An executor’s job is to gather what the person owned, pay what they owed, and pass on the rest the way they wanted.
The legal side runs through the Surrogate’s Court, and an estate attorney should guide it. The financial side runs alongside: accounts to secure, values to document, taxes to file and decisions about what to sell. It’s where most avoidable mistakes happen.
The first weeks
- Order a good number of certified death certificates. Banks, custodians and agencies each want one.
- Find the will and any trusts, and meet the estate attorney.
- Secure the home, vehicles and valuables. Keep insurance in force.
- Notify Social Security. Payments received for the month of death may have to be returned.
- Don’t close accounts or move money yet. Until the court appoints you, you generally don’t have authority to.
The checklist
The executor’s financial checklist
0 of 13 done
Get authority With the attorney
Take inventory The first two to three months
Taxes Start early
Distribute After debts and taxes are settled
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What passes under the will, and what doesn’t
| Asset | How it passes | Executor’s role |
|---|---|---|
| Accounts in the person’s sole name | Under the will, through the estate | Collect, manage and distribute |
| IRAs, 401(k)s, life insurance, annuities | Directly to the named beneficiaries | Usually none, unless the estate is the beneficiary |
| Joint accounts with survivorship | Directly to the surviving owner | Usually none |
| Transfer-on-death accounts | Directly to the named person | Usually none |
| Assets in a living trust | By the trust’s terms, through the trustee | The trustee’s job, which may also be you |
This matters because a will that says “split everything equally” can be overridden by a beneficiary form naming one child. Executors are often surprised by how much of an estate never passes through the will at all.
The New York estate tax numbers
| Amount | |
|---|---|
| New York basic exclusion | $7,350,000 |
| New York cliff (105%) | $7,717,500. Above it, the whole estate is taxable, not just the excess. |
| Federal exclusion | $15,000,000 per person |
New York counts more than many people expect, including life insurance the person owned and certain gifts made within three years of death. An estate near the line needs careful valuation. Small estates, with $50,000 or less in personal property, may qualify for a simpler process called voluntary administration.
- Tax as a share of the estate
- 9.6%
- Over the $7.35M exclusion by
- $450,000
- Federal estate tax, rough
- $0
Don’t sell too soon
Most inherited assets get a fresh tax basis. Stocks, funds and real estate generally take a basis equal to their value at death.
Selling soon after may create little or no gain, which helps. Selling in a rush, at a low point, or before you know what cash the estate needs doesn’t.
- Work out the estate’s cash needs first: debts, taxes, legal fees, the house until it sells.
- Ask heirs whether they’d rather receive investments in kind than cash.
- Don’t touch inherited IRAs until the beneficiary rules are clear. A mistake there can be permanent.
How Morrowgate helps executors. Greg works alongside the estate attorney and CPA: building the inventory and date-of-death values, planning the estate’s cash needs, and helping heirs with inherited IRAs and investments. Legal and tax work stays with them. Estate and heir accounts are held at Fidelity, with Schwab available.
Questions executors ask
How long does it take to settle an estate in New York?
Often a year or more, depending on the court, the assets, any estate tax return and whether anyone contests the will.
Does the executor get paid?
New York law sets executor commissions on a sliding scale, unless the will says otherwise. Many family executors waive them. Ask the attorney.
Do I need an attorney to be an executor in New York?
It isn’t strictly required, but most executors use one. The Surrogate’s Court process has deadlines and forms that are easy to get wrong.
Can I pay estate bills from my own money?
Avoid it. Use the estate account. If you must, keep records so you can be reimbursed.
Where this guidance stops
This article is general education on the financial side of settling a New York estate: how the rules and the options generally work.
It is not tax, legal or investment advice, and nothing here is a recommendation for your situation. Rules change and outcomes turn on the facts, which is why a CPA and an attorney look at a family’s own numbers before anything is done.
Sources
- New York State Unified Court System: Surrogate’s Court, probate and administration
- New York State Department of Taxation and Finance: Estate tax
- IRS: File an estate tax income tax return (Form 1041)
- IRS: Deceased taxpayers