Ian Bryzek, CPA
Customer deposits or unearned revenue after death
Prepaid customer funds are liabilities that need a contract-level list at death.
Track which jobs were later completed, refunded, or abandoned. Do not treat deposits as free cash in the estate ledger.
Revenue recognition after death follows the contracts and method already in use—document status changes.
What to keep with the file
Revenue recognition after death follows the contracts and method already in use—document status changes.
What to do next
List every customer deposit and its later completion or refund status.
What to gather
- Customer deposit ledger at death
- Contracts or invoices explaining deposits
- Refunds issued after death
- Completion records for prepaid jobs
- Accounting method notes from prior returns
Who usually handles what
- Ian can organize the tax reporting question and the supporting records.
- The executor, trustee, or account custodian supplies records and confirms who has authority to act.
A practical next step
List every customer deposit and its later completion or refund status.
Related guides
This is general tax information, not tax or legal advice. Outcomes depend on the documents, ownership, timing, and law that apply to the particular facts.