How to verify an executor’s calculation of your share from a sale of estate real property
Summary: This article explains, under New York law, the steps a beneficiary should take to confirm an executor correctly calculated and paid your percentage share after your sibling’s house was sold. It explains what documents to request, how net sale proceeds are computed, how distribution is determined, what rights you have to an accounting, and practical next steps if you disagree. This is educational information only and is not legal advice.
Detailed answer
1. Who controls the sale and the funds?
In New York, the executor (if there is a will) or administrator (if there is no will) is the decedent’s personal representative and fiduciary. That person has the duty to collect estate assets (including proceeds from the sale of real property), pay valid debts and expenses, and distribute the remainder to the beneficiaries or heirs under the will or New York intestacy law (Estates, Powers & Trusts Law (EPTL)). See the EPTL overview: https://www.nysenate.gov/legislation/laws/EPTL. The Surrogate’s Court supervises many aspects of estate administration and may require filings such as inventories and accountings: https://www.nycourts.gov/courts/surrogate/ and the Surrogate’s Court Procedure Act: https://www.nysenate.gov/legislation/laws/SCPA.
2. Documents to request from the executor
Ask the executor (in writing, and keep a copy) for the following documents. These allow you to trace how the sale price became your distribution:
- Copy of the will (if any) and Letters Testamentary or Letters of Administration showing the executor’s authority.
- Closing statement for the house sale (HUD-1 or Closing Disclosure) showing gross sale price, real estate commission, title fees, recording fees, escrow adjustments, prorated property taxes, and disbursements.
- Mortgage payoff statement(s), recorded lien releases, and any judgments or recorded liens paid at closing.
- Receipts/invoices for closing costs, real estate commissions, repairs made before sale (if paid by estate), and transfer taxes.
- Estate accounting or interim accounting showing all estate receipts and disbursements (see next section on accountings).
- List of creditors paid and documentation of any creditor claims paid.
3. How to compute the net sale proceeds (the starting point)
Basic formula:
Net sale proceeds = Gross sale price – (selling expenses + mortgage payoff and other liens + prorated taxes and utilities + closing charges).
Typical line items that reduce the gross sale price include real estate commission, title/closing fees, recording and transfer taxes, any mortgages or liens paid off at closing, escrow holdbacks, and prorated property taxes. The executor should provide the closing statement that lists these items.
4. From net sale proceeds to distributable estate
Net sale proceeds become part of the estate assets. Before distribution to beneficiaries, the executor must pay:
- Valid creditor claims and funeral expenses.
- Taxes owed by the decedent or the estate (federal and state income taxes, estate taxes if applicable).
- Administration costs such as court costs, executor’s commissions (if allowed or waived), attorney fees (reasonable and, if court-approved, allowed), appraisal fees, and accounting fees.
After paying legitimate debts and administrative expenses, the remaining balance is the distributable estate. Your percentage share applies to that distributable amount (or as set in the will).
5. How to confirm your percentage share
- Confirm whether the will specifies a fixed percentage, a fixed gift, or names you as a residuary beneficiary. If there is no will, New York intestacy rules in EPTL determine heirs and shares (see EPTL: https://www.nysenate.gov/legislation/laws/EPTL).
- Verify the executor’s math step-by-step: start from the gross sale price shown on the closing statement, subtract the listed closing items and lien payoffs to reach net sale proceeds; then subtract the approved debts and administration expenses (with receipts) to reach distributable estate; finally apply your percentage.
- Ask for a formal accounting. In New York, beneficiaries and distributees have the right to request and obtain an accounting of estate receipts and disbursements from the personal representative; the Surrogate’s Court also supervises accountings (see Surrogate’s Court Procedure Act: https://www.nysenate.gov/legislation/laws/SCPA and Surrogate’s Court resources: https://www.nycourts.gov/courts/surrogate/).
6. Example (hypothetical numbers)
Hypothetical sale price: $300,000
Mortgage payoff: $100,000
Real estate commission (6%): $18,000
Closing costs / title fees: $3,000
Prorated property taxes: $1,200
Net sale proceeds = 300,000 − (100,000 + 18,000 + 3,000 + 1,200) = $177,800.
Assume estate debts and administration expenses (funeral, attorney fees, small creditor claims) total $30,000.
Distributable estate = 177,800 − 30,000 = $147,800.
If the will gives you 50% of the residuary estate, your share = 0.50 × 147,800 = $73,900.
7. What if you disagree with the calculation?
- Request supporting documents in writing. Be specific about what line item you question.
- If the executor refuses or the explanation does not resolve the issue, you may challenge the accounting by filing objections in Surrogate’s Court. The court can schedule a hearing, review receipts, and, if appropriate, surcharge the executor for errors or breaches of fiduciary duty.
- You may also hire a forensic accountant or an attorney experienced in Surrogate’s Court matters to audit the accounting and, if needed, represent you in court.
Practical note: Executors owe beneficiaries a fiduciary duty of good faith and must keep clear records. Many disputes are resolved by exchanging documentation and having an attorney or accountant review the math before filing objections in court.
Helpful Hints
- Ask for everything in writing and keep copies of your requests and any documents you receive.
- Start by reviewing the closing statement (HUD‑1 or Closing Disclosure). That document shows how the sale price was split at closing.
- Request the executor’s interim accounting if one has not already been filed. Beneficiaries generally have the right to see accountings and supporting receipts (see Surrogate’s Court resources: https://www.nycourts.gov/courts/surrogate/).
- Get basic math help from a trusted accountant if numbers look off; they can confirm whether the net proceeds and distributions were calculated correctly.
- If you suspect improper handling or misappropriation of funds, consult a New York attorney experienced in probate and trust litigation promptly. They can advise on deadlines and the complaint/objection process.
- Consider small claims or negotiatory approaches for minor disputes, but for disputes over estate accountings you will likely need Surrogate’s Court procedures.
- Remember taxes and creditor claims reduce the distributable amount. Ask the executor for tax returns or tax bills showing what was paid by the estate.
- Be mindful that executors may be entitled to commissions or to have attorney fees paid by the estate if allowed; ask for court approval or documentation of any such fees.
Where to learn more / official resources:
- Estates, Powers & Trusts Law (EPTL) overview: https://www.nysenate.gov/legislation/laws/EPTL
- Surrogate’s Court Procedure Act (SCPA) and Surrogate’s Court information: https://www.nysenate.gov/legislation/laws/SCPA and https://www.nycourts.gov/courts/surrogate/
Disclaimer: This article provides general information about New York estate administration and is not legal advice. Laws change and every estate is fact-specific. For advice tailored to your situation, consult a licensed New York attorney experienced in probate and estate litigation.