E294 How to Close a Probate Estate in New York

<p>After many months (maybe years), the estate is finally nearly finished. What are the final steps to close probate? We’ll explain the accounting, receipt and releases, and the reserve.</p> <h2>What is the estate accounting?</h2> <p>The estate accounting are the full books and records of everything that has transpired during the executor’s duty of administering the estate. It accounts for every dollar in and out, every asset collected and sold, and what is left over.</p> <p>Sometimes preparing the accounting can take a while because:</p> <ol> <li>It takes time to get all bank statements, records, and identify missing transactions.</li> <li>The documentation has to be compiled into a court-specified format, so you need a specific type of accountant or lawyer to prepare the accounting. We’re not talking about the guy who prepares your 1040 or the lawyer who drafted your LLC.</li> <li>Unfortunately, the court requires a very niche type of format, and you must account for and balance every penny. The accounting often spans more than 1-2 years with complex transactions (stock sales, real estate closings, business sale, etc.). It is a thick stack of paper!</li> </ol> <p>This is the executor’s opportunity to show everything he has done for the estate. This is also the opportunity for the heirs to either object to or accept the accounting.</p> <h2>Why must heirs sign a receipt, release and refunding agreement?</h2> <p>The heirs have the chance to review the accounting, and they can hire their own attorney to help them understand it, if they wish. If there are no objections, the heirs are asked to sign a s receipt, release, and refunding agreement. Here, we’ll discuss the three elements of the agreement.</p> <ol> <li>Receipt</li> </ol> <p>The heir acknowledges receipt of the money. This seems a bit odd, since the heirs sign this BEFORE actually receiving the check. It's understandable for heirs to be nervous, but the only alternative is to hold a closing to coordinate simultaneous exchange and court filing. Otherwise, we