What is required to close an estate after distributions?

• A. A tax clearance from the IRS is required before closing.
• B. The estate must file a new inventory.
• C. The court must issue a new appointment.
• D. Final account approved, assets distributed, debts and taxes paid, receipts filed; fiduciary discharged.

Answer: (D)

Closing an estate after distributions centers on completing the court-approved final accounting and obtaining a discharge for the fiduciary. The final account verifies all assets, income, expenses, and each distribution to beneficiaries. Once the court approves this and the debts and taxes have been paid, the fiduciary files receipts for the distributions and is formally discharged. This discharge signals that duties are fulfilled and the estate administration is closed.

Other steps you might hear about, like obtaining a tax clearance from the IRS, filing a new inventory, or issuing a new appointment, are not required to close the estate in this context. The estate closes once the final account is approved, distributions are made, all debts and taxes are settled, receipts are filed, and the fiduciary is discharged.