An executor receives Letters Testamentary from the Surrogate’s Court and now holds the responsibility for a person’s entire financial life. The decedent—perhaps a parent or spouse—was a private person. They left a will, but no ledger of accounts, no map to their assets. The legal duty is clear, but the starting point is not. Where do you begin?
In my practice, I have seen this scenario play out many times. A well-meaning executor, overwhelmed by grief and a sudden fiduciary duty, must find every last asset. This process is formally called “marshaling the assets,” and it is the cornerstone of any estate administration. This is not a treasure hunt. It is a deliberate, methodical accounting that protects the executor from liability and ensures the decedent’s final wishes are honored.
The Fiduciary’s First Responsibility
When you are appointed as an executor, administrator, or trustee, you become a fiduciary. This is one of the highest standards of care under New York law. You must act with prudence and undivided loyalty to the beneficiaries of the estate. The first and most critical expression of that duty is to create a complete inventory of the decedent’s assets.
You cannot manage, protect, or distribute what you cannot find. An undiscovered bank account accrues no interest for the heirs. An unknown parcel of land can be lost to a tax sale. A forgotten investment account cannot be liquidated to pay the estate’s final expenses. Failing to conduct a diligent search can expose an executor to personal liability if beneficiaries later claim that assets were missed due to negligence.
The goal is to assemble a full accounting of the estate’s assets and liabilities as of the date of death. This includes everything from real estate and bank accounts to stocks, bonds, retirement funds, life insurance policies, and valuable personal property. Stewardship.
A Methodical Search, Not a Mad Dash
The search for assets must be systematic. We advise executors to start with the most obvious sources of information and work their way outward.
The first place to look is the decedent’s home—specifically their mail and personal records. Tax documents from the last few years are an executor’s best resource. A 1099-INT reveals a bank account. A 1099-DIV points to a brokerage account. A 1099-R can identify an IRA or pension. Bank statements, checkbooks, and life insurance policy documents are also invaluable.
Once the paper trail is exhausted, the search expands. We often help executors send formal inquiries, under the authority of their Letters Testamentary, to financial institutions where the decedent may have had accounts. We also check real property records in any county where the person may have lived or owned property.
Sometimes, an executor has reason to believe an asset exists but is being withheld by a third party. In these situations, we have a powerful tool in Surrogate’s Court. Under New York’s Surrogate’s Court Procedure Act (SCPA) §2103, a fiduciary can initiate a discovery proceeding. This is a formal legal action to compel a person or institution believed to be holding estate property to appear in court and provide information about it. It is a direct way to get answers when cooperation is not forthcoming.
Unclaimed Funds and Other Hidden Assets
People often lose track of their own assets. An old utility deposit, a final paycheck from a long-ago job, or stock from a demutualized insurance company can all end up in the New York State Comptroller’s Office of Unclaimed Funds. A diligent search of this database is a required step for any executor. Millions of dollars are returned to rightful owners and their estates every year.
Other issues can arise. A safe deposit box may exist, but the key is missing. We can petition the court for an order to have the box drilled open in the presence of a bank representative. Assets might be located outside of New York, which may require a secondary—or “ancillary”—probate proceeding in that state’s court system. The key is to be thorough and to document every step of the search.
As an executor, you are not expected to know how to do all of this alone. The role is to be the responsible party, the steward of the estate. A significant part of that responsibility is knowing when to engage professionals—attorneys, accountants, or appraisers—to assist in fulfilling your duties correctly.
If you have been named an executor and face the task of marshaling a loved one’s assets, your first step is to organize the information you already have. Schedule a consultation with our firm to review these documents and establish a methodical plan for your asset search.
