In the complex world of estate and trust administration, fiduciaries often find themselves at the crossroads of duty, discretion, and legal uncertainty. Whether you're an executor, trustee, or administrator, your role requires navigating intricate financial and interpersonal dynamics while upholding your legal obligations. When the stakes involve business equity, large financial assets, or competing beneficiary interests, the pressure to act decisively—and correctly—can feel overwhelming.

At the Glennon Law Firm, we specialize in representing fiduciaries, guiding them through critical decisions with clarity, precision, and legal expertise. One of the most powerful tools available to fiduciaries in New York is the process of seeking advice and direction from the court under New York’s Surrogate’s Court Procedure Act (SCPA § 2107). Here’s what you need to know.

What Is Advice and Direction?

Advice and direction is a mechanism provided under SCPA § 2107 that allows fiduciaries to petition the court for guidance in extraordinary circumstances. This process is particularly valuable when fiduciaries face:

• Uncertainty about asset valuation: Determining the fair market value of estate assets like business interests or real estate.
• Complex tax considerations: Making critical tax elections that could impact the estate’s financial standing.
• Conflicts among beneficiaries: Resolving disputes between interested parties regarding asset distribution or sale.
• Potential liability concerns: Protecting against claims of self-dealing or improper management decisions.

By seeking judicial guidance, fiduciaries can mitigate the risk of personal liability while ensuring their decisions align with their legal duties.

How Does It Work?

When a fiduciary petitions the court for advice and direction, they outline the specific issue at hand—such as whether to sell a business interest, determine the sale price, or resolve a beneficiary conflict. The court will evaluate whether the fiduciary’s situation warrants intervention. Importantly:

• The court’s role is not to substitute its judgment for that of the fiduciary, but to provide direction in extraordinary circumstances.
• If the court provides advice, and the fiduciary complies substantially with that advice, they are shielded from liability related to that decision.

For example, if beneficiaries disagree over whether to sell estate-owned real estate and at what price, the court may step in to ensure the property is sold at fair market value, protecting the interests of all parties involved.

Why Should Fiduciaries Consider Seeking Advice and Direction?

Fiduciaries often face challenges that are as much about relationships as they are about finances. Beneficiaries may have conflicting priorities, or the fiduciary may feel caught between competing legal and ethical obligations. Seeking advice and direction can:

1. Provide legal clarity: Avoid the uncertainty of acting without court approval.
2. Protect against liability: Demonstrate that you acted in good faith under judicial guidance.
3. Facilitate resolution: Streamline disputes by involving the court as a neutral decision-maker.

Who Benefits from This Process?

Our firm frequently represents fiduciaries such as trustees, executors, and administrators handling estates and trusts involving high-income professionals, business owners, and substantial assets. For example:

• Business owners: Fiduciaries managing an estate with closely held business interests may need guidance on selling or liquidating those assets.
• Executives: High-value financial accounts, stock options, or deferred compensation packages require careful handling.
• Families with large estates: Disputes over real estate, investment portfolios, or inheritance can quickly escalate without proper legal support.

How We Can Help

At the Glennon Law Firm, we combine unmatched litigation experience with a deep understanding of fiduciary duties. Our attorneys work closely with fiduciaries to navigate the legal process, ensuring your decisions are informed, defensible, and aligned with your obligations. From advising on complex-asset management to representing you in court for advice and direction proceedings, we’re here to protect your interests and those of the estate or trust you serve.

When to Act

If you are a fiduciary facing a difficult decision, don’t wait until a dispute escalates. Proactively seeking advice and direction can save time, reduce conflict, and protect your reputation. Contact us today to schedule a consultation. Together, we’ll help you navigate your fiduciary responsibilities with confidence and clarity.

To learn more about topics regarding trust and estate litigation, you may want to review the information provided on our website pages: Executor Rights and Responsibilities, Spousal Election, Undue Influence, Importance of Having a Properly Executed Will.

You may learn more about us and how we operate by visiting these pages: About Us and What Sets Us Apart.

This post is not intended as legal advice, but rather for educational purposes.