New York Probate Lawyer Blog
What Are the Responsibilities of an Estate Executor in New York?
The New York Probate Lawyer Blog has published dozens of articles discussing the many considerations which arise upon a person’s death. One essential item is whether a decedent had a Last Will and Testament. If so, it is essential that the original signed copy of the Will be obtained to be filed with the Surrogate’s Court. The probate process is very difficult to complete with only a copy of a Will. While I have succeeded in probating a copy of a Will in the past, to do so requires special proof and circumstances. Also, a Will is going to designate beneficiaries, executors, and sometimes trustees. The named executor typically initiates the probate process.
Who Inherits When Someone Dies Without a Will in New York?
In the event a decedent dies without a Will, then the persons who inherit are the decedent’s next of kin who are identified in the Estates, Powers and Trusts Law Section 4-1.1 entitled “Descent and distribution of a decedent’s estate.” The individuals who could qualify to be appointed as the estate administrator are set forth in Surrogate’s Court Procedure Act Section 1001 entitled “Order of priority for granting letters of administration.”
What Are an Estate Fiduciary’s Tax Obligations?
Regardless of whether an estate is one in which a Will is probated or is controlled by the laws of intestacy, the estate Executor or Administrator is obligated to investigate, marshal, and protect estate assets. Also, the estate fiduciary must determine and satisfy all estate debts and obligations including any taxes owed by the estate. This includes all types of taxes including income taxes incurred by a decedent before death and after death and estate taxes due to federal and state jurisdictions.
At the present time, 2026, the federal estate tax exemption is $15 million dollars. The New York State exemption is $7,350,000. While most estates are not subject to estate taxes, given the large valuations for real property, an estate fiduciary should always bear in mind the possibility of taxation and identify and value all assets for estate tax purposes.
How Are Assets Valued for Estate Tax Purposes?
As a generality, an estate is valued as of a decedent’s date of death. Most assets are easy to value such as balances in financial accounts. Even real estate such as residences can be appraised with reasonable accuracy. However, if a decedent owned a business or intellectual property or other less ordinary assets, valuations become much more complex to value.
How Did Michael Jackson’s Estate Challenge the IRS?
Such was the case with the pop icon Michael Jackson. As reported in an article in The Hollywood Reporter, Esq., on May 3, 2021 by Ashley Cullins, the IRS had valued the likeness and image of Michael Jackson at approximately $434 million dollars. However, the estate claimed that this value was only about $2,000.00 at the time of death. Ultimately, a U.S. Tax Court judge valued the likeness to be about $4.15 million dollars.
Why Is Accurate Asset Valuation Important in Estate Administration?
While most estates do not contain as complex and valuable assets as a pop star, today’s business environment may have estates owning diverse assets in AI investments, bitcoin, internet start-ups and other such endeavors. Thus, an estate administrator, executor, or trustee may need to be proactive in understanding and valuing all aspects of an estate.
What Should an Estate Executor or Administrator Do When Settling an Estate?
As can be seen, an estate fiduciary has a lot of obligations when settling an estate. I have represented estate fiduciaries and beneficiaries in all aspects of an estate from probate, administration, to accountings. Do you have a question regarding an estate? Call me for a free confidential review of your issue. We provide reasonable and flexible fee arrangements and personal representation.
Frequently Asked Questions About Estate Taxes and Asset Valuation
What are the responsibilities of an estate executor in New York?
The estate Executor or Administrator is obligated to investigate, marshal, and protect estate assets. Also, the estate fiduciary must determine and satisfy all estate debts and obligations including any taxes owed by the estate.
Who inherits if someone dies without a Will in New York?
The persons who inherit are the decedent’s next of kin who are identified in the Estates, Powers and Trusts Law Section 4-1.1 entitled “Descent and distribution of a decedent’s estate.”
How are estate assets valued for tax purposes?
As a generality, an estate is valued as of a decedent’s date of death. Most assets are easy to value such as balances in financial accounts. However, if a decedent owned a business or intellectual property or other less ordinary assets, valuations become much more complex to value.
How did Michael Jackson’s estate challenge the IRS valuation?
The IRS had valued the likeness and image of Michael Jackson at approximately $434 million dollars. However, the estate claimed that this value was only about $2,000.00 at the time of death. Ultimately, a U.S. Tax Court judge valued the likeness to be about $4.15 million dollars.
Why is accurate asset valuation important in estate administration?
An estate administrator, executor, or trustee may need to be proactive in understanding and valuing all aspects of an estate.
Do You Have Questions Regarding an Estate?
I have represented estate fiduciaries and beneficiaries in all aspects of an estate from probate, administration, to accountings. Do you have a question regarding an estate? Call me for a free confidential review of your issue. We provide reasonable and flexible fee arrangements and personal representation.
Contact New York Trusts and Estates Attorney Jules Martin Haas
New York Trusts and Estates Attorney Jules Martin Haas has helped many clients over the past 40 years resolve issues relating to guardianship and probate and estate settlement throughout New York City including Bronx, Queens, Brooklyn, Manhattan, Nassau and Suffolk Counties. Call (212) 355-2575 for an initial free consultation.