When an estate has multiple executors (co-fiduciaries), disagreements can arise over various aspects of estate administration. A possible source of conflict is whether to accept or reject a creditor’s claim against the estate. If co-executors cannot agree on how to handle a claim, the estate’s administration can stall, potentially delaying distributions to beneficiaries and leading to legal complications.
The question then becomes: What legal mechanisms exist to resolve disputes between co-executors regarding a claim against the estate?
Executors’ Fiduciary Duties
Co-executors share fiduciary responsibilities, meaning they must act in the estate's best interests, balancing duties to creditors and beneficiaries. Importantly:
- Each co-executor has an obligation to ensure valid creditor claims are paid.
- At the same time, they must protect the estate from invalid claims that could diminish assets meant for beneficiaries.
- If a co-executor knowingly allows the estate to be harmed (by paying an invalid claim or refusing a valid one), they could be held liable for a breach of fiduciary duty.
Given these competing responsibilities, disagreement over a claim presents a serious challenge that must be resolved efficiently.
Legal Avenues for Resolution
1. Statutory Mechanism: SCPA 1809 – Proceeding to Determine Validity of Claims
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- Creditor Claims
- Co-Executors
- Estate Administration
- Executors
- New York
- NY SCPA 719
- NY SCPA 1809
- NY SCPA 2107
- 🔑 Premium Content
- Probate
Hani Sarji
New York lawyer who cares about people, is fascinated by technology, and is writing his next book, Estate of Confusion: New York.