An informal accounting is a written record — prepared by the fiduciary but not filed with the Surrogate's Court — showing every asset the estate collected, the income it earned, the expenses and debts paid, and what's left to distribute. It's typically organized into schedules: assets received, income earned, administration expenses and claims paid, and proposed distributions.
The accounting is delivered to each beneficiary along with a Receipt, Release, and Refunding Agreement. Once a beneficiary signs it, they're confirming they received the accounting and their share, releasing the fiduciary from further liability, and agreeing to return funds later if the estate turns out to owe an unexpected debt. When every beneficiary signs, the estate closes without ever going in front of a judge — faster and far less expensive than a judicial accounting.
It doesn't work for every estate. Beneficiaries who are minors, incapacitated, missing, or charities generally can't sign a valid release on their own, and if even one beneficiary refuses to sign or disputes the numbers, the fiduciary may have no choice but to file a formal accounting with the court.
The decision point most fiduciaries don't see coming isn't whether to account — it's what happens when one beneficiary won't cooperate. An informal accounting only closes the estate if everyone signs. One holdout, one incapacitated beneficiary, or one beneficiary who's a charity can force the whole estate into a judicial proceeding even if the other nine beneficiaries were satisfied.
For a fuller walkthrough of the schedules and steps involved, see our guide, How to Prepare an Informal Accounting for New York Beneficiaries.
Yes. A fiduciary has a duty to account to the beneficiaries, whether informally or, if requested or required, through the Surrogate's Court.
Yes — a properly executed Receipt, Release, and Refunding Agreement is a binding contract that releases the fiduciary from liability, as long as the accounting was accurate and fully disclosed.
Yes. If a beneficiary won't sign, or can't sign because they're a minor or incapacitated, the fiduciary generally has to petition for a judicial accounting instead.
It depends on how quickly beneficiaries respond, but informal accountings typically resolve in weeks rather than the months a judicial accounting can take.
Yes. A beneficiary is entitled to have an attorney review the proposed accounting and the release before signing anything.
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