Working with others · 6 min read
Impartiality is the trustee's anchor
EPTL 11-A-1.3 provides that a fiduciary exercises discretion over principal and income impartially, based on what is fair and reasonable to all of the beneficiaries, unless the terms clearly intend that one or more be favored. A trustee who can show the reasons for each decision, recorded when it was made, is in a far stronger position than one who must reconstruct them.
New York's undivided-loyalty rule comes from the courts, and it is strict; EPTL 7-2.4 adds that an act of a trustee in contravention of an expressed trust, unless authorized by law, is void.
The routes a beneficiary has
A beneficiary may compel information after a written request fails (SCPA 2102(1)), ask the court to compel an intermediate or final account (SCPA 2205), and petition to suspend or remove a trustee on the grounds SCPA 711 lists — among them wasting or improperly applying the assets — or ask the Supreme Court to remove a trustee who has violated or threatens to violate the trust (EPTL 7-2.6(a)(2)). The court may also act without process in the cases SCPA 719 lists.
The Supreme Court also hears a special proceeding to determine a matter relating to an express trust, in which any party may examine the trustees under oath about their administration (CPLR 7701).
Settling instead of litigating
Many disagreements end with an account settled by agreement: an instrument settling the account, signed by everyone who would be cited in a judicial settlement, binds the persons they represent unless it provides otherwise (SCPA 315(8)). Where agreement fails, the trustee may petition for the account's judicial settlement (SCPA 2208), and the decree settles it as to the persons served.
The trustee's own counsel
A trustee facing a dispute may engage counsel; the reasonable counsel fees a fiduciary necessarily incurs are an expense of administration (EPTL 11-1.1(b)(22)), subject to the court's review (SCPA 2110), and the trustee's communications with that counsel are protected — a beneficiary is not the client by status alone (CPLR 4503(a)(2)). A licensed New York attorney of the trustee's choosing can explain how these routes apply to a particular disagreement.
The statutes, verbatim
Special proceeding relating to express trust
CPLR 7701 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Fiduciary duties; general principles
EPTL 11-A-1.3 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Compulsory account and related relief on a court's own initiative or on petition; who may petition
SCPA 2205 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Suspension, modification or revocation of letters or removal for disqualification or misconduct
SCPA 711 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Common questions
Can a beneficiary force a New York trustee to account?
Yes. The Surrogate's Court may order a trustee to file an intermediate or final account on a person interested's petition, and may suspend a trustee who fails to (SCPA 2205).
Can beneficiaries remove a New York trustee?
Not by their own vote unless the instrument provides a method; they may petition the court, which may suspend or remove a trustee on the statutory grounds (SCPA 711; EPTL 7-2.6(a)(2)) and may act without process in the cases SCPA 719 lists.
Does a New York trustee have to share legal advice with beneficiaries?
Generally not. Where an attorney represents a lifetime trustee in that capacity, a beneficiary is not the client by status alone, and the fiduciary relationship does not by itself waive the privilege (CPLR 4503(a)(2)).
Related reading
The Learning Center is general information about New York law — not legal advice, and not a substitute for advice from a licensed New York attorney about your specific facts. TrusteeClear is software, not a law firm.
Frequently asked questions
- Can a beneficiary force a New York trustee to account?
- Yes. The Surrogate's Court may order a trustee to file an intermediate or final account on a person interested's petition, and may suspend a trustee who fails to (SCPA 2205).
- Can beneficiaries remove a New York trustee?
- Not by their own vote unless the instrument provides a method; they may petition the court, which may suspend or remove a trustee on the statutory grounds (SCPA 711; EPTL 7-2.6(a)(2)) and may act without process in the cases SCPA 719 lists.
- Does a New York trustee have to share legal advice with beneficiaries?
- Generally not. Where an attorney represents a lifetime trustee in that capacity, a beneficiary is not the client by status alone, and the fiduciary relationship does not by itself waive the privilege (CPLR 4503(a)(2)).
General information about New York law, not legal advice.