The discharge of an executor or trustee is the ultimate end-game of most, if not all, estate and trust administrations. Affording that kind of comfort level to the fiduciary can be accomplished in one of two ways, distinguished by whether the process is judicial or non- judicial. Although the judicial discharge has been the generally accepted route, given the time and expense incurred through this course many fiduciaries opt for an informal discharge by means of a receipt and release.

Nevertheless, the fiduciary who thinks a receipt and release is the answer to all future claims for an accounting and liability may have a surprise in store. Though instinctively a release is thought to provide an absolute bar to litigation, the factual circumstances surrounding the procurement of the release, as well as its terms, often drive the result.

Recent opinions rendered by the Surrogate’s Court and the Appellate Division have explored the issue of receipts and releases and have provided insight into just how far the instruments will go to “save the day.” The lessons to be learned by the fiduciary and the beneficiary from these opinions are worthy of note.

Originally published in the New York State Bar Association Journal, June 2018, Vol. 90, No. 5.