Call Today: 212-233-1233

Fighting Allegations of New York Fiduciary Mismanagement

As a fiduciary of a New York estate, you have the responsibility to prudently manage the estate assets. As long as you do your job, you are not a risk of being removed or responsible for financial losses to the estate.

Part of the duties of a fiduciary are to keep accurate and complete records of how the estate funds have been handled and to keep the beneficiaries advised of any major financial decisions that may affect their inheritances. A beneficiary of a New York estate, trust or guardianship has the legal right to request a review of the accounting of the fiduciary’s activity and to bring about an action with the New York Surrogate’s Court. If beneficiaries have sufficient evidence to establish that estate funds have been mismanaged, they can ask the court to remove a fiduciary and receive compensation from the fiduciary.

Fighting Mismanagement Allegations

The fiduciary has the right to fight the allegations of mismanagement and breach of fiduciary duty and to defend their actions and decisions in court. In fighting the allegations of mismanagement, the prudent manager rule applies. This means that the fiduciary will need to show that the fiduciary acted in a reasonable and prudent manner even if the estate suffered financial losses. In doing so the fiduciary will need to provide an accounting of their management of the estate and justify reimbursement for any expenses with receipts and other documentation.

Example of the Prudent Manager Rule

For instance, let’s say the fiduciary received three real estate appraisals for the value of the decedent’s primary residence. The fair market value for the home was $105,000, and the home sold for $100,000. The fiduciary’s decision to sell the home for $100,000, after discussing it with the beneficiaries, would probably be considered a reasonable and prudent decision and would not be considered mismanagement of estate funds.

Despite the fact that one of the beneficiaries wanted $120,000 for the home and was unhappy with the sale proceeds, the appraisals established that market values had fallen a couple years prior to the decedent’s death, and it was not possible to receive $120,000. The fact that the house was worth less than the beneficiary wanted had nothing to do with the fiduciary’s actions. Therefore, the fiduciary was not responsible for the loss in the value of the home.

Example of Breach of Fiduciary Duty

However, if the fiduciary agreed to the sale of that same property for $50,000 to a friend, and the friend sold the property back to the fiduciary for $65,000 a few months after the first sale, then there would be sufficient evidence to show that the fiduciary received personal monetary from the estate assets and had breached a fiduciary duty to the estate and to the beneficiaries. The fiduciary could be personally liable for the loss to the estate, and the court would most likely remove the fiduciary and appoint a new one.

New York Probate and Estate Attorney

If you are fighting allegations of mismanagement require the assistance of an experienced New York probate and estate attorney, call the Law Offices of Albert Goodwin at (212) 233-1233 and schedule a consultation.

Attorney Albert Goodwin

About the Author

Albert Goodwin Esq. is a licenced New York attorney with over 17 years of courtroom experience. His extensive knowledge and expertise make him well-qualified to write authoritative articles on a wide range of legal topics. He can be reached at 212-233-1233 or [email protected].

Albert Goodwin gave interviews to and appeared on the following media outlets:

ProPublica Forbes ABC CNBC CBS NBC News Discovery Wall Street Journal NPR

Client Reviews

Verified feedback from our clients

Mr. Goodwin is everything you want in an attorney: professional, honest, thorough, and genuinely caring. He always explains things clearly, so I understood exactly what was happening and what to expect next. His attention to detail and persistence really stood out. Looking back, I feel lucky to have found him. He guided me through the whole process expertly, and I deeply appreciate all his hard work. Would definitely recommend him to anyone needing legal help.

Sarah M

Legal Services

Thanks to Mr. Albert Goodwin's hard work and smart thinking, I finally won my case, which has been a long time coming. He figured out solutions that no one else could see. I'm really impressed by his strong ethics - something that's rare these days. As my lawyer, he went above and beyond what I expected. I'm so grateful I found him and would definitely recommend him to anyone needing legal help.

Lawrence H

Legal Services

From our first meeting, I knew I was in great hands with Albert and his associate Katrina. They handled my case with incredible skill and efficiency, even though they took it over from another firm. What impressed me most was how quickly Albert responded to my questions with honest, clear answers - no sugarcoating, just straight talk. They managed a huge workload under tight deadlines, and their fees were very reasonable for such high-quality work. Beyond his legal expertise, Albert's wit and personality made a difficult process much easier to handle. I'm deeply grateful for their hard work and would absolutely choose them again. If you need legal help in New York, you won't find better representation than Albert's firm.

Adam F

Legal Services

VIEW MORE
New York State Bar Association Member Badge New York City Bar Association Member Badge American Bar Association Member Badge Avvo Rated Attorney Badge