Inheritance proceeding (probate estate) in the US differs significantly from polish procedure in many key elements including initiation, debts managements or beneficiaries’ right and responsibilities. When a person passes away, the process of managing their estate depends largely on whether they died testate or intestate. A testate estate refers to a situation where the deceased has left behind a valid will, which specifies how their assets should be distributed according to their wishes. On the other hand, an intestate estate occurs when there is no will, and the assets are distributed according to state intestacy laws. These laws dictate how the deceased’s property is divided, usually favoring close relatives who are the deceased’s heirs. While a testate estate ensures a clear, personalized framework for the distribution of assets and minimizes potential conflicts, an intestate estate often gives rise to disputes among surviving relatives, particularly where the value of the assets is significant, which can result in lengthy legal battles and court involvement before a resolution is reached.
In the State of New York, if the deceased had a valid will, it must be filed with the Surrogate’s Court to be approved for probate. Probate is the process that ensures the will is legally accepted and allows the estate to be administered according to the Decedent’s wishes. Once approved, the Executor named in the will is appointed to manage and distribute the estate.
If the Decedent did not have a will, or if the will is found to be invalid by the court, the person is considered to have died intestate. In these cases, an Administration proceeding can be filed in the Surrogate’s Court to handle the estate according to New York’s intestacy laws. The assets will then be distributed to the Decedent’s heirs as specified by law. The person responsible for managing the estate in these situations is known as the Administrator, who is usually, but not always, a qualified distributee (heir) of the Decedent.
For estates with personal property valued at less than Fifty Thousand Dollars ($50,000), New York law allows an interested party to file for a Voluntary Administration proceeding. This streamlined process can speed up the distribution of assets, whether the Decedent died with or without a will.
The complexity of probate and administration proceedings can vary significantly based on the unique circumstances surrounding the Decedent’s estate, as well as the particular state in which the Decedent passed away. While the procedures discussed in this article pertain to New York, it is important to note that the administration of estates does typically differ depending on whether the Decedent resided in or had assets located in other states, such as California, Texas, Arizona, or any other jurisdiction. Each state has its own set of laws and procedural requirements, which can lead to variations in how the estate is managed. However, despite these differences, the overall trajectory of estate administration remains largely consistent across states, following a similar structure from probate or administration to the distribution of assets.
This article will briefly discuss some of the most basic and general steps involved in estate administration and probate proceedings. It will cover four major steps that are typically applicable to both types of proceedings: first, filing a petition with the Surrogate’s Court; second, notifying interested parties and establishing the appointment of an Executor or Administrator; third, identifying, investigating, and managing the assets, debts, and tax obligations of the estate; and finally, distributing the assets, settling, and closing the estate. It is important to note that, especially in complex or higher-valued estates, the administration and probate processes and the various issues that arise can and often are much more complicated.
THE FOUR KEY STAGES IN THE NEW YORK PROBATE AND ESTATE ADMINISTRATION PROCESS EXPLAINED
- File a Petition with the Surrogate’s Court.
The first step in the probate or estate administration process is for the petitioner (the person initiating the case) to file the appropriate forms with the Surrogate’s Court. This petition formally begins the process of Estate administration and is typically filed in the county where the Decedent had their domicile at the time of their death. If the Decedent lived outside of New York but owned property in the state of New York, the case is typically filed in the county where the property is located. The filing process requires the payment of a filing fee, which can vary depending on the value of the estate. The petition forms must contain detailed and accurate information about the Decedent, including their name, date of death, the location and details of any will, as well as the names of the Executor or Administrator seeking to handle the estate. Additionally, the petition will require information about the surviving relatives (called “distributees”) who are entitled to inherit the estate under EPTL 4-1.1 and 4-1.2. This includes individuals like the spouse, children, parents, siblings, and even more distant relatives such as grandparents, aunts, uncles, and first cousins once removed. The forms may also ask for details about any successor Executors or Trustees, as well as beneficiaries named in the will (if any) and require information about the Decedent’s assets and debts. In addition to these forms, the court will require supporting evidence, such as a death certificate and proof of paid funeral bills. Given the complexity of these forms and the potential for delays caused by errors, it is critical to ensure that all information submitted is complete and accurate. Even estates that seem straightforward can take months or even years to settle, as the process and its length can depend on many factors, for example, on how complete the legal documents are, the value and scope of the assets involved, or the number of beneficiaries and their residence status. Therefore, it is critical to ensure a thorough, error-free filing from the get-go to avoid any unnecessary administrative or procedural delays.
- Notify Interested Parties and Establish an Appointment as Executor/Administrator.
Once an appropriate petition is filed, the next step typically involves ensuring that all necessary parties to the proceeding, receive formal notice (“citation”) of the Probate or the Administration proceedings. This notice is important for the Surrogate’s Court to gain jurisdiction over interested parties and informs the distributes that the petitioner is seeking appointment as either the Administrator or the Executor of the decedent’s Estate. If there is a Will it is at this stage that the Court will confirm its proper execution and validity. The Petitioner may also obtain the so-called “Waiver and Consent” from the decedent’s heirs who by executing the same waives the issuance and service of citation. Otherwise, the petitioner will need to ensure the appropriate service of the citation to the distributees. If everything is in order—unless there are any challenges from potential beneficiaries as to the validity of the will or the appointment of the executor or the administrator—the court will issue a decree granting probate and issuing Letters Testamentary to the nominated executor; or Letters of Administration to the nominated administrator, allowing them to manage the estate.
- Identify, Investigate and Manage the Assets, Debts and Tax Obligations of the Estate.
Upon receiving the appropriate court decree and Letters Testamentary or Letters of Administration, the Executor or Administrator assumes significant fiduciary responsibilities in overseeing the administration of the estate. As fiduciaries, they assume the so-called “fiduciary duties”, which include acting in the best interests of the beneficiaries, acting in good faith, exercising due care and diligence in managing the estate, and maintaining detailed records of all income, expenses, and transactions. In return for fulfilling these responsibilities, both Executors and Administrators are entitled to compensation. This compensation typically takes the form of a commission, which is usually a percentage of the estate’s value. For instance, under New York’s Surrogate’s Court Procedure Act (SCPA) § 2307, fiduciaries (excluding trustees) are entitled to a commission of 5% for estates valued at $100,000 or less, and 2% for estates valued at $5 million or more, with additional commission rates for estates falling in between these values. In certain cases, the Decedent’s Last Will and Testament may specify the Executor’s compensation, potentially altering these standard rates.
This stage in estate administration involves a detailed and often lengthy process of identifying and locating the decedent’s assets, preparing a comprehensive inventory, and identifying any outstanding debts. Fiduciaries are also responsible for settling legitimate debts, including handling the final income taxes owed by the decedent, estate taxes, and even any income taxes that may apply to the estate itself. Therefore it is critical that the Executor or the Administrator undertakes a thorough and diligent search for all possible assets including but not limited to real estate properties, vehicles, motorcycles, boats, jewelry, collectibles, furniture, artwork, savings, checking, and investment accounts. Additionally, they must determine the estate’s tax liability, and settle debts including but not limited to unpaid medical bills, car loans, mortgages, and credit card debts (in a certain priority established by the law) in preparation for final distribution of assets to the beneficiaries or the closest living relatives under New York laws of Intestate Succession.
Generally, an estate is a distinct entity from the Decedent and it is the Fiduciary’s responsibility to obtain a Tax Identification Number (TIN) from the Internal Revenue Service (IRS), especially if there are assets to be probated or if the estate is expected to generate income during the administration process. Upon the receipt of the EIN, the Fiduciary may open an estate checking and/or savings account to collect and manage all of the decedent’s assets.
Furthermore, it should be noted that even if the decedent died with a will, there may be assets that are considered ‘non-probate’ –assets over which the Fiduciary will typically have no authority such as Life Insurance proceeds or jointly-held properties, Transfer-on-Death (TOD) / Payable-on-Death (POD) accounts. While these assets pass to the named beneficiaries by operation of law, they typically still need to be diligently investigated and included on the appropriate tax returns for the estate. Lastly, a surviving spouses in New York are protected by law from being fully disinherited and under EPTL §5-1.1-A they have the right of spousal election (“elective share”)—regardless of whether their deceased husband or wife left a valid will. This applies also in situations where the deceased spouse intentionally excluded their spouses from inheriting.
Throughout the administration, the Fiduciary is required to provide a comprehensive explanation to the beneficiaries regarding every asset collected, the financial performance of the estate—including any gains, losses, and income generated—settlement of tax obligations, and the payment of debts. Additionally, the Fiduciary must account for any distributions and in some circumstances, the Fiduciary may also be required to present this information in front of the judge.
It is almost always advisable to engage an experienced attorney to provide guidance and assistance in managing the complexities of estate administration, ensuring the process is conducted efficiently and in full compliance with the law. With the right legal expertise, Executors and Administrators can navigate these responsibilities with confidence, minimizing potential disputes and safeguarding the interests of all parties involved.
- Distribute the Assets, Settle and Close the Estate.
The fourth and final major stage of estate administration involves distributing the balance of the estate in accordance with the decedent’s Will or, in the absence of a valid Will, in accordance with New York’s laws of Intestate Succession. In some cases, the Fiduciary may distribute part of the estate’s assets sooner, particularly if the estate is of significant value and it is anticipated that settling the entire estate may take months or even years. However, whenever early partial distributions are made, it is prudent to account for any potential debts that may arise unexpectedly after the distribution. Under New York law, if a substantial portion of the estate has been distributed before all obligations are settled, and the Estate cannot afford to settle them, the Fiduciary could be held personally liable for any remaining debts, particularly if the distributed assets cannot be recovered. At the final stage of estate administration, the Fiduciary is required to prepare a formal or informal accounting, detailing all assets and transactions that occurred throughout the proceedings. Closing the estate releases the Fiduciary from any liability associated with the management of the decedent’s estate. Typically, it is at this stage that the Fiduciary will collect their commission and be reimbursed for any reasonable expenses incurred during the probate or administration proceedings.
How KBIW KURPIEJEWSKI & ASSOCIATES, PLLC Can Help
While engaging an attorney for probate and estate administration proceedings is not required, it can make a world of difference given the many complex legal, financial, and procedural issues that must be addressed throughout the estate administration process, as well as the substantial responsibilities placed on fiduciaries. Just as the court has the authority to issue Letters Testamentary to the nominated Executor or Letters of Administration to the appointed Administrator, it also holds the power to suspend, modify, or revoke those letters in cases of improper estate management or failure to account for the estate’s assets, as well as neglect of the court’s orders.
KBIW KURPIEJEWSKI & ASSOCIATES, PLLC provides comprehensive assistance in all aspects of estate administration, including petitioning the court for the appointment of the fiduciary, marshalling and securing assets, managing tax obligations, settling debts, and ensuring full compliance with relevant legal and procedural requirements. Depending on the circumstances, we offer our services on either a percentage-based fee structure based on the estate’s value or an hourly rate. While the engagement of an attorney does involve an additional cost, the advantages of minimizing legal claims against the estate, ensuring accurate documentation to avoid delays or rejections, and benefiting from continuous legal guidance throughout the process far outweigh the expense. Additionally, our Office can help ensure proper asset protection, settlement of legitimate debts and estate obligations, reduce stress for the fiduciary, and mitigate the risk of potential lawsuits against both the fiduciary and the estate.
Additionally, KBIW KURPIEJEWSKI & ASSOCIATES, PLLC offers legal assistance in handling complex estate-related litigation, including Will contests, trust disputes, issues of undue influence, breaches of fiduciary duty, including fraud and self-dealing, as well as disputes over distribution and accounting.
To schedule a consultation about your Estate matter, and learn how we can help you, please call us at (212) 220-3956 or email office@kbiw.com.
Disclaimer: The information provided on this website is intended for general informational purposes only and should not be construed as legal advice. This site constitutes attorney advertising. Past case results do not guarantee future outcomes, as each case is unique. The law is constantly evolving, and the information on this website may not reflect the most current legal developments. Please note that reliance on this information does not establish an attorney-client relationship. While every effort has been made to ensure accuracy, the author and publisher assume no responsibility for any errors or omissions contained herein. Readers should always consult with a qualified attorney regarding their specific circumstances. Contacting us through this website, including any submission of information, does not create an attorney-client relationship, nor should it be construed as such. No attorney-client relationship will be established until a formal agreement is signed, and fees are paid.
RYBOXX DESIGN - Robert Ryba