In the complex world of estate and trust administration, the appointment of a fiduciary—such as an executor, administrator, or trustee—often provides a sense of structure and stability after someone passes away. But what happens when that fiduciary can no longer be trusted to do the job? Whether due to misconduct, incapacity, or simple failure to follow the rules, the Surrogate’s Court in New York has the authority to suspend, modify, or revoke the fiduciary’s legal authority, which is derived from court papers often referred to as their “letters” of appointment.
Both the fiduciaries and the beneficiaries should understand this process.
What Are “Letters” from the Surrogate’s Court?
These formal legal documents issued by the Surrogate’s Court give a fiduciary the authority to act:
- Letters Testamentary empower an executor named in a will to manage the estate
- Letters of Administration appoint someone to manage the estate if there’s no will
- Letters of Trusteeship are issued to trustees under certain court-supervised trusts
These fiduciaries are expected to act in the best interests of the estate or trust and follow the law and the court’s orders. But when things go wrong, the court does not stand by passively.
When Can the Court Suspend, Modify, or Revoke a Fiduciary’s Authority?
According to the New York’s Surrogate’s Court Procedure Act (“SCPA”) the court may intervene in the following scenarios:
- Misconduct or breach of duties. If a fiduciary acts dishonestly, mishandles funds, fails to provide required information, or otherwise breaches their obligations, the court can revoke or suspend their authority.
- Failure to follow court orders. A fiduciary who fails to file inventories, accountings, or other required documents can be penalized or even removed.
- Substantial risk or concern. Even before formal misconduct is proven, the court can act if there is a substantial basis to be concerned about the fiduciary’s ability to fulfill their role.
- Temporary suspension for immediate protection. The court can issue a temporary suspension of authority while it investigates, especially if estate assets may be at risk.
Who Can Raise the Issue?
Any interested party—including a co-fiduciary (such as co-executors, co-trustees, or co-administrators), beneficiary (individuals or entities entitled to receive assets from the estate or trust), creditor (those to whom the estate or trust owes a financial obligation), or heir—can ask the court to step in.
This means that if you are a business partner of the deceased and owed money or a business interest, an heir waiting on an accounting, or a co-executor worried about your counterpart’s actions, you may have the legal standing to bring concerns before the court.
Real-World Examples for Professionals and Business Owners
- A co-executor refuses to file required financial disclosures and has not communicated with the beneficiaries. You can ask the court to suspend or remove the co-executor.
- A trustee starts making personal use of trust funds. The court can remove them and appoint a neutral third party.
- A fiduciary becomes incapacitated due to health issues and cannot manage the estate properly. The court may revoke his or her authority and appoint a replacement.
What Law Governs This?
The court relies on SCPA §§ 711 and 719 to suspend or revoke fiduciary authority. These sections outline the grounds for removal or modification. For trustees, the court looks to EPTL § 7-2.6, which governs the removal of trustees due to misconduct, unfitness, or inability to serve.
What’s the Standard?
The fiduciary does not have to be guilty of a crime to be removed. The standard is often whether continued service would be detrimental to the administration of the estate or trust.
Why It Matters for Our Clients
If you are a high-level professional, business owner, or someone managing significant assets, a poorly performing or dishonest fiduciary can result in delays, lost value, tax issues, and emotional stress. Understanding your rights and how the court can act ensures that your financial interests—and your family’s legacy—are protected. Whether you are the fiduciary and want to ensure you are meeting your obligations or are facing complaints from beneficiaries, or you are a beneficiary concerned about a fiduciary, we can help guide you through these complex matters with clarity and strength.
At The Glennon Law Firm, we focus exclusively on litigation—including trust and estate disputes—for professionals and business owners across New York. If you’re facing a fiduciary issue, contact us for experienced, strategic guidance. You may learn more about us and how we operate by visiting these pages: About Us and What Sets Us Apart.
We can help you in Albany, Buffalo, Rochester, New York City, and everywhere in between.
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This blog post is for informational purposes only and does not constitute legal advice. For specific legal counsel, please contact our office directly.