Seeking Relief Against a Fiduciary in Surrogate’s Court: What You Need to Know

Fiduciary DutyThe Surrogate’s Court plays a crucial role in handling matters relating to the administration of estates and trusts, including the supervision of fiduciaries. A fiduciary is a person or entity entrusted with the responsibility of managing someone else’s property or affairs, such as an executor, trustee, or guardian. In some cases, a fiduciary may act negligently, dishonestly, or incompetently, causing harm to the estate, trust, or beneficiaries.

In these instances, seeking relief against the fiduciary in Surrogate’s Court becomes essential. This article outlines the process of obtaining relief, the various forms of relief available, and the factors the court will consider when deciding on the matter.

Initiating Proceedings

To initiate legal action against a fiduciary, an interested party (e.g., a beneficiary, creditor, or co-fiduciary) must commence a proceeding in the Surrogate’s Court. This typically begins with the filing of a petition or complaint that outlines the alleged misconduct, the harm caused, and the relief sought. A citation or summons will then be issued, notifying the fiduciary of the claims, and requiring their appearance in court to respond to the allegations.

Grounds for relief against a fiduciary in surrogate’s court may include:

  1. Breach of fiduciary duty: A fiduciary has a legal obligation to act in the best interest of the estate, trust, or incapacitated person they represent. If they fail to do so, they can be held liable for breaching their fiduciary duty. Examples of breaches include mismanagement of assets, self-dealing, or failure to properly account for transactions.
  2. Negligence: If a fiduciary fails to exercise the care and diligence expected of a reasonable person in similar circumstances, they can be held liable for negligence. This may include the failure to properly invest assets, pay taxes or debts, or distribute assets according to the terms of a will or trust.
  3. Fraud: A fiduciary can be held liable if they engage in fraudulent conduct, such as intentionally misrepresenting facts, concealing information, or misappropriating assets for personal gain.
  4. Lack of capacity or undue influence: If a fiduciary was appointed based on a document that was executed when the decedent or trust grantor lacked capacity or was under undue influence, the appointment may be challenged, and relief sought against the fiduciary.
  5. Conflict of interest: A fiduciary must avoid conflicts of interest that could compromise their ability to act in the best interest of the estate, trust, or incapacitated person. If a conflict of interest arises, it may serve as grounds for relief.
  6. Failure to follow court orders: If a fiduciary fails to comply with court orders, they may be held in contempt and subject to relief.

To seek relief against a fiduciary, interested parties such as beneficiaries, creditors, or other parties with a legal interest in the matter may need to file a petition in Surrogate’s Court. The court may then consider the allegations, and if warranted, compel an accounting, may remove the fiduciary, surcharge them for any losses sustained due to their actions, or take other appropriate actions to ensure the proper administration of the estate or trust.

Please note that laws and procedures may vary by jurisdiction, and the information provided here may not be applicable to your specific situation. For more information regarding New York proceedings for relief against a fiduciary, see New York Surrogate’s Court Procedure Act §2102.

Always consult a qualified  attorney for legal advice pertaining to your unique circumstances.

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