The role of the executor of an estate includes many functions, e.g., collecting and protecting the estate assets, paying debts, taxes and expenses and distributing the estate assets to the beneficiaries as soon as practical and in accordance with the decedent’s wishes as expressed in the will. Section 11-1.1 of the New York Estates Powers and Trusts Law lists the powers of the executor. Although the powers are quite broad, the authority is not unlimited. For example, in a recent case, Community Burn and Wound Treatment Services, P.C. v. Staten Island University Hospital, NYLJ, Aug. 18, 2009, at 27, Col. 3 (Richmond Co. Sup. Ct.), the decedent was a licensed physician who was the sole owner of a professional corporation. The court found that the authority of the executor to step in as an officer of the professional corporation was limited because the executor was not a licensed physician and therefore the executor did not have powers reserved for members of the medical profession.

In general, an executor may only continue the sole proprietorship business of the decedent if the will explicitly provides for it or the executor petitions the court under the Surrogate’s Court Procedure Act (SCPA) §2108. Under §2108, the executor may petition the court to allow for the continuation of the decedent’s sole proprietorship if it is not a profession and if it would be in the best interests of the estate. The Surrogate’s Court will not entertain petitions to continue businesses which are professions, partial business interests, partnership interests or corporate stock held by a decedent.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]