What is an Estate Accounting in New York City

An estate accounting is a legally required review and report of all financial activity and property transactions during the administration of a deceased person’s estate. You would typically need the assistance of a New York estate accounting attorney. Here, we break down what New York estate accountings entail, when they must get filed, key procedural standards, and what information the detailed reports must contain.

In New York estates, a court-mandated estate accounting is a complete, accurate recording of cash inflows and outflows together with property transfers or sales conducted by estate executors or trustees. Accountings catalog all financial transactions in standardized categories prescribed by state courts.

The executor prepares the estate accounting and files it with the court. The probate court reviews the accounting, to guarantee complete, prudent handling of the decedent’s estate in the best interest of beneficiaries. They also inform heirs of assets, expenses paid, distributions made, and any sales or changes in property holdings.

When is an Accounting Required for Estates?

While requirements vary by state, New York mandates that estate representatives file an accounting when beneficiaries request it.

Informal vs. Formal Accounting

An accounting is informal when given to beneficiaries and formal when filed with the court.

Informal Accounting. Informal accounting can contain only a simple summary of the estate funds, such as the principal received, income generated, expenses, payment of debts, and remaining funds left for distribution to the beneficiaries.
Formal Accounting. A formal accounting is a thorough set of accounting for every single estate transaction, presented in a court-mandated manner, and reviewed by the court for completeness.

Stages of Accountings

Initial Accounting. Documents activity over first 18 months after appointment and letters testamentary
Intermediate Accounting. Covers any intervals beyond initial period as directed by court
Final Accounting. Submitted after total estate distribution and closure

In certain cases like contentious estates, the court may order supplemental accountings as well to monitor administration.

What is Involved in an Accounting

New York Estate Accounting Rules and Standards Strict procedural and documentation standards apply when preparing NY estate accountings, including:

Sorting all monetary or asset inflows/outflows into accounting categories using designated forms
Tracing transactions like income receipts or bill payments back to source documentation
Matching totals, ledger amounts, and reconciliations perfectly
Outlining distributions to heirs in specific required schedules
Filing papers in the court’s required organization format

What Key Parts Make Up an Estate Accounting

While requirements vary from the initial to final accounting, core reports include:

Schedule A	Statement of Principal Received
Schedule A1	Statement of Increases on Sales, Liquidation or Distribution
Schedule B	Statement of Decreases Due to Sales, Liquidation, Collection, Distribution or Uncollectibility
Schedule C	Statement of Funeral and Administration Expenses and Taxes Charged to Principal
Schedule C1	Statement of Unpaid Administration Expenses
Schedule D	Statement of All Creditor’s Claims
Schedule E	Statement of Distributions of Principal
Schedule F	Statement of New Investments, Exchanges and Stock Distributions
Schedule G	Statement of Principal Remaining on Hand
Schedule A2	Statement of All Income Collected
Schedule C2	Statement of Administration Expenses Charged to Income
Schedule E1	Statement of Distribution of Income
Schedule G1	Statement of Income on Hand
Schedule H	Statement of Interested Parties
Schedule I	Statement of Computation of Commissions
Schedule J	Statement of Other Pertinent Facts and Cash Reconciliation
Schedule K	Statement of Estate Taxes Paid and Allocation Thereof

Let our experienced New York accounting lawyers guide you through assembling compliant accountings ready for court submission. If you are an executor who would like help in putting together an estate accounting, we at the Law Offices of Albert Goodwin are here for you. We are located in Midtown Manhattan in New York City. You can call us at 212-233-1233 or send us an email at [email protected].