There are many different obligations and aspects to the role of an estate executor or administrator. Their primary duty is to collect assets and satisfy estate obligations. In most instances, the assets owned by a decedent are easily identified and collected, such as bank accounts, real estate, financial accounts and retirement funds. Likewise, the identification and satisfaction of obligations is typically uncomplicated with regard to items such as credit card bills, car loans, mortgages and other consumer debt obligations.
A recent Manhattan case decided by Manhattan Surrogate Rita Mella on August 18, 2022 entitled “Estate of Buhannic” involved a number of important aspects regarding estate settlement.
In Buhannic, the Court had issued letters to the fiduciaries which contained restrictions prohibiting the fiduciaries from disposing or selling estate assets without the further order of the Court. This is a common type of restriction which often appears in letters of administration in intestate cases. Such language requires that the administrator seek Court approval for a transaction. Thus, interested parties in the estate would receive notice of the request for approval made to the Court and may review the appropriateness of the matter. Any Objections can then be dealt with. In the Buhannic case, the fiduciaries sought to sell shares of stock in order to pay estate obligations. The parties ended up agreeing on the sale and the Surrogate required that the fiduciaries obtain a surety bond to secure their use of the funds.