Legal Question in Wills and Trusts in New York

is this self dealing

My Dad is the executor of My Grandma's estate. The will provides that my Grandmother's home was to be left share and share alike between my Dad and his sister. My Dad asked his sister if she wanted the house.She said no.He indicated that I wanted to purchase her 50% interest in the home. She said no she did not want me buying it(out of jealousy because none of her kids could afford to buy).My Dad listed the house with a realtor.several bids were made on the house by third parties.I beat all of these bids. My Aunt still refuses to sell to me and has accepted a lower offer. My Dad is going to sell to me without her consent. My aunt hired a lawyer who is alleging self dealing on the part of my Dad. My Dad's lawyer says not to worry(he has over 20 years exp with wills/estates). My Dad's lawyer is drawing up the contract to sell to me. My Aunt and her lawyer have been notified of this. The object to the sale, but my Dad's lawyer says it is ok to proceed as it is a legitimate transaction since the house was listed and I beat all bids. My Aunt is probably going to sue my Dad over this. The house is very special and we are not giving it up. Do my Dad's actions represent self dealing? What penalties would one face for self dealing in NY?


Asked on 11/21/04, 3:50 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: is this self dealing

Presuming your Dad can verify that he appropriately and properly listed the house (I hope it was with multiple listing) and the fact your Aunt (not the Executor) attempted to sell it for a lesser amount, this should not be considered self dealing. I hope all of these matters are in writing, as he cannot stop your Aunt from suing. I also trust that your bid was somewhat higher than the bids obtained, not by just a few dollars. While he cannot stop the suit, if it actually takes place, the estate attorney, if he has the proof in writing, can do one of two things: defend the suit and try to have the aunt surcharged from her share of the estate for the extra fees that might be incurred, and/or, ask the Court to confirm the sale to you. Since it appears that, at worst (no fees paid by your aunt), she will be getting more than she was willing to accept, the court should have no problem. Your Dad should be aware that if he were to consider a price less than your aunt felt was fair, he could be considered as self-dealing. The fact you are willing to pay more than the highest bidder should make this OK.

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Answered on 11/23/04, 5:18 pm


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