By Adam J. Gottlieb
Settling an accounting for an
Estate or Trust can be accomplished in three ways:
1. Informal accounting using receipts and releases;2. Obtaining a decree upon filing receipts and releases
with the court; and3. Judicial settlement of the account, which can be
initiated as follows:
Court may move for an accounting;b. An
appropriate person may seek a compulsory accounting; orc. The
fiduciary may seek to voluntarily settle his account judicially.
In a compulsory accounting, a
question arises as to who may seek the compulsory accounting. A "person interested" under SCPA 2205(2)(b) (and as defined in SCPA 103(39)) can petition the court for compulsory
accounting. Among other persons, a
residuary beneficiary of an estate is a person interested who can seek a
compulsory account. A creditor, a public
administrator or county treasurer and several other parties may also seek a
While the party with standing may
seek a compulsory account, certain parties to the account must be advised of
the accounting proceeding, per SCPA 2210. Often,
the persons may be the same, but there are circumstances in which they are
not. A notable difference exists when a
residuary beneficiary of an estate petitions for a compulsory accounting.
While all residuary beneficiaries
may petition for a compulsory accounting, some of those residuary beneficiaries
may have agreed that the accounting should be settled informally. A beneficiary who has so consented is longer
a necessary party in the petition for accounting.
This entry shows just one example
of differences between those who may petition under SCPA 2205 and necessary
parties under SCPA 2210. There are several other differences to be found in
those two statutes.
. . . .
Explore the LEXIS.com Estates, Gifts & Trusts and Elder Law resources
Discover the features and benefits of LexisNexis® Tax Center
For more information about LexisNexis products and
solutions connect with us through our corporate