Articles Posted in Accountings

An estate fiduciary can be an Executor, Administrator or Trustee. All fiduciaries have various duties and responsibilities. When a fiduciary fails to fulfill one of these obligations he may be found to have breached his fiduciary duty.

One of the most important duties of a fiduciary is to provide beneficiaries with an accounting of his financial activities. The New York Probate Lawyer Blog has discussed accounting proceedings in many earlier posts. In an accounting, there will be numerous schedules detailing the transactions that were engaged in. For instance, in Schedule A there will be a list of assets that were collected. Another Schedule provides details regarding income received during the time period of the account. Yet another Schedule will provide the items of expenses and payments that were made. Continue reading

The settlement of an estate in New York can be divided into three main categories. The first category or phase is the appointment of the fiduciary. When a decedent has a Last Will, then the Will needs to be filed with the Court and admitted to probate. Probate proceedings in the Surrogate’s Court can be contentious and involve Will Contests.   Once a Will is admitted to probate, an executor is appointed and the terms of the Will control the ultimate estate distributions.

When a decedent does not have a Will, then an Administration proceeding must be filed to have an Administrator appointed for the estate. The estate of a decedent who dies intestate (without a Will) is distributed to the decedent’s distributees (next of kin). The New York Probate Lawyer Blog has posted many articles concerning Probate and Administration proceedings. Continue reading

There have been numerous posts in the New York Probate Lawyer Blog which describe  the basic process to settle an estate.  A brief review of these facts is always helpful:

1.  First it is essential to determine whether the decedent died leaving a Last Will or without a Will (intestate). The existence or non-existence of a Will determines whether the procedure to be followed in Court involves the probate process or intestate administration.

2.  Once the process to be followed is ascertained, an appropriate petition and other papers need to be prepared and filed with the Surrogate’s Court.

3.  After all necessary estate papers have been filed with the Surrogate’s Court and the Court has approved the filing, an Executor or Administrator will be appointed. The fiduciary is granted Letters Testamentary in the case of a probate and Letters of Administration when a decedent dies intestate.

4.  Once appointed, the Executor or Administrator begins the process of estate settlement by collecting the decedent’s assets and paying the decedent’s debts and obligations along with estate administration expenses.

5.  The final stage of the estate is providing a payment of the net estate funds and assets to the beneficiaries. Typically, the fiduciary will prepare an accounting of the assets collected and payments made and provide this accounting statement to the beneficiaries so that they can review the basis for the distribution being made to them. Continue reading

The settlement of a decedent’s estate can be viewed as encompassing three stages. Estate Lawyers in New York City are familiar with this process. The first step involves the appointment of the estate representative. When a decedent leaves a Last Will and Testament the Will is filed with the Court and submitted for probate. Once the Will is admitted to probate, the Court appoints an Executor. In situations where the decedent dies intestate (without a Will), a proceeding for Letters of Administration is presented to the Court and the Court then appoints an estate Administrator.

After a fiduciary is appointed, the second stage of the estate settlement process involves the collection of estate assets and the payment debts, taxes and other obligations. As discussed in earlier posts in the New York Probate Lawyer Blog, both of the above stages can be filled with complex issues such as Will Contests and Surrogate’s Court Litigation regarding the assets and obligations of a decedent. Continue reading

An estate fiduciary such as an Executor and Administrator has many different obligations. The New York Probate Lawyer Blog has discussed many of these duties. For example, the fiduciary must locate, protect and collect estate assets. This function includes such tasks as closing a decedent’s bank accounts or brokerage accounts and depositing the funds into a newly established estate bank account.

Also, the fiduciary must pay a decedent’s debts and obligations. These items may include rent, mortgage payments, utility bills, income taxes and credit card payments. Another source of expenses are those incurred during the course of Estate Administration or Estate Settlement such as estate taxes, brokers fees that may be incurred if a decedent’s real estate needs to be sold and the costs of maintaining and protecting estate assets. Continue reading

A very common complaint that New York Estate Lawyers hear is that an estate beneficiary has not received his share of a decedent’s estate. Typically, the beneficiary, who may be a legatee under a Last Will or a distributee in an intestate administration, has been waiting for years to receive a payment. Sometimes all efforts to contact or receive a response from the Executor or Administrator have failed.

In earlier posts, it has been discussed that a fiduciary must account for his actions. The accounting that is provided to estate or trust beneficiaries includes a list of all assets and income received, all expenditures that have been paid and all expenses or claims that are still outstanding. Continue reading

The settlement of an estate in New York involves the preparation of an account by the fiduciary. Executors and Administrators need to assemble an account that provides information regarding the transactions that occurred during the administration of the estate.

New York estate lawyers are familiar with the provisions of the Surrogate’s Court Procedure Act (“SCPA”) that relate to accountings. These provisions are contained in Article 22 of the statute. The provisions of the law and the Surrogate’s Court Judges are generally liberal with regard to the right of an estate beneficiary to receive documents and information relating to a fiduciary’s handling of estate affairs.   SCPA Section 2211 provides, in part, that the fiduciary can be examined under oath either before or after objections are filed. This section also allows document discovery to occur during such examination period. As a result, an estate beneficiary can obtain copies of bank statements, brokerage statements, expense receipts and bills, estate tax returns and other papers that can provide information as to whether there are any issues concerning the accuracy or validity of the account. In the event the beneficiary feels that the account is improper he can file Objections with the Court. Continue reading

A fiduciary can be found in any number of different roles.  The Surrogate’s Court can appoint a New York Executor or Administrator to handle the affairs of a decedent’s estate.  The New York Supreme Court can appoint an Article 81 Guardian to be responsible for the property management and personal needs of an incapacitated person.  In all of these situations the appointed party is a fiduciary who has obligations and responsibilities.  The actions and performance of all fiduciaries are subject to review by the Court which typically occurs when the fiduciary prepares an accounting reflecting the transactions that have occurred during the tenure of the accounting party.  All persons interested in the matter have a right to review the accounting and to file objections concerning issues they believe constitute a breach of a fiduciary duty. There have been a number of recent court cases which provide interesting examples of the process of reviewing the propriety of fiduciary conduct.

Matter of Flynn was a case involving an accounting by an Article 81 Guardian.  Flynn was decided by Brooklyn Supreme Court Justice Michael L. Pesce on March 20, 2014.  A son of the incapacitated person filed Objections to the Guardian’s account essentially asserting that the use by the Guardian of in trust for accounts (“Totten Trusts”), which named the son as beneficiary, was improper.  After reviewing the evidence, the Court found that the Guardian’s use of these accounts, even without prior Court approval, was appropriate since the funds were needed and used for the interests of the incapacitated person.  The Court also found that the Guardian’s selection of a nursing home to which the funds were paid was also appropriate and did not waste the funds.  The Court dismissed the Objections as being without merit. Continue reading