Probate Plus knowledgebase
Find out more at: https://probate.plus/

What does 'Notionally Collected' mean?

As you'll read in the other articles about Cash Tracking Accounts in this Knowledgebase, when you add a new asset to Probate Plus which happens to be a pool of cash, you'll want to set up a Cash Tracker to monitor it during administration.

On adding the asset, immediately 'realise' that cash (e.g. a bank/building society balance) into a Cash Tracking Account. We need to do this because we want an opening balance in our Cash Tracker. This prompts the system to describe that asset as having been 'notionally collected'. A description which sometimes confuses users. Here we explain what that means.

If this cash is held by a bank, this account has not yet been closed down in real life. The system regards it as 'realised' because from this point on you - as the administrator - have taken control over monitoring its ongoing changes in balance. Even if an Executor or other party is managing the day to day management of that account, rather than yourself, you are responsible for accounting for it during administration and knowing what's going on, so that the estate accounts are kept balanced.

When you run an Assets report you will also see the words 'notionally collected' and that asset shown in the 'realised' column. Unless you appreciate all the above, you or your clients may misinterpret this as an asset as having been completely dealt with. If you wish to, you can change the description to something else if you prefer by clicking on the original ‘realisation’ posting. You can do this at the outset, or once the bank account has in fact been closed.

 

Have more questions? Submit a request
Powered by Zendesk