The Surrogate’s Court Procedure Act (SCPA) Section 103 entitled “Definitions” provides a definition for “Fiduciary” at paragraph 21. The term includes an expansive list of titles including administrator, executor, guardian, and testamentary trustee. Someone acting in a fiduciary capacity to another generally means that such person owes certain legal responsibilities to the party for whom they are acting or based upon the parties’ relationship. Someone who is a Guardian for an incapacitated person in an Article 81 Guardianship, as well as an agent appointed under a Durable Power of Attorney stands in a fiduciary relationship to the person for whom they have accepted responsibility to perform certain tasks or acts.
Responsibilities flow from the authority given to a fiduciary either from the document which defines the manner or scope of the powers and also from the various statutes and rules and guidelines a fiduciary must follow. For example, an Article 81 Guardian typically derives the extent of authority from the Order and Judgment appointing the Guardian. Also, Article 81 of the Mental Hygiene Law (MHL) sets out certain powers that a Guardian may possess. MHL Section 81.20 lists “Duties of Guardian” while section 81.21 sets forth “Powers of guardian; property management” and section 81.22 provides for “Powers of guardian; personal needs.” Similarly, with respect to the estate laws, Estates, Powers and Trusts Law Section 11-1.1 provides an expansive list of “Fiduciaries’ powers.”
Thus, an executor or administrator in settling an estate needs to be aware of their responsibilities. Another area which is always a topic of discussion is the fees that can be paid to a fiduciary for acting in such capacity. These fees, called commissions, are meant to compensate someone for accepting and performing the job as trustee, guardian, administrator or executor. The SCPA contains a number of sections which set out the manner by which commissions are allowed and computed. For instance, SCPA Section 2307 sets forth the commissions to be paid to fiduciaries which are not trustees, while SCPA 2309 gives commissions for trustees for trusts created after August 31, 1956. MHL Section 81.28 gives information as to “compensation of guardian.”