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Estate Litigation FAQ
Frequently Asked Questions About Estate Litigation in New York
Estate litigation can be heated and acrimonious. It usually requires sensitive and knowledgeable legal representation. Here are some of the most frequently asked questions that lawyers are asked about estate litigation in New York.
- What is Estate Litigation?
- Who Can Pursue Estate Litigation?
- What are Examples of Estate Litigation?
- When Can an Executor or Trustee Be Removed?
- How Do You Prove an Executor, Administrator, or Trustee’s Breach of Fiduciary Duty?
- What Rights Do Creditors Have When Filing a Claim Against an Estate in New York?
- What Are Kinship Hearings in New York?
- When are Kinship Proceedings Necessary?
What is Estate Litigation?
Estate litigation is any type of legal dispute that involves a decedent’s property and how it is distributed.
Who Can Pursue Estate Litigation?
Estate litigation can be pursued by anyone with legal standing, which means it can be pursued by anyone with a pecuniary stake in the outcome of the lawsuit.
What are Examples of Estate Litigation?
Estate litigation can include a wide range of lawsuits, including will contests brought; breach of fiduciary cases against an executor or trustee believed to be mismanaging an estate; creditor claims against the estate; disputes among heirs about children or spouses left out of the will; questions about the ownership of business assets; ambiguous trust language; accounting proceedings; and kinship disputes.
When Can an Executor or Trustee Be Removed?
An executor or trustee can be removed for breach of fiduciary duty, mismanagement of estate or trust assets, failure to provide an accounting, or incapacity. The court will determine whether to remove an executor, administrator, or trustee based on the beneficiaries’ best interest. The party seeking to remove the executor, administrator, or trustee bears the burden of proving that removal is needed. It is important to hire an experienced attorney to represent you if you are a beneficiary who seeks to remove an executor or trustee or if beneficiaries seek to remove you as an executor or trustee. It may also be important to retain an attorney from the outset of serving as executor, administrator, or trustee to avoid mismanaging the estate.
How Do You Prove an Executor, Administrator, or Trustee’s Breach of Fiduciary Duty?
To establish an executor, administrator, or trustee’s breach of fiduciary duty, a plaintiff will need to prove: (1) that a fiduciary relationship existed, (2) the defendant committed misconduct, and (3) the defendant’s misconduct caused damages. When there is a fiduciary relationship, the agent is bound to use the utmost good faith and demonstrate undivided loyalty toward the principal. Misconduct can include failing to properly invest property, failing to maintain property, failing to communicate with beneficiaries, self-dealing, and acting with conflicts of interest.
What Rights Do Creditors Have When Filing a Claim Against an Estate in New York?
In New York, creditors have a maximum of seven months from the issuance of Letters Testamentary or Letters of Administration, which are court-issued documents that authorize the executor named in a deceased person’s will or appointed administrator to manage the estate, to file claims against an estate. Creditors must comply with the requirements of the Surrogate’s Court Procedure Act sections 1802 and 1803. Under section 1802, if a claim is not presented within that time period, the administrator won’t be liable for any assets or money paid in good faith to satisfy lawful claims or distributions made prior to presentation of the creditor’s claim. The fiduciary of the estate is obliged to ascertain and pay debts but is not obliged to find all of the creditors who have claims against the estate. Rather the creditor is expected to behave diligently to follow up on collecting debts and determining whether someone who owes a debt has died. However, an executor or administrator is obligated to satisfy or determine the validity of claims for which there is reasonable notice.
What Are Kinship Hearings in New York?
In New York, kinship hearings are legal proceedings that are held in Surrogate’s Court in connection with estate administration or litigation to determine the rightful heirs to an estate. When someone dies without a will, they have died “intestate,” which means that state law will determine to whom the estate is distributed. Under these rules, a decedent’s assets are distributed according to rules of intestacy that dictate that a surviving spouse and child are first in line to inherit, then parents, siblings, and other more distant relatives. When the decedent only has distant relatives, the kinship hearing is used to decide who should rightfully inherit. It is managed like a trial with the burden of proof falling on heirs to establish their rightful position within the decedent’s biological family.
When are Kinship Proceedings Necessary?
Kinship proceedings are necessary under several different circumstances, such as when someone dies without a valid will and there are no known close relatives, when the closest surviving relatives are distant and when heirs dispute the kinship of other claimants such as non-marital children. Kinship disputes can arise in probate and administration cases in the Surrogate’s Court.
Consult an Experienced New York Estate Litigation Attorney
Whether you are initiating or defending against estate litigation, it is imperative to seek knowledgeable legal counsel. Call attorney Jules M. Haas now for a free confidential review of your case at (212) 355-2575 or contact him through his online form. He has more than 40 years of experience, and he offers reasonable and flexible fee arrangements.