Definition of JUDICIAL SETTLEMENT:
(noun) / a proceeding whereby the account of a fiduciary is settled and adjudicated by decree of the court (SCPA § 103 [29])
Plain English translation: A fiduciary, such as an executor or administrator, is accountable to the beneficiaries, or those entitled to benefit from the assets. One way of having the fiduciary’s account approved is through a court proceeding where the account is filed with the Surrogate’s Court for judicial approval or judicial settlement. To indicate that the account is acceptable, and to release the fiduciary from liability, the court will issue a decree judicially settling the account.
Example: Jacy, as executor of her mother’s estate, filed her final accounting with the court. The court issued a decree approving her accounting. The accounting proceeding for Jacy’s mother’s estate has been judicially settled.
