ACCOUNTING FOR THE ASSETS OF AN ESTATE
Accounting for the management of Estate assets, expenses and debts is an important part of the job of an Executor of Administrator that is often misunderstood.
The Executor or Administrator of an estate must give a detailed account of the:
assets of the estate received,
income earned by the assets of the estate,
expenses incurred in administering the estate,
debts paid on behalf of the decedent or the estate,
payment of claims against the estate,
loss/decrease of assets of the estate,
distributions made to beneficiaries/distributees
and other actions taken by the Executor/Administrator in settling the affairs of the estate.
As Executor/Administrator, you have the option of preparing an Informal Accounting, submitting that document with a Receipt and Release to the distributees or Beneficiaries of the estate and then filing the original Receipt and Releases with the Surrogate's Court.
When unresolved issues exist, an Executor/Administrator can petition the Surrogate's Court to settle his/her handling of the Estate (account). See SCPA 2208 and SCPA 2206.
An Executor/Administrator can be compelled by Surrogate's Court Order to file an Accounting (by petition of an interested party). See SCPA 2205. The failure to Account can result in an Order of Contempt of Court, Suspension, Revocation of Letters (removal) or even a Surcharge.
The accounting filed with the Surrogate's Court is actually a Petition (pleading) with related financial and informational schedules attached. A Citation is issued and served upon parties with a legal or statutory interest in the Estate who will often file a responsive pleading (Answer or Objections) to the Petition and demand Discovery proceedings.
The Executor or Administrator of an estate must give a detailed account of the:
assets of the estate received,
income earned by the assets of the estate,
expenses incurred in administering the estate,
debts paid on behalf of the decedent or the estate,
payment of claims against the estate,
loss/decrease of assets of the estate,
distributions made to beneficiaries/distributees
and other actions taken by the Executor/Administrator in settling the affairs of the estate.
As Executor/Administrator, you have the option of preparing an Informal Accounting, submitting that document with a Receipt and Release to the distributees or Beneficiaries of the estate and then filing the original Receipt and Releases with the Surrogate's Court.
When unresolved issues exist, an Executor/Administrator can petition the Surrogate's Court to settle his/her handling of the Estate (account). See SCPA 2208 and SCPA 2206.
An Executor/Administrator can be compelled by Surrogate's Court Order to file an Accounting (by petition of an interested party). See SCPA 2205. The failure to Account can result in an Order of Contempt of Court, Suspension, Revocation of Letters (removal) or even a Surcharge.
The accounting filed with the Surrogate's Court is actually a Petition (pleading) with related financial and informational schedules attached. A Citation is issued and served upon parties with a legal or statutory interest in the Estate who will often file a responsive pleading (Answer or Objections) to the Petition and demand Discovery proceedings.
