In the Matter of the Estate of Bonnie Lee Lavorato, Deceased

Summary

The Surrogate’s Court denied a fiduciary’s motion to dismiss a beneficiary’s proceeding under SCPA 2102(1) seeking information about a corporation wholly owned by the estate. The court held that the beneficiary had standing and that the dispute implicated estate administration, but limited the requested relief and directed production of the corporate bylaws, amendments, and any agreement listing the business for sale.

Holdings

1. An estate beneficiary is a person interested in the assets and affairs of the estate and may seek information under SCPA 2102(1) even though the beneficiary is not a shareholder of the estate-owned corporation.
2. The proceeding falls within the Surrogate's Court's jurisdiction because the corporation's shares were estate assets intended to be sold and the sale proceeds distributed to the beneficiaries.
3. The statutory right to seek information concerning estate assets is broad and may include materials held by an entity controlled by the fiduciary when those materials aid valuation or administration of estate assets.
4. The beneficiary was entitled to targeted production of the corporate bylaws, amendments to the bylaws, and any agreement listing the business for sale, but not to blanket production of all corporate information or an order dictating when the fiduciary must sell the corporation.

Questions Presented

1. Whether an estate beneficiary who is not a shareholder has standing under SCPA 2102(1) to seek information concerning an estate-owned corporation.
2. Whether a proceeding concerning the executor's management of an estate-owned corporation is a dispute between living parties beyond the Surrogate's Court's jurisdiction.
3. Whether the beneficiary was entitled to the requested corporate information and relief, including a direction concerning the timing of the corporation's sale.

Disposition

other