New York Estates, Powers and Trusts Law (EPTL) § 11-1.7 serves as a critical safeguard in estate planning, ensuring that fiduciaries—executors, testamentary trustees, and inter vivos trustees—cannot be granted powers or immunities that conflict with public policy. By imposing limits on the extent to which fiduciaries can be exonerated from liability or exercise unchecked discretion, this statute reflects the fundamental principle that fiduciaries must act with reasonable care, diligence, and prudence. These limitations protect the interests of beneficiaries and uphold the integrity of fiduciary relationships. Understanding these statutory restrictions is essential for anyone involved in drafting or administering wills and trusts in New York.
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§ 11-1.7 Limitations on powers and immunities of executors and testamentary trustees
(a) The attempted grant to an executor, testamentary trustee, or inter vivos trustee, or his or her successor, of any of the following enumerated powers or immunities is contrary to public policy:
(1) The exoneration of such fiduciary from liability for failure to exercise reasonable care, diligence and prudence.
(2) The power to make a binding and conclusive fixation of the value of any asset for purposes of distribution, allocation or otherwise.
(b) The attempted grant in any will or trust of any power or immunity in contravention of the terms of this section shall be void but shall not be deemed to render such will or trust invalid as a whole, and the remaining terms of the instrument shall, so far as possible, remain effective.
(c) Any person interested in an estate or trust may contest the validity of any purported grant of any power or immunity within the purview of this section without diminishing or affecting adversely his or her interest in the estate or trust any provision in any will or trust to the contrary notwithstanding.
For other sections of the New York EPTL, see the Outline.
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