How to File a Statement in Lieu of Accounting in Virginia

In Virginia, a Statement in Lieu of Accounting lets a personal representative skip filing a full accounting with the commissioner of accounts, but only in a narrow circumstance: every person entitled to the residue of the estate must also be serving as a personal representative. When that fits, sworn Form CC-1681, filed after all debts are paid and the residue distributed, replaces the detailed accounting that Virginia Code 64.2-1304 would otherwise require.¹

Who Can Use This Filing

The eligibility rule is strict. If the decedent died intestate, every distributee must be serving as a personal representative. If the decedent left a will, every residuary beneficiary must be serving as a personal representative.¹ Co-representatives who are not themselves beneficiaries can serve alongside them; that’s fine. What matters is that no one entitled to a residuary share is on the outside looking in.

If even one residuary beneficiary or intestate distributee is not serving, the estate has to go through the full accounting process. Written consent from that beneficiary does not fix the problem. The statute requires actual service as personal representative, not agreement to waive review.

Two other limits. The Statement in Lieu is not available when the residuary beneficiary under the will is a trust.² And it applies only to decedent’s estates: trustees, conservators, and guardians have their own accounting duties and cannot use this form.

The Three Conditions You Must Swear To

The statement is made under oath, and it affirms three things:¹

All known charges against the estate — debts, taxes, and administration expenses — have been paid.
At least six months have passed since the personal representatives qualified in the clerk’s office. This window lets creditors come forward.
The residue has already been delivered to the distributees or residuary beneficiaries.

If the will made specific bequests, such as a piece of jewelry to one person or a cash gift to another, the statement must include an itemized listing of each specific bequest with vouchers or receipts showing it was fulfilled.¹ The commissioner needs to see that non-residuary beneficiaries got what the will promised before the residue was distributed.

A misrepresentation in the sworn statement can expose the personal representative to liability for breach of fiduciary duty. Once approved, the statement carries the same legal weight as a full accounting.

Form, Fee, and What to File

Use Form CC-1681, available from the Supreme Court of Virginia and from local commissioners of accounts.³ Every personal representative must sign, and the signatures must be notarized. File the original plus one copy with the commissioner of accounts.²

The uniform fee schedule set by the Supreme Court of Virginia lists the fee for a Statement in Lieu at $250. Individual commissioners may charge less or waive the fee, so check locally, but budget for the full amount.⁴

Attach receipts or vouchers for any specific bequests. Page 2 of the form only needs to be completed if someone entitled to copies under Virginia Code 64.2-1303 actually requested them in writing; if no one did, check the corresponding box and leave the page blank.

Copies to Interested Parties

The notice piece runs through Virginia Code 64.2-1303. Anyone who was notified of probate under Virginia Code 64.2-508 and then submitted a written request for copies of filings is entitled to receive a copy of the Statement in Lieu by first-class mail on or before the day you file it with the commissioner.⁵

The commissioner cannot approve the statement until 21 days have passed from receiving it, and only if the filing includes a certification that copies were mailed (with names, addresses, and dates) or that no one made a written request.⁵ The 21-day period gives recipients time to raise concerns.

The written request can arrive at any time and can cover one filing or all future filings, so an old request still counts. Filing without mailing the copy is one of the easier ways to have a Statement in Lieu bounced back.

Deadline and What to Do If You Can’t Finish in Time

The Statement in Lieu replaces the first accounting, so it inherits that deadline: 16 months from qualification, covering the first 12 months of administration.⁶ If everything is wrapped up by then, file and you’re done.

Many estates don’t finish that fast. Between the six-month waiting period and the time needed to pay bills and distribute assets, the 16-month mark can arrive first. In that case, Virginia Code 64.2-1314 lets you file a written notice of intent under oath, explaining that you plan to file a Statement in Lieu once the requirements are met and why you can’t file yet.¹ The uniform fee for the notice of intent is also $250.⁴

If the estate still isn’t ready after the first notice, follow-up notices or interim accounts must be filed annually until the Statement in Lieu is finally filed. The commissioner can also decide the explanation is not good enough and require a full interim accounting instead. A notice of intent buys time; it does not permanently excuse financial detail.

Commissioner Review

The commissioner checks that all personal representatives signed, that the sworn conditions are properly stated, that vouchers for specific bequests are attached, and that the 64.2-1303 copy requirements were met. If something is missing, the filing comes back for correction.

Once approved, the statement is treated as an “account stated” and is subject to the same provisions that apply to a regular settled account.¹ The commissioner files a report with the circuit court, and if no objections come in, the court confirms it. That confirmation effectively closes out the estate’s accounting duties.

If a recipient of the copy objects or questions how assets were handled, the commissioner can require additional documentation. Serious disputes can move to a court hearing, and the personal representative may end up filing a full accounting after all.

If You Miss the Deadline

Missing the 16-month deadline without filing a Statement in Lieu, a notice of intent, or a regular accounting triggers an enforcement process. Under Virginia Code 64.2-1216, the commissioner can either proceed directly against the fiduciary or report the delinquency to the circuit court on a list of non-filers submitted at least twice a year.⁷

The procedure under Virginia Code 64.2-1215 begins with a summons through the sheriff. If the filing still doesn’t happen within 30 days, the commissioner reports the failure to the circuit court, which issues its own summons. At that hearing the court can impose a fine of up to $500, and continued failure is treated as contempt.⁸ If the personal representative is a licensed attorney, the commissioner must also report the failure to the Virginia State Bar.⁷ Beneficiaries who believe assets were mismanaged during the delay can also pursue breach of fiduciary duty claims, and the personal representative’s surety bond can be at risk.

When Another Route Fits Better

If you don’t qualify for the Statement in Lieu, a full accounting under Virginia Code 64.2-1304 is the fallback. It requires vouchers for every disbursement, a schedule of receipts and disbursements, capital gains and adjustments, and a statement of assets on hand at period end.⁶ Subsequent accounts are due within four months of the end of each additional 12-month period. The uniform fees are higher too, starting at $275 for estates up to $50,000 and climbing with estate size.⁴

At the other end, if the entire personal probate estate is worth $75,000 or less, the heirs may be able to bypass formal administration altogether using Virginia’s small estate affidavit under Virginia Code 64.2-601.⁹ All known successors sign an affidavit at least 60 days after the death, and the holder of the asset transfers it directly. No personal representative qualifies, no inventory is filed, and no Statement in Lieu is needed.

1
Virginia Code Commission. Virginia Code 64.2-1314 – Statement in Lieu of Settlement of Accounts by Personal Representatives in Certain Circumstances
2
Supreme Court of Virginia. Instructions for Form CC-1681 – Statement in Lieu of Settlement of Account for Decedent’s Estate
3
Supreme Court of Virginia. Form CC-1681 – Statement in Lieu of Settlement of Account for Decedent’s Estate
4
Supreme Court of Virginia. Uniform Fee Schedule Guidelines for Commissioners of Accounts
5
Virginia Code Commission. Virginia Code 64.2-1303 – Copies of Inventories and Accounts
6
Virginia Code Commission. Virginia Code 64.2-1304 – Personal Representatives
7
Virginia Code Commission. Virginia Code 64.2-1216 – Failure to Account; Enforcement
8
Virginia Code Commission. Virginia Code 64.2-1215 – Power of Commissioner of Accounts to Enforce the Filing of Inventories
9
Virginia Code Commission. Virginia Code 64.2-601 – Payment or Delivery of Small Asset by Affidavit