Surrogate Margaret C. Reilly
Valley National Bank sought leave to execute a judgment, entered against decedent and a corporate defendant in an underlying suit, against estate assets for nearly $33,000 for funds it loaned to Y.M. Intercontinental Gem Corp., personally guaranteed by decedent. It sought to execute the judgment against proceeds awarded in decedent’s favor in a personal injury lawsuit in possession of a law firm holding the funds as a garnishee. Guardian ad litem appointed for decedent’s two minor children opposed the requested relief contending the funds would significantly affect the children’s ability to have a “basic lifestyle.” Santander Bank also alleged it extended a loan to Y.M. with a nearly $81,000 outstanding balance. The court noted there were two creditors and both claims together exceeded the purported estate assets. The court concluded that as it appeared the estate was insolvent to pay all debts against the fiduciary, it ruled that it appeared to be in the estate’s best interest to order executor wife, Monika Hakimian to file an account of her proceedings as executor. Therefore, the court denied the petition for leave to execute on a money judgment without prejudice to renewal in the accounting proceeding.