To record such a transaction (which will create a new Debt of Type "Executor Loan" and automatically deposit the proceeds into the Estate Cashflow account),

  1. Click the "Borrow" button on the Debts tab.
  2. Fill in the Transaction dialog that appears, and press OK.

Deposit Sale Proceeds into the Estate Account

To record that you have deposited the proceeds from an asset sale into the estate account, simply record the asset sale on the Assets tab and EstateExec will automatically create the corresponding transaction for you.

  1. Click the asset's "Sold" cell on the Assets tab.
  2. Enter the requested information in the dialog that appears, and press "OK".

Record Loan Repayment

To record that a loan from the estate (i.e., a loan the decedent or the estate itself made to someone else) is being repaid,

  1. Click the "Create Transaction" button on the Cashflow tab, causing the Transaction dialog to appear.
  2. Select Type "Deposit" and Category "Loan Repayment".
  3. Select the loan involved from the Item list.
  4. Enter the remaining information in the dialog and press "OK".

To record that a loan to the estate (i.e., often from the executor) is being repaid, follow the above instructions, but select Type "Withdrawal" and the desired Category.

In both cases, these repayment transactions should include only principal, since EstateExec will automatically reduce the loan's current asset value (and remaining cost basis) according to the transaction amount. If the payment involves interest, you should split it apart and also record a separate interest transaction.

Create a Cash Distribution

To create a new cash distribution from the estate account,

  1. Click the "Create Distribution" button on the Cashflow tab, causing the Estate $ Distribution dialog to appear.
  2. Enter the requested information, and press the "OK" button.
  3. Your new distribution will appear in the appropriate date-sorted position in the table of transactions. If you did not define a date (because it is not yet Done), then it will only appear if the "Include future Plans" checkbox is selected at the top of the table. For your convenience, EstateExec automatically turns on this checkbox when you create a new future cash distribution from the estate account.

To change a cash distribution, simply click on any cell in its row, and the Estate $ Distribution dialog will appear.

Notes

Here are a few helpful things to know about the Cashflow tab:

  • Alternate Entry Methods: Any transaction that involves an external item (e.g., an asset, debt, distribution, executor reimbursement) can be created and edited from the Cashflow tab, or from the corresponding item's tab. For example, you can record an asset's sale from the Assets tab, or on the Cashflow tab. In either case, the data will be updated in the other place as well.
  • Category: When defining a standard transaction, you must assign a category to the transaction. The list of categories automatically changes depending on whether you are recording a deposit or a withdrawal.
  • Item: When defining a transaction, if you select the "Asset Sale" or "Debt Payment" category, a list of defined estate items (i.e., assets or debts) will become available in the "Item" field. Grayed out items are unavailable for selection (for example, because they've already been paid off, sold, distributed, or whatever). You can narrow the list by typing a sequence of letters that must appear in the item's name.
  • Include Older Transactions: Because you may end up recording a significant number of transactions throughout the course of managing the estate, EstateExec does not automatically show all transactions in the Cashflow table. To see more transactions, click the "Include Older Transactions" button in the bottom right of the table. If that button says "All dates included", it means there are no more transactions.

See also Using Tables for an illustration of many things you can do with EstateExec tables in general.

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