Legal Question in Wills and Trusts in New York

Re: accounting for every penny

The probate statutes require every executor or administrator appointed to render an accounting to the Surrogate's Court, unless waived by the heirs. Also, due to the fiduciary nature of the position, the heirs are also entitled to an accounting, to verify they have received what they are entitled to get. Finally, to be relieved from the Court for your requirements to it, certain documents must be obtained from the heirs. In my practice, I usually accomplish all of this by an approved procedure - I provide a simple, informal accounting (more by category than specific items), have the heirs sign a Waiver, Consent and Approval letter (saying the have received a copy of the informal accounting, waive the requirement of a formal judicial accounting (which requires exact listing of every item of income and expense), approve the accounting and consent to the proposed distribution of the estate included in the accounting). It is usually not precise, since there are time delays in sending it out and getting the approval, during which time there may be some additional income (interest, stock dividends, etc.) received. The heirs are told that any additional income will be added to their final distribution payment. Most important, I also obtain a Refunding Bond and Release from each heir, acknowledging they have received their distribution. When this document is filed with the Surrogate's Court by all of the heirs, your reporting, accounting and service requirements to the Court are terminated and the estate is closed. These are documents I can assist you in preparing (accounting and Refunding Bond) if you need them (You can call me at <973>-377-3313 or write me at [email protected]). All costs for the accounting (informal or formal judicial) and Refunding Bond are charges against the estate, so they are paid by out of the estate assets and reduce what the heirs will finally receive.

Walter