S 8295: Requires all letters granted to personal representatives contain restrictions on compromising any cause of action arising from the death of the decedent.

  
  STATE OF NEW YORK ________________________________________________________________________ 8295 2025-2026 Regular Sessions  IN SENATE May 30, 2025 ___________ Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the surrogate's court procedure act, in relation to requiring all letters granted to personal representatives contain certain restrictions The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 702 of the surrogate's court procedure act, subdi- 2 vision 2 as amended by chapter 685 of the laws of 1967, subdivisions 8 3 and 9 as added, subdivision 10 as renumbered and the closing paragraph 4 as amended by chapter 514 of the laws of 1993, is amended to read as 5 follows: 6 § 702. Limited and restrictive letters 7 1. Letters granted to a personal representative, or an administrator 8 appointed under section 5-4.1 of the estates, powers and trusts law 9 shall restrain the holder thereof from compromise of any cause of action 10 arising from the death of the decedent or the enforcement of a judgment 11 recovered therein until further order of the court. 12 2. Letters may be granted limiting and restricting the powers and 13 rights of the holder thereof: 14 [1.] (a) To the enforcement or prosecution of a cause of action in 15 favor of the decedent or [his] such decedent's fiduciary under general 16 or special provisions of law, to the defense of any claim or cause of 17 action against a decedent or [his] such decedent's fiduciary, and 18 restraining the fiduciary from compromise of the action or the enforce- 19 ment of a judgment recovered therein until the further order of the 20 court and the filing of satisfactory security if required. 21 [2.] (b) Where it is impracticable to give a bond in the full amount 22 required by statute, to receiving and administering only the property 23 which the court may specify, and restraining [him] such holder from EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11973-01-5 
 S. 8295 2 1 receiving or administering other property until further order of the 2 court. 3 [3.] (c) To the adjustment, settlement, satisfaction or discharge of 4 any claim in favor of or against the decedent or [his] such decedent's 5 fiduciary. 6 [4.] (d) To the performance of any act required in order to discharge 7 the estate of a decedent from liability. 8 [5.] (e) To an account in behalf of the decedent for the performance 9 by [him] such holder of any trust or other responsibility. 10 [6.] (f) To the completion of any transfer made by a decedent or [his] 11 such decedent's fiduciary and to the execution of any instruments 12 confirming any transfer so made. 13 [7.] (g) To the appearance in and conduct of an action in which a 14 decedent or [his] such decedent's fiduciary is a necessary or proper 15 party. 16 [8.] (h) In the discretion of the court, to represent the estate in a 17 transaction in which the acting fiduciary could not or should not act in 18 [his or her] their fiduciary capacity because of conflict of interest. 19 [9.] (i) To commence and maintain any action or proceeding against the 20 fiduciary, in [his or her] such fiduciary's individual capacity, or 21 against anyone else against whom the fiduciary fails or refuses to bring 22 such a proceeding. 23 [10.] (j) To any other purpose or act deemed by the court to be appro- 24 priate or necessary in respect of the affairs of the estate, the 25 protection thereof or to the proper administration thereof. 26 3. In any case where limited and restrictive letters are granted the 27 court may reduce the amount of security otherwise required or dispense 28 therewith according to the circumstances. 29 4. Any letters may contain appropriate recitals restraining the holder 30 from doing any such acts or exercising any such powers as may be speci- 31 fied therein until the further order of the court and upon the filing, 32 if ordered, of satisfactory security. The issuance of limited or 33 restrictive letters under this section may be in addition to the issu- 34 ance of general letters or other, limited or restrictive letters. 35 § 2. This act shall take effect immediately.