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If the estate was closed I believe the court would have to approve the payment. I can't imagine the court approving a $10,000 property tax adjustment 2 years after the estate was closed and the property sold.

As always in this business, facts & circumstances. Why did you fire him? Is that still the case? Why isn't the new preparer doing the work? If you do this, and he decides he likes you better, is he welcome back for good (if not, tell him up front)? Up to you, but definitely get paid - and make sure the check clears - before you do anything. And don't let him pay via PayPal, as he can go back to them after you're done and claim he didn't get what he paid for. They almost always decide for the payer, and you're out the money plus a Pp fee. Happened to a colleague of mine; I took the Pp link down from my site the next day.

Beware of new rules in California! Client of mine was executrix for a relative who lived in CA. Got the estate settled, sold the property, had all the payoff amounts from mortgage, final tax from town/county, estate closure letter. Distributed proceeds to heirs. Almost two years later, county came back saying they had adjusted the RE tax, here's a bill for well over $10k, pay up. Attorney in CA said she'd never seen such a thing in 30+ years, but researched it and it was legit. Very luckily for the executrix, most of the heirs gave her money towards that bill, but she was still out of her pocket for about a third of it. Doesn't specifically deal with your sale-of-home issue, but the executor should at least be warned of this possibility.

Not a capital gain.