How Do You Obtain a Compulsory Accounting in New York Surrogate’s Court?

Seasoned New York Compulsory Accounting Lawyer

Estate fiduciaries, whether executors or administrators or trustees, must provide beneficiaries with an accounting of transactions they conducted in their role as fiduciaries. Accountings are made up of multiple itemized, detailed descriptions of financial activities that were undertaken in the course of serving as executor, administrator, or trustee. When a fiduciary fails to provide an accounting to beneficiaries, it may be appropriate to file a compulsory accounting proceeding in the New York Surrogate’s Court. The purpose of this filing is to ask that the Court order the fiduciary to file an accounting. Call seasoned New York compulsory accounting lawyer Jules Haas to determine your legal options.

How Do You Obtain a Compulsory Accounting in New York Surrogate’s Court?

As a beneficiary of a will or estate, you are entitled to an accounting of all transactions related to the will or estate. When a fiduciary does not provide you with information, you can file a petition for a compulsory accounting with the New York Surrogate’s Court to ask the Court to direct the fiduciary to file an accounting. 

The court can order a compulsory accounting on the petition of an interested person as well as:

• a creditor;
• a public administrator;
• a person on behalf of an infant or child born after the making of the will when he or she is interested in the estate;
• the fiduciary of a decedent who was interested;
• a surety on the bond of the fiduciary required to account;
• a successor fiduciary when letters of the predecessor or a co-fiduciary has been revoked or where the predecessor or co-fiduciary has been removed;
• a co-fiduciary who has filed his or her account and petition for its judicial settlement, or the attorney-general of the state where any part of the estate escheats to the state.

Surrogate Court’s Procedure Act sections 2205 and 2206 cover the manner by which you can seek a compulsory accounting. It is wise to seek out and retain a knowledgeable attorney to represent you and file a petition on your behalf. Generally, it’s important to attempt to obtain the accounting informally first, rather than litigate immediately, and a seasoned attorney can help you do that by sending a demand letter.

If the executor, administrator or trustee doesn’t respond to the demand or refuses to provide an accounting, a petition should be filed in Surrogate’s Court. The petition must indicate your relationship to the estate to demonstrate that you have standing to obtain a compulsory accounting and also show that the compulsory accounting is in the best interests of the estate. The petition can request different kinds of relief, including suspension or removal of the fiduciary and appointment of an eligible person to serve as fiduciary in place of the one whose letters are removed.

The facts of the particular case will determine whether it’s in the best interest of the estate to order a compulsory accounting.

New York Attorney to Seek Remedies

After the petition is processed, the court usually directs the fiduciary to show cause at a hearing before the court as to why the court shouldn’t order the fiduciary to provide the accounting. The parties both speak at the hearing. They can also speak informally to see whether settlement is possible; this avoids the cost and time spent on a court proceeding.

Upon a showing of the best interests of the estate in a petition, the court can:

• order the fiduciary to file an intermediate or final account;
• suspend a fiduciary who fails to file an account that’s been ordered, according to the court’s directive;
• appoint an eligible person to succeed a fiduciary whose letters have been suspended;
• set a trial date for a hearing on the removal of a fiduciary whose letters have been suspended;
• set a trial date to take and state an account on behalf of a fiduciary who fails to file the accounting or procure its settlement;
• and grant other relief.

When the court does order an estate fiduciary to provide the accounting, the court will usually provide a timeline within which to act, and if the estate’s fiduciary fails to meet the deadline, the petitioner can ask the court to hold the fiduciary in contempt of court.

Consult a Seasoned Estate Litigator

Mr. Haas is a seasoned New York estate lawyer who represents beneficiaries, executors, administrators, and other interested parties. Dedicated to providing clients with personal and attentive service, he handles all probate, estate administration and Surrogate’s court cases as well as guardianship cases. Call Mr. Haas via our online form or at (212) 355-2575 for a free consultation.