Two ways to close an estate
A New York executor or administrator can account in two ways.
- Informally, by giving the beneficiaries a written account and collecting signed receipts and releases. If every person who would have to be served in a judicial accounting signs, the fiduciary can ask the Surrogate's Court for a decree releasing and discharging them without a full accounting proceeding (SCPA §2203). The petition must show that all taxes have been paid or none were due and that the fiduciary has fully accounted in writing to everyone who would be served. The court publishes a checklist for informal accountings.
- Judicially, by filing the account with a petition for judicial settlement and serving citation on the interested persons. The court then issues a decree judicially settling the account.
When an account can be required
A fiduciary may petition voluntarily to have an account judicially settled. For an executor or administrator, that's available once the time for presenting claims under a published notice has expired or seven months have passed since letters were first issued, among other cases (SCPA §2208). The court can also compel an intermediate or final account at any time on its own initiative or on the petition of a creditor or interested person, and can suspend a fiduciary who doesn't comply (SCPA §2205). SCPA §2210 lists who must be served.
The official account forms
The Unified Court System publishes official accounting forms. JA-7 is the account for an executor or administrator (form packet); JA-4 is the trustee's account (form packet). The packets also include a petition (JA-1), a receipt and release (JA-2), a waiver of citation and consent (JA-3) and a form of decree. The summary of a JA-7 account reads:
| Charges | Credits |
|---|---|
| Schedule A: principal received | Schedule B: realized decreases in principal |
| Schedule A-1: realized increases in principal | Schedule C: funeral and administration expenses and taxes |
| Schedule A-2: income collected | Schedule D: creditors' claims actually paid |
| Schedule E: distributions of principal |
Total charges less total credits equals the balance on hand shown by Schedule G, split between cash and other property and subject to estimated commissions.
What each supporting schedule shows
- C-1: unpaid administration expenses, with the basis for each claim.
- D: creditors' claims, divided into claims paid, allowed but unpaid, rejected (with dates and reasons), contingent, and the fiduciary's personal claims needing court approval.
- F: new investments, exchanges and stock distributions, with their allocation between principal and income.
- G: principal remaining on hand, with date and cost of acquisition and unrealized increases and decreases.
- H: interested parties and the proposed distribution, plus the result of searching the court's records for powers of attorney and assignments.
- I: computation of commissions.
- J: other pertinent facts and a cash reconciliation that can be checked against the bank statements.
- K: estate taxes paid and how they're allocated among beneficiaries.
The account is sworn: the affidavit of the accounting party confirms that the schedules are complete and the commissions were computed under the statute.
Commissions
Executors' and administrators' commissions on property received and paid out are set by SCPA §2307: 5% of the first $100,000, 4% of the next $200,000, 3% of the next $700,000, 2.5% of the next $4 million and 2% above $5 million. Schedule I shows the computation. The New York format page has worked examples.
Principal and income
An estate that passes outright needs little principal-and-income work, but a JA-7 account still separates income collected (Schedule A-2) from principal. Allocation follows New York's principal and income act, EPTL Article 11-A. Our principal and income guide explains the default rules.
Frequently asked questions
Do I have to use the JA-7 form itself?
JA-7 is the official form. Summafolio's output is formatted to the structure of JA-7, not filled in on the form itself; ask your attorney or the county Surrogate's Court what they'll accept.
Is a receipt and release the same as a judicial settlement?
No. A receipt and release is signed by one person. A judicial settlement goes through citation to every interested person listed in SCPA §2210 and ends in a court decree.
Does a trustee use the same form?
No. Trustees use JA-4, which keeps separate principal and income schedules.
Summafolio for New York estates
Summafolio builds the JA-7 schedules from the estate's statements, computes SCPA §2307 commissions and produces the Schedule J cash reconciliation, tied out to the cent. See the sample New York estate accounting, download the estate accounting template or check pricing.