New York Probate Accounting Guide | Settled

New York probate accounting is the record of estate money, property, expenses, claims, commissions, and distributions handled by an executor or administrator. Even when no court accounting is filed, the fiduciary needs records that can explain each estate transaction.

Use this guide to sort what to track, when accounting becomes formal, and how accounting connects to creditor claims, taxes, commissions, releases, and final distribution.

What Probate Accounting Covers

Probate accounting answers three questions:

What did the fiduciary receive?
What did the fiduciary pay or sell?
What remains for distribution?

The answer may live in working records, an informal beneficiary packet, receipts and releases, or a formal Surrogate's Court accounting. The right path depends on the estate, the will, beneficiary cooperation, court orders, and dispute risk.

For the broader job description, start with the New York executor duties guide.

Who Handles the Accounting

The fiduciary handles estate records. That may be:

An executor named in a will after letters testamentary issue.
An administrator in a no-will estate after letters of administration issue.
A preliminary executor or temporary administrator, if the court issued limited authority.
A voluntary administrator in a qualifying small estate.

Authority matters. A person named in a will can gather information before appointment, but banks, title companies, and agencies often wait for court papers before treating that person as the estate fiduciary.

Records to Keep From Day One

Start a transaction log when letters issue. Keep estate records separate from personal records.

Track:

Date-of-death balances and values.
Estate bank account deposits.
Refunds, rent, dividends, interest, sale proceeds, and tax refunds.
Funeral expenses and administration expenses.
Court filing fees.
Legal, accounting, appraisal, storage, repair, insurance, and property costs.
Creditor claims and payment decisions.
Fiduciary commissions.
Tax payments and returns.
Distributions and beneficiary receipts.
Assets still held.

Save account statements, invoices, canceled checks, closing statements, appraisals, tax filings, and correspondence. A clean file makes beneficiary questions easier to answer and reduces scramble if a formal account becomes needed.

Estate Account Setup

Use an estate account when the fiduciary has authority and the bank accepts the court papers. Deposit estate funds into that account instead of a personal account. If the fiduciary pays an early expense before the account opens, keep the invoice, proof of payment, and reimbursement record together.

Label deposits as clearly as possible. A refund, rent payment, sale deposit, or insurance check may look unclear months later unless the memo, source letter, or statement explains it. Good labels help the fiduciary answer beneficiary questions and prepare a cleaner informal account.

Receipts: What Came Into the Estate

Receipts include property and money received by the fiduciary.

Common receipts include:

Bank balances.
Brokerage and investment accounts.
Sale proceeds from real property or personal property.
Rent collected after death.
Dividends and interest.
Insurance payable to the estate.
Refunds.
Business income.
Tax refunds.

List receipts by date, source, amount, and account. For noncash property, keep valuation records. For real property, keep the deed, appraisal or broker price support, closing statement, and expense records.

Disbursements: What the Estate Paid

Disbursements are payments from the estate.

Common disbursements include:

Funeral and burial costs.
Court fees.
Legal fees.
Fiduciary commissions.
Appraisal and tax preparation fees.
Mortgage, utilities, insurance, taxes, and repairs.
Creditor claim payments.
Storage, maintenance, or sale costs.
Distributions to beneficiaries.

Each payment needs a payee, date, amount, and reason. Pay from the estate account when possible. Avoid cash. Avoid personal accounts. If a fiduciary reimburses an expense, keep the original invoice, proof of payment, and reimbursement record.

Claims, Reserves, and the 7-Month Rule

Accounting connects directly to creditor claims. SCPA 1803 says a claim against a decedent's estate generally needs to be in writing, state the facts and amount, and be presented to the fiduciary by personal delivery or certified mail.

SCPA 1802 gives fiduciaries a 7-month distribution-risk rule. If a claim is not presented within 7 months from the date letters were first issued to any fiduciary, the fiduciary is not chargeable for assets or money paid in good faith before that claim was presented.

That rule does not erase known debts. It helps frame distribution risk. Keep claim records, payment support, and reserves until debts, taxes, and expenses are clear enough for distribution.

For the claim workflow, use the New York creditor claims guide.

Taxes and Accounting

Tax work can affect the accounting.

The New York State Tax Department says required New York estate tax returns and payments are generally due within 9 months after death. The IRS estate tax page says federal Form 706 is generally due 9 months after death when required.

Even when estate tax is not required, the fiduciary may need final personal income tax returns, estate income tax returns, or tax identification work. Track tax payments, refunds, professional fees, and reserves.

Do not close the estate account before tax questions are resolved.

Fiduciary Commissions

New York SCPA 2307 sets a tiered commission schedule for fiduciaries other than trustees. The tiers include 5 percent on the first $100,000, 4 percent on the next $200,000, 3 percent on the next $700,000, 2.5 percent on the next $4,000,000, and 2 percent above $5,000,000.

Commission questions can change when there are multiple fiduciaries, will language that changes compensation, real property treatment, a corporate fiduciary, or unusual receipts and disbursements.

Record the calculation before payment. Keep the statute, asset base, and math in the estate file.

Informal Accounting and Releases

Many estates close without a contested judicial accounting. Beneficiaries may receive an informal accounting, then sign receipts and releases if they agree with the distribution.

An informal packet often includes:

Starting inventory.
Receipts.
Expenses and claims.
Proposed commissions.
Tax reserves or tax closing status.
Proposed distributions.
Receipts or releases for beneficiaries to review.

Do not pressure a beneficiary to sign. If a beneficiary refuses, is missing, is a minor, lacks capacity, or objects, the fiduciary may need court involvement.

Judicial Settlement of an Account

SCPA 2208 allows a fiduciary to present an account for judicial settlement after the claim period fixed by published notice has expired or 7 months have passed since letters issued to the original fiduciary. A judicial settlement asks Surrogate's Court to review and settle the fiduciary's account.

This can matter when:

Beneficiaries disagree.
A fiduciary wants court approval before distribution.
Releases are not available.
A prior fiduciary needs discharge.
The estate has disputed claims or hard asset questions.
The court orders an account.

Judicial settlement is a court process. Ask a New York probate attorney before filing an account or citation packet.

Final Distribution and Closing

Before final distribution, check:

Letters and court authority.
Asset collection.
Claim records and reserves.
Tax filings and reserves.
Sale closing statements.
Commission calculation.
Beneficiary addresses and payment instructions.
Receipts, releases, or court approval.

Keep records after closing. Beneficiaries, tax agencies, title companies, or the court may ask questions later.

Common Accounting Problems

Common problems include:

No estate bank account.
Mixed personal and estate funds.
Missing receipts.
Early distribution before claims or taxes are reviewed.
No proof for reimbursed expenses.
Commission paid without support.
Real property sale costs not tracked.
Beneficiary advances not documented.
Estate account closed before tax refunds or bills arrive.

Fix records as soon as a gap appears. Waiting until the end makes accounting harder.

FAQ

Does every New York estate file a formal probate accounting?

No. Some estates use informal accounting and beneficiary releases. Court accounting may be needed when the court orders it, beneficiaries object, releases are unavailable, or the fiduciary seeks judicial settlement.

What is included in a New York probate accounting?

It usually tracks assets received, income, sale proceeds, expenses, claims, taxes, commissions, distributions, and assets still held.

When can a New York fiduciary ask for judicial settlement?

SCPA 2208 allows a fiduciary to present an account after the claim period fixed by published notice has expired or 7 months have passed since letters issued to the original fiduciary.

Does accounting affect executor commissions?

Yes. The commission calculation needs support, and the accounting needs to show any commission paid or proposed.

Can a beneficiary ask questions about estate records?

Often yes. Beneficiary rights depend on the estate, will, court posture, and accounting path. Get legal help when a dispute appears.

Sources:

"Surrogate's Court Procedure Act Section 1802," New York State Senate, revision from November 22, 2019, https://www.nysenate.gov/legislation/laws/SCP/1802
"Surrogate's Court Procedure Act Section 1803," New York State Senate, revision from November 22, 2019, https://www.nysenate.gov/legislation/laws/SCP/1803
"Surrogate's Court Procedure Act Section 2208," New York State Senate, revision from September 22, 2014, https://www.nysenate.gov/legislation/laws/SCP/2208
"Surrogate's Court Procedure Act Section 2307," New York State Senate, revision from January 10, 2020, https://www.nysenate.gov/legislation/laws/SCP/2307
"Estates, Powers and Trusts Law Section 11-1.6," New York State Senate, current statute page, https://www.nysenate.gov/legislation/laws/EPT/11-1.6
"Estate tax," New York State Department of Taxation and Finance, updated December 3, 2025, https://www.tax.ny.gov/pit/estate/etidx.htm
"Estate tax," Internal Revenue Service, current IRS topic page, https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax

This guide gives general information about New York probate accounting. It is not legal advice.