Final accounting question

[prophetic58]

In regards to a probate will, how many final accountings are there in the estate process? The final accounting in my case, was reviewed and approved in the conservator case on july 16, 2009. The decree states that final accounting was reviewed, and approved. Then it says this file will close in 45 days. Now the will has been admitted to probate. The final accounting as of july 16, was that for conservator fees, administration fees, or the such? Then there is an estate accounting as far as bills against the estate etc.? Need an understanding.

 

[NY_Shark]

If preliminary letters were issued before the will was probated then it would make sense to have two accountings. Was this the case?

 

[prophetic58]

I am not sure, but only know that probate sent me a letter (as I am one of the beneficiaries), the conservator is the other beneficiary and executor of my relatives estate. He was a disabled vet. The first letter was dated July 16, stating that the final accounting (I believe in the conservator file) was approved, and was released to be distributed to whoever creditors, or I guess all of the consevator fees. And then it stated the file would be closed in 45 days. In the interim, they were searching for potential heirs (?), but came up with none. On September 10 the will was admitted into probate. The executor says he is working on the estate, (whatever that means). That is my question. Is there now another accounting for the estate, as well as the one that took place in July for the consevator? Need understanding.

 

[NY_Shark]

A quick overview of the process:

Once an executor is named, the will is given into the court. Usually preliminary letters are issued. What this means is that although the will has not yet been admitted to probate, the executor can start gathering the decedent's property to be distributed later. The executor uses the preliminary letters to close all accounts, and potentially sell property that is not specifically devised in the will. At this point a list of distributees is constructed, and each receives a waiver. They either waive their right to challenge the will, or they receive a citation, and are given the opportunity to challenge the will in court. Once all waivers are received, if applicable, the will is admitted to probate, and the executor can distribute the property.

From the time the estate is opened, all creditors have a certain amount of time to demand payment from the estate. Not sure about Connecticut, but in NY this period is seven months. That means that even if the will is entered to probate, the executor still usually waits this period of time before distributing the property because if it is not paid by the estate, the executor can be held personally responsible for the debt.

As far as "working on the estate," the executor must do the following with the money from the estate:
1. pay funeral costs
2. pay lawyer fees
3. pay creditors in the allotted period of time
4. calculate decedent's income tax for the year and put this aside
5. pay estate tax (though most estates are exempt)
6. calculate executor's commission

Aside from funeral costs, these things are typically done AFTER the will has been entered into probate, which results in a lag period between the time the will was probated and the distribution of property.

I hope that answers your question.

 

[prophetic58]

Thanks a million. This definitely puts it into prospective.