Work that follows the appointment
Once Surrogate's Court issues letters, the fiduciary takes legal responsibility for gathering the estate's property, protecting it, and eventually handing it to the right people. In practice that means opening an estate bank account under its own tax identification number, collecting accounts that were in the deceased person's name, keeping real estate secured and insured, and dealing with creditors. Final income tax returns, and in larger estates estate tax returns, also fall to the executor or administrator. Mistakes in this stage tend to be practical rather than dramatic, such as paying a beneficiary before debts are known or mixing estate money with personal funds, and they can leave the fiduciary personally responsible.
Records a fiduciary should keep
Keep every statement, receipt, and invoice that touches the estate, and log each payment in and out with its date and purpose. Beneficiaries are entitled to understand what happened, and New York fiduciaries can be required to file a formal accounting with the court. Record the value of assets as of the date of death, because that figure matters for taxes and for later distributions. Correspondence with creditors and with family members belongs in the file as well. If you are unsure whether a payment is proper, ask your lawyer before making it rather than afterward.
Planning the path to distribution
In an early meeting we build a working calendar for the estate, including the creditor and tax issues that need resolving before money goes out. We also talk about whether beneficiaries are likely to accept an informal accounting with receipts and releases or whether a judicial accounting makes more sense, which can depend on how well the family gets along. Selling real estate or a business interest raises its own questions about authority and timing. Executors are often entitled to commissions under New York law, and we explain in general terms how those are figured. The aim is to close the estate cleanly, with a record that answers questions before they are asked.
