N.Y. EPT Law § 11-1.1 — New York Code / Act EPT / Article 11 / Part 1 / Section 11-1.1
Fiduciaries' powers
Status: in_force

§ 11-1.1 Fiduciaries' powers\n  (a) As used in this section, unless the context or subject matter\notherwise requires, (1) the term "estate" means the estate of a\ndecedent; (2) the term "trust" means any express trust of property,\ncreated by a will, deed or other instrument, whereby there is imposed\nupon a trustee the duty to administer property for the benefit of a\nnamed or otherwise described income or principal beneficiary, or both. A\ntrust shall not include trusts for the benefit of creditors, resulting\nor constructive trusts, business trusts where certificates of beneficial\ninterest are issued to the beneficiary, investment trusts, voting\ntrusts, security instruments such as deeds of trust and mortgages,\ntrusts created by the judgment or decree of a court, liquidation or\nreorganization trusts, trusts for the sole purpose of paying dividends,\ninterest, interest coupons, salaries, wages, pensions or profits,\ninstruments wherein persons are mere nominees for others, or trusts\ncreated in deposits in any banking institution or savings and loan\ninstitution; (3) the term "fiduciary" means administrators, executors,\npreliminary executors, administrators d.b.n., administrators\nc.t.a.d.b.n., administrators c.t.a., ancillary executors, ancillary\nadministrators, ancillary administrators c.t.a and trustees of express\ntrusts, including a corporate as well as a natural person acting as\nfiduciary, and a successor or substitute fiduciary, whether designated\nin a trust instrument or otherwise.\n  (b) In the absence of contrary or limiting provisions in the court\norder or decree appointing a fiduciary, or in a subsequent order or\ndecree, or in the will, deed or other instrument, every fiduciary is\nauthorized:\n  (1) To accept additions to any estate or trust from sources other than\nthe estate of the decedent or the settlor of a trust.\n  (2) To acquire the remaining undivided interest in the property of an\nestate or trust in which the fiduciary, in his fiduciary capacity, holds\nan undivided interest.\n  (3) To invest and reinvest property of the estate or trust under the\nprovisions of the will, deed or other instrument or as otherwise\nprovided by law.\n  (4) To effect and keep in force fire, rent, title, liability, casualty\nor other insurance to protect the property of the estate or trust and to\nprotect the fiduciary.\n  (5) With respect to any property or any estate therein owned by an\nestate or trust, except where such property or any estate therein is\nspecifically disposed of:\n  (A) To take possession of, collect the rents from and manage the same.\n  (B) To sell the same at public or private sale, and on such terms as\nin the opinion of the fiduciary will be most advantageous to those\ninterested therein.\n  (C) With respect to fiduciaries other than a trustee, to lease the\nsame for a term not exceeding three years and, in the case of a trustee,\nto lease the same for a term not exceeding ten years although such term\nextends beyond the duration of the trust and, in either of such cases,\nincluding the right to explore for and remove mineral or other natural\nresources, and in connection with mineral leases to enter into pooling\nand unitization agreements.\n  (D) To mortgage the same.\n  (E) Any power to take possession of, collect the rent from, manage,\nsell, lease or mortgage, granted by this subparagraph (5), which is\nprohibited by the terms of the will, deed or other instrument or by the\nprovisions of this subparagraph (5), nonetheless exists, upon the\napproval of the surrogate, where such power is necessary for the\npurposes set forth in SCPA 1902.\n  (F) A fiduciary acting under a will may exercise all of the powers\ngranted by this subparagraph (5) notwithstanding the effect upon such\nwill of the birth of a child after its execution or of any election by a\nsurviving spouse.\n  (6) To make ordinary repairs to the property of the estate or trust.\n  (7) To grant options for the sale of property for a period not\nexceeding six months.\n  (8) With respect to any mortgage held by the estate or trust (A) to\ncontinue the same upon and after maturity, with or without renewal or\nextension, upon such terms as the fiduciary deems advisable; (B) to\nforeclose, as an incident to collection of any bond or note, any\nmortgage securing such bond or note, and to purchase the mortgaged\nproperty or acquire the property by deed from the mortgagor in lieu of\nforeclosure.\n  (9) To employ any bank or trust company incorporated in this state,\nany national bank located in this state or any private banker duly\nauthorized by the superintendent of financial services of this state to\nengage in business here (who, as private banker, maintains a permanent\ncapital of not less than one million dollars) as custodian of any stock\nor other securities held as a fiduciary, and the cost thereof, except in\nthe case of a corporate fiduciary, shall be a charge upon the estate or\ntrust. The records of such bank, trust company or private banker shall\nat all times show the ownership of such stock or other securities. Such\nstock or other securities shall at all times be kept separate from the\nassets of such bank, trust company or private banker and may be kept by\nsuch bank, trust company or private banker\n  (A) in a manner such that all certificates representing the securities\nfrom time to time constituting the assets of a particular estate, trust\nor other fiduciary account are held separate from those of all other\nestates, trusts or accounts; or\n  (B) in a manner such that, without certification as to ownership\nattached, certificates representing securities of the same class of the\nsame issuer and from time to time constituting assets of particular\nestates, trusts or other fiduciary accounts are held in bulk, including,\nto the extent feasible, the merging of certificates of small\ndenomination into one or more certificates of large denomination,\nprovided that a bank, trust company or private banker, when operating\nunder the method of safekeeping security certificates described in this\nsubparagraph (B), shall be subject to such rules and regulations as, in\nthe case of state chartered institutions, the state superintendent of\nfinancial services and, in the case of national banking associations,\nthe comptroller of the currency may from time to time issue. Such bank,\ntrust company or private banker shall, on demand by the fiduciary,\ncertify in writing the securities held by it for such estate, trust or\nfiduciary account.\n  (10) To cause any stock or other securities (hereinafter referred to\nas "securities") held by any bank or trust company, when acting as\nfiduciary, whether alone or jointly with an individual, with the consent\nof the individual fiduciary, if any (who is hereby authorized to give\nsuch consent), to be registered and held in the name of a nominee of\nsuch bank or trust company without disclosure of the fiduciary\nrelationship; and, in the case of an individual acting as fiduciary, to\ndirect any bank or trust company incorporated under the laws of this\nstate, any national bank located in this state or any private banker\nduly authorized by the superintendent of financial services of this\nstate to engage in business here (who, as private banker, maintains a\npermanent capital of not less than one million dollars) to register and\nhold any securities deposited with such bank, trust company or private\nbanker (hereinafter referred to as "bank") in the name of a nominee of\nsuch bank. The bank shall not redeliver such securities to the\nindividual fiduciary, who authorized their registration in the name of a\nnominee of the bank, without first registering the securities in the\nname of the individual fiduciary, as such. But, any sale of such\nsecurities by the bank at the direction of the individual fiduciary\nshall not be treated as a redelivery. The bank may make any disposition\nof such securities which is authorized or directed by an order or decree\nof the court having jurisdiction of the estate or trust. Any such bank\nshall be absolutely liable for any loss occasioned by the acts of its\nnominee with respect to the securities so registered. The records of the\nbank shall at all times show the ownership of any such securities and of\nthose held in bearer form. Such securities and those held in bearer form\nshall at all times be kept separate from the assets of the bank and may\nbe kept by such bank\n  (A) in a manner such that all certificates representing the securities\nfrom time to time constituting the assets of a particular estate, trust\nor other fiduciary account are held separate from those of all other\nestates, trusts or accounts; or\n  (B) in a manner such that, without certification as to ownership\nattached, certificates representing securities of the same class of the\nsame issuer and from time to time constituting assets of particular\nestates, trusts or other fiduciary accounts are held in bulk, including,\nto the extent feasible, the merging of certificates of small\ndenomination into one or more certificates of large denomination,\nprovided that a bank, when operating under the method of safekeeping\nsecurity certificates described in this subparagraph (B), shall be\nsubject to such rules and regulations as, in the case of state chartered\ninstitutions, the state superintendent of financial services and, in the\ncase of national banking associations, the comptroller of the currency\nmay from time to time issue. Such bank or trust company shall, on demand\nby any party to an accounting by such bank or trust company as fiduciary\nor on demand by the attorney for such party, certify in writing the\nsecurities held by such bank or trust company as such fiduciary.\n  (11) In the case of the survivor of two or more fiduciaries, to\ncontinue to administer the property of the estate or trust without the\nappointment of a successor to the fiduciary who has ceased to act and to\nexercise or perform all of the powers given to the original fiduciaries\nunless contrary to the express provision of the will, deed or other\ninstrument.\n  (12) As successor or substitute fiduciary, to succeed to all of the\npowers, duties and discretion of the original fiduciary, with respect to\nthe estate or trust, as were given to the original fiduciary, unless the\nexercise of such powers, duties or discretion of the original fiduciary\nare expressly prohibited by the will, deed or other instrument to any\nsuccessor or substituted fiduciary.\n  (13) To contest, compromise or otherwise settle any claim in favor of\nthe estate, trust or fiduciary or in favor of third persons and against\nthe estate, trust or fiduciary.\n  (14) To vote in person or by proxy, discretionary or otherwise, shares\nof stock or other securities held by him as fiduciary.\n  (15) To pay calls, assessments and any other sums chargeable or\naccruing against or on account of shares of stock, bonds, debentures or\nother corporate securities held by a fiduciary, whenever such payments\nmay be legally enforceable against the fiduciary or any property of the\nestate or trust or the fiduciary deems payment expedient and for the\nbest interests of the estate or trust.\n  (16) To sell or exercise stock subscription or conversion rights,\nparticipate in foreclosures, reorganizations, consolidations, mergers or\nliquidations, and to consent to corporate sales, leases and\nencumbrances. In the exercise of such powers the fiduciary is authorized\nto deposit stocks, bonds or other securities with any protective or\nother similar committee under such terms and conditions respecting the\ndeposit thereof as the fiduciary may approve.\n  (17) To execute and deliver agreements, assignments, bills of sale,\ncontracts, deeds, notes, receipts and any other instrument necessary or\nappropriate for the administration of the estate or trust.\n  (18) In the case of a trustee, to hold the property of two or more\ntrusts or parts of such trusts created by the same instrument as an\nundivided whole without separation as between such trusts or parts,\nprovided that such separate trusts or parts shall have undivided\ninterests and provided further that no such holding shall defer the\nvesting of any estate in possession or otherwise.\n  (19) When a legacy, a distributive share, the proceeds of any action\nbrought as prescribed by 5-4.1, or the proceeds of a settlement of an\naction brought in behalf of an infant for personal injuries are payable\nto an infant, incompetent, conservatee or person under disability and\nthe sum does not exceed ten thousand dollars, to make payment thereof to\nthe father or mother or to some competent adult person with whom the\ninfant, incompetent, conservatee or person under disability resides or\nwho has some interest in his welfare for the use and benefit of such\ninfant, incompetent, conservatee or person under disability. If the sum\npayable to a patient in an institution in the state department of mental\nhygiene is not in excess of the amount which the director of the\ninstitution is authorized to receive under section 29.23 of the mental\nhygiene law, to make payment of such sum to such director for use as\nprovided in that section.\n  (20) To make distribution in cash, in kind valued at the fair market\nvalue of the property at the date of distribution, or partly in each,\nwithout being required to make pro rata distributions of specific\nproperty.\n  (21) To join with the surviving spouse or the executor of his will or\nthe administrator of his estate in the execution and filing of a joint\nincome tax return for any period prior to the death of a decedent for\nwhich he has not filed a return or a gift tax return on gifts made by\nthe decedent's surviving spouse, and to consent to treat such gifts as\nbeing made one-half by the decedent, for any period prior to a\ndecedent's death, and to pay such taxes thereon as are chargeable to the\ndecedent.\n  (22) In addition to those expenses specifically provided for in this\nparagraph, to pay all other reasonable and proper expenses of\nadministration from the property of the estate or trust, including the\nreasonable expense of obtaining and continuing his bond and any\nreasonable counsel fees he may necessarily incur.\n  (c) The court having jurisdiction of the estate or trust may authorize\nthe fiduciary to exercise any other power which in the judgment of the\ncourt is necessary for the proper administration of the estate or trust.\n  (d) The powers set forth in this section shall apply to all estates\nand trusts now in existence or which may hereafter come into existence\nand are in addition to the powers granted by law or by the will, deed or\nother instrument.\n