What is Estate Administration in New York City

Estate administration involves identifying assets, paying any outstanding debts and taxes, and distributing the remaining assets to the heirs or beneficiaries. The rules of estate administration in New York can be complex with rigid procedures and deadlines that must be met.

To minimize any risk of incurring liability due to estate mismanagement, hiring an experienced New York estate administration attorney is highly recommended in settling an estate. An attorney well-versed in New York estate administration law can help guide you through the process, communicate with the Surrogate’s Court, navigate estate issues, and ensure proper distribution of assets to beneficiaries.

Small Estate vs. Formal Estate

The first step of estate administration is determining what kind of probate process will need to be filed in your case.

If the probate estate is not greater $50,000 and does not have any real property, it is a small estate to be managed under voluntary administration.

If the probate estate is greater than $50,000 and/or it owns real property:

• Petition for probate if the deceased died with a will.
• Petition for administration if the deceased died without a will.

Apply for Letters of Administration

You get letters of administration from the probate court. In New York, this court is called the Surrogate’s Court. You can have an attorney assist you with the process.

Gathering Assets and Paying Debts

To administer the estate, the executor or administrator must gather the deceased’s assets and pay the deceased’s debts.

Once the executor or administrator is appointed:

• The executor or administrator has six (6) months to file an inventory listing the decedent’s real and personal property.
• Creditors are given seven (7) months to file their claim with the estate.

The executor or administrator must diligently work to identify and gather all of the decedent’s assets that will make up the estate. If the deceased’s property is held by a third person, the executor or administrator can file discovery and turnover proceedings to recover such asset.

The executor or administrator also has to pay the deceased’s legitimate debts and taxes in a timely manner. This involves paying any outstanding debt obligations, funeral costs, medical bills, and the like. It may also involve filing the deceased’s final income tax returns.

Filing Estate Tax Returns

In addition to paying any outstanding taxes owed by the deceased, the executor or administrator may have to file estate tax returns and pay taxes if the value of the estate is above the exemption amount. As of January 2024:

• The federal estate tax threshold is $13.61 million.
• The New York estate tax threshold is $6.58 million.

Closing the Estate

Once assets have been gathered and all debts have been paid, the executor or administrator will prepare a final account showing all holdings, transactions, income and distributions made by the estate. This account is submitted to the beneficiaries or heirs for their approval.

Approved: the beneficiaries or heirs sign receipts and releases and they can then receive their distributions.

Disapproved: the executor or administrator will submit an accounting to the court for approval.

Properly administering an estate is a complex, legal process with many requirements to be aware of. Having a knowledgeable estate administration attorney can minimize any risk of making costly mistakes. Should you need legal help with estate administration in New York, 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].