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Rudolf J. Karvay
Estate & Trust Law
Garden City, New York
Estate & Trust Law
Garden City, New York
Probate ● Administration ● Estate Planning ● Taxation ● Litigation ● (516) 780-0281
GUIDE FOR NEW YORK ESTATE EXECUTORS AND ADMINISTRATORS
If you have been named as an Executor in a Will or are planning to become the Administrator of an estate without a Will, this guide will give you a good idea of what is expected of you. Note: your local court may use different terms for executor, administrator, probate and intestate administration.
What is an Estate Executor or Administrator?
The executor or administrator is the individual appointed to administer a decedent's estate. An executor or administrator is under a fiduciary duty to the estate. Which means that he or she is subject to the highest standard of care. A fiduciary is expected to be extremely loyal to the estate and its beneficiaries. He or she must not put his or her personal interests before the duty. While an executor must insure that the decedent's desires expressed in the will are carried out, the administrator must insure that the estate is settled according to the laws of intestacy. Essentially, an executor or administrator must protect the decedent's property until all debts and taxes have been paid, and ensure that what's left is transferred to the people who are entitled to it.
How Does the Executor or Administrator Get Appointed?
To get appointed you must file a proceeding in court. When the Will is admitted to probate, you will be appointed executor of the estate and proceed to administer the estate. If there is no Will, the you must file an Intestate Administration proceeding in court. The court will then appoint you administrator and you will have all of the powers of an executor.
What To Do After You are Appointed
If you have an attorney, your attorney will guide you through the steps of administering an estate. If you don't, you will need administer the estate on your own. A simplified summary of duties follows.
What is an Estate Executor or Administrator?
The executor or administrator is the individual appointed to administer a decedent's estate. An executor or administrator is under a fiduciary duty to the estate. Which means that he or she is subject to the highest standard of care. A fiduciary is expected to be extremely loyal to the estate and its beneficiaries. He or she must not put his or her personal interests before the duty. While an executor must insure that the decedent's desires expressed in the will are carried out, the administrator must insure that the estate is settled according to the laws of intestacy. Essentially, an executor or administrator must protect the decedent's property until all debts and taxes have been paid, and ensure that what's left is transferred to the people who are entitled to it.
How Does the Executor or Administrator Get Appointed?
To get appointed you must file a proceeding in court. When the Will is admitted to probate, you will be appointed executor of the estate and proceed to administer the estate. If there is no Will, the you must file an Intestate Administration proceeding in court. The court will then appoint you administrator and you will have all of the powers of an executor.
What To Do After You are Appointed
If you have an attorney, your attorney will guide you through the steps of administering an estate. If you don't, you will need administer the estate on your own. A simplified summary of duties follows.
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Inventory and safeguard the decedent's assets.
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Obtain appraisals if necessary.
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Open an estate checking account.
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Determine the validity of creditors’ claims against the estate.
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Pay valid debts and expenses.
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Keep meticulous financial records of your acts as fiduciary.
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File the decedent’s final income tax return and estate income tax returns, if needed.
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File federal and state estate tax returns, if needed.
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Distribute the balance of funds to the beneficiaries of the will or to the intestate distributees.
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Fiduciaries Beware -
If you are the fiduciary of an estate that is subject to federal and/or state estate taxes, you must file a return and pay the tax within 9 months of the date of death. File it late or screw it up and there can be penalties, for which you are personally liable. Do not confuse the Estate Tax Return with an Income Tax Return. They are separate and distinct taxes and some estates are subject to both. Click here for more information on Estate Taxes.
Is an Executor or Administrator Entitled to Compensation?
Generally, yes you may be entitled to compensation (commissions) for your service as the fiduciary of the estate. The rate of compensation is normally set by law and varies from state to state. You should be aware that compensation received by you as executor or administrator is taxable to you as income. On the other hand, funds received by you as a beneficiary are not considered taxable income. Before accepting any compensation, you should discuss the issue with your tax advisor. Finally, whether or not you are entitled to compensation may be dependant upon the terms of the Will. For more information about executor’s fees and to use our fee calculator -
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