PROBATE PROCEEDING, WILL OF JONES

Citation Codes

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Docket Number

23799

Attorney(S)

Lee, Emerson Ferrarese, LLP, Norwich (Thomas C. Emerson of counsel), for estate.

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Smart Summary

Factual and Procedural Background

The Will of Cecile S. Jones named Richard M. Runyon and Nancy A. Clarke, her daughter, as Co-Executors of her estate. Letters Testamentary were issued to both on August 6, 2003. Nancy A. Clarke submitted a Durable General Power of Attorney naming Richard M. Runyon as her attorney-in-fact to conduct "estate transactions," citing her frequent unavailability due to extensive travel. The Court was asked to consider whether to file this Power of Attorney in the probate proceeding.

Legal Issues Presented

Whether a fiduciary executor may delegate the entire administration of an estate to a co-executor via a Durable General Power of Attorney;
Whether the statutory provisions governing recording of powers of attorney relating to interests in a decedent's estate apply to powers of attorney executed by fiduciaries;
Whether the Court should permit filing of a Durable General Power of Attorney that effectively delegates executorial duties.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent	Rule or Principle Cited For	Application by the Court
Woodbridge v Bockes, 59 A.D. 503 (4th Dept. 1901)	A fiduciary cannot delegate the entire responsibility for administration of an estate or trust; doing so constitutes a breach of trust.	Applied to hold that the attempted delegation via power of attorney by an executor to a co-executor was impermissible and a breach of trust.
Matter of Badenhausen, 38 Misc.2d 698 (Surr. Ct. Richmond Co. 1963)	Supports the principle that fiduciary duties are personal and non-delegable.	Referenced to reinforce that fiduciaries cannot assign full administration duties.
In re George Ringler and Co., 70 Misc. 576 (Sup. Ct. New York Co. 1911)	Fiduciary duties must be personally performed and cannot be delegated.	Used to support the conclusion that the power of attorney was not authorized.
Restatement of Trusts, 2d § 171, cmt. c	Explains the non-delegable nature of fiduciary duties.	Served as an authoritative statement on fiduciary responsibilities.
Scott on Trusts, § 171.1 at 439	Confirms fiduciary duties are personal and non-transferable.	Supported the Court’s reasoning against delegation of executorial duties.

Court's Reasoning and Analysis

The Court analyzed the statutory provisions cited by the fiduciary for filing the Power of Attorney and determined they apply only to beneficiaries' interests in an estate, not to fiduciaries acting as executors. It emphasized the fundamental legal principle that fiduciary duties are personal and cannot be delegated wholesale to another party, including a co-executor. The Court cited multiple precedents establishing that delegation of the entire administration of an estate constitutes a breach of trust and exposes the fiduciary to liability. It found that the phrase "estate transactions" in the General Obligations Law is limited to transactions by beneficiaries and does not authorize a fiduciary to assign total responsibility for estate administration. The Court concluded that if a fiduciary wishes to avoid responsibility, the proper course is to petition for resignation rather than delegate duties by power of attorney.

Holding and Implications

The Court held that the Power of Attorney submitted by Nancy A. Clarke, naming her co-executor Richard M. Runyon as attorney-in-fact to conduct estate transactions, is not authorized and must not be filed.

The Clerk was directed to refuse filing and return the documents to the submitting party. The decision enforces the principle that fiduciary duties are personal and non-delegable, maintaining the integrity of estate administration. No new precedent was set; the ruling reaffirms established fiduciary law principles and limits the use of powers of attorney in the context of executorial duties.

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PROBATE PROCEEDING, WILL OF CECILE S. JONES, a/k/a CECILE RUTH JONES, Deceased.

DECISION AND ORDER

Eugene E. Peckham, Surrogate Judge.

The Will of Cecile S. Jones named as Co-Executors of her estate, Richard M. Runyon and Nancy A. Clarke, her daughter. Letters Testamentary were issued to them on August 6, 2003.

Nancy A. Clarke has submitted to the Clerk of this Court a Durable General Power of Attorney on the New York Statutory Short Form by which she names Richard M. Runyon, her Co-Executor, as her attorney in fact to carry out "estate transactions". In an affidavit submitted with the proposed filing, Mr. Runyon states that Ms. Clarke "travels extensively and is frequently unavailable to execute documents" and "the primary purpose of the Power of Attorney is to allow me to conduct my executorial duties without having to physically send documents to my Co-Executrix for execution."

The Power of Attorney is requested to be filed pursuant to EPTL § 13-2.3; 22 NYCRR 207.48 and § 5-1502G of the General Obligations Law. Those provisions provide rules for recording powers of attorney relating to or affecting "an interest in a decedent's estate." The phrase "interest in the estate" refers to that of a beneficiary, not an executor or other fiduciary. Turano, Practice Commentaries, (McKinneys Com. Laws of NY, Book 173, EPTL 13-2.3). Thus, the section does not apply to the recording of a power of attorney from an executor.

But even more significant, a fiduciary cannot delegate the responsibility for the entire administration of the estate or trust. "The duty of a fiduciary is personal and cannot be divested by delegation." 41 N.Y. Jur.2d, Decedent's Estates § 1479 at p. 84. A fiduciary who does so is liable for breach of trust and potentially subject to surcharge. Woodbridge v Bockes , 59 A.D. 503 (4th Dept. 1901); Matter of Badenhausen , 38 Misc.2d 698 (Surr.Ct. Richmond Co. 1963); In re George Ringler and Co. 70 Misc. 576 (Sup.Ct. New York Co. 1911); Restatement of Trusts, 2d § 171, cmt.c; Scott on Trusts, § 171.1 at 439. Consequently, a fiduciary is not authorized to give a general power of attorney. The phrase "estate transactions" in the General Obligations Law is limited to transactions by an estate or trust beneficiary, and does not apply to an attempted assignment by a fiduciary of total responsibility for the administration of the estate. In Woodbridge , the trustee gave a power of attorney to the husband of the income beneficiary of the trust to manage the trust. The Court held the trustee was guilty of a breach of trust. A fiduciary cannot delegate the whole responsibility for the administration of the estate, even to a co-fiduciary.

If the fiduciary truly does not wish to participate in or be responsible for the administration of the estate, her solution is to petition the court for permission to resign her office. SCPA § 715.

The Clerk is directed not to file the proffered Power of Attorney and to return the papers to the party submitting same without filing.