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Withdrawing cash from the estate account – is that allowed?

withdrawing cash from estate account

Can an executor withdraw cash from an estate account? The answer is mostly “No”. Why not? Because the estate’s money does not belong to the executor – he is just managing it. What do we call it when a manager steals money he is managing? That’s right, it’s called embezzlement. Or more simply, stealing.

But how about if the executor is also a beneficiary? Don’t some of the money in the estate account also belong to him? For example, a lady left her inheritance to her four children, and one of the children is an executor. Can the executor-child withdraw cash from the estate and say that he is just withdrawing his own cash?

The answer to that is absolutely not. Even though the executor is one of the beneficiaries of the estate account, at the end of the day the account is not his. The estate belongs to all the beneficiaries. So if an executor withdraws cash from the estate account, he is considered by the law to be taking everyone’s money, not just his own.


What can happen if an executor neglects good advice and does withdraw cash from the estate account? Nothing good.

The court will force the executor to return the money.

The executor will be removed by the judge on the case.

The court might order the executor to pay for his own attorneys’ fees as opposed to using estate funds to pay for his attorney’s fees.

The judge may even order the executor to pay the beneficiaries’ attorneys’ fees.

What is scarier is that the executor can even be criminally prosecuted for stealing. That’s right, a criminal prosecution even if the executor is one of the beneficiaries of the estate account and even if the amount he took is less than his stake in the estate account. The Surrogate’s Court judge can refer the case to the District Attorney’s office, which has the power to prosecute the case in criminal court.

Although we talk about an executor, the same rules apply to an administrator and a trustee, as well as a preliminary executor, administrator d.b.n., administrator c.t.a.d.b.n., administrator c.t.a., ancillary executor, ancillary administrator, and ancillary administrator c.t.a. [1]

Above, we’ve referred to the executor as a manager. The legal term for someone managing money, including an executor is “fiduciary.” [2] New York’s Estates, Powers and Trusts Law governs the conduct of an estate fiduciary, as well as a trustee and an agent under a Power of Attorney.



The estate is the owner of the funds. By withdrawing cash from the estate account, the executor commits larceny.


To sum up, executors should keep estate funds where they belong-in the estate account. Whenever they receive any funds relating to the estate in any way, those funds should be deposited into the estate account and not withdrawn without either signed consent from each and every beneficiary or an order of the court authorizing the executor to disburse the funds.

Whether you are a beneficiary who thinks that the executor is withdrawing cash from the estate account, or if you are an executor and you feel that you are being falsely accused of withdrawing cash from the estate account, we at the Law Offices of Albert Goodwin are here for you. We cover the states of New York and Florida. You can call us at 1-800-600-8267 or send us an email at attorneyalbertgoodwin@gmail.com.

[1] NY EPTL § 11-1.1

[2] NY EPTL § 11-1.1

[3] NY EPTL § 11-1.6

[4] NY PEN § 155.05

[5] NY PEN § 155.05