A big question we get is how to open an estate for a foreign decedent who held assets in New York. This can be answered with a real life case study:
We recently had case where a person was trying to retrieve money held in a bank in New York that belonged to a Venezuelan citizen. It had been over three years and she was getting nowhere. The bank and everyone she spoke to, was giving her bad advice – leading her on a long goose chase. The bank asked for affidavits, and all the lawyers she called said it was not possible because the decedent was from Venezuela.
After many years of handling estates for foreign nationals, I can say without a doubt that there is no way around opening an estate in New York for assets held in New York. To claim assets situated in NY, an estate must be opened and letters of administration issued.
The heirs or beneficiaries can sign all the affidavits in the world and even produce documents from the home country showing that they are entitled to the money. However, New York institutions will not release funds without having letters of administration on hand.
A bank or any institution that is holding a deceased’s assets – stocks, bonds, cash, life insurance, unclaimed funds – will need to be shown letters of administration. These letters are issued only through opening an estate in New York. If the account was opened in New York by the deceased during his life and then he died, the only way to get access is through Surrogate’s Court. Commencing an estate in Surrogate’s Court is not an easy task for New York domiciliaries, and it is even more difficult for foreigners.
Opening an estate is not enough to gain control and access to decedent’s assets. The estate must be filed correctly; all required paperwork must be properly executed and submitted; and the Court must be satisfied that the parties are entitled to the estate. When the judge overseeing the case is satisfied that all documents are proper and complete, only then will the New York Surrogate’s Court grant letters of administration.
What Are Letters of administration?
Letters of administration is a certified court document that officially names a person as the personal representative over the estate, also known as the “administrator”. The administrator over a foreigner’s NY estate can claim the assets, pay the heirs or beneficiaries, file tax returns, and close out the affairs.
The administrator is the only person that can take control of estate assets. As administrator, she can claim a bank account, sell real estate, evict tenants, sell stock or bonds, claim a crypto asset, and pay expenses from estate assets. No one else has this power. So, when a bank tells you to send them affidavits – they are giving you bad advice. The only times when an affidavit may suffice is when there is a beneficiary or joint owner named in the account.
How do you become an Administrator over a Foreigner’s Estate?
Many times, the beneficiaries cannot become an administrator over an estate because they are foreign citizens. New York Surrogate’s Court requires you to be a USA citizen or a permanent resident (greencard holder) in order to be appointed as administrator or executor. This is when the beneficiaries have to ask someone they know in the US or a NY estate lawyer to petition the court instead. In some situations, a foreigner can serve together with a US citizen, but the foreigner cannot serve alone.
For the case described above with the Venezuela nationals, the person died and left a bank account in Chase Bank with a substantial amount of money. The daughter could not access this account for over 3 years. Thankfully, her friend found our estate law firm and we assisted right away. The daughter was not a US citizen so she could serve as administrator, but her friend was so we filed to have her appointed.
Serving over a foreigner’s estate is a big job that many people will not voluntarily sign up for. Many times, estate taxes will be due and an administrator has personal liability if taxes are not filed properly or are not paid in full. This is why foreign beneficiaries hire a NY probate law firm to handle all affairs as it is more efficient administration.
Conclusion
If you are a foreign beneficiary or a foreigner national died with assets in New York State, contact us. The decedent may have a will in his home country or he may have died without a will. Whatever the case is, we love fixing complex estate issues.
Mishiyeva Law, PLLC.
85 Broad Street 18th Floor
New York, NY 10004
United States
(646) 233-0826
