Although uncommon, it is not entirely unheard of for a family to become embattled in a decades-long dispute over an estate. However, what tends to be beyond the realm is when such a legal battle lands the two executors of the estate in jail. That is exactly what happened in a recent fight between five siblings for their mother’s estate (the “Deceased”) in New York.

The Deceased passed away in 2006, and named two of her daughters, Jean and Irene, as the executors of her estate. All five of the Deceased’s children were named as beneficiaries of the estate. The estate was worth $2.7 million, with the Deceased’s husband amassing his wealth manufacturing specialized miniature light bulbs.

The legal battle commenced two years after their mother’s death. The siblings fought over various issues in the administration of the estate, accusing the executors that they were too slow to sell their mother’s home, objecting to their use of the estate’s funds to pay for legal fees, and criticizing the costs of pursuing mineral rights owned by their mother.

In a hearing at the Surrogate’s Court in Queens in April 2016, Jean and Irene were in contempt of court over a $100,000 distribution made to each of the beneficiaries, which the three other siblings refused to cash. When the judge ordered Jean and Irene to return their checks, Irene refused, landing both sisters in Rikers Island jail as the judge held their actions were “entwined”. After their 21-day stint in jail, the sisters were released and were replaced as executors of the estate by one of their sisters.

A final judgment in the estate in 2018 was entered into against Jean and Irene for $1.8 million, ordering that they return the money they used for legal fees and other expenses for settling the estate. To pay the $1.8 million judgment, Jean is selling her Manhattan condo. The two sisters are moving to appeal the judge’s ruling against a motion to vacate the judgment.

It is an important reminder that executors have a fiduciary obligation to beneficiaries to see to the prudent and timely administration of the estate. In this case, the improper actions of the executors were enough to warrant their removal by the judge. Another key takeaway is for estate trustees to abide by all court orders to avoid being found in contempt of court, which notably has led to jail time in the estates context in Ontario as well.

Thanks for reading,

Endrita Isaj