New York Probate and Estate Administration Lawyer Blog
Sometimes more than one will is found after a person dies. Although the most recent valid will usually controls how the estate is distributed, there are situations where everyone involved agrees that an earlier will should be used instead. In Matter of Hayes, the Nassau County Surrogate’s Court considered whether an earlier will could be admitted to probate when all interested parties agreed and doing so would better carry out the decedent’s estate plan.
Background
Arthur M. Hayes died in 2009, leaving behind his wife and their three sons. Because his wife suffered from dementia, the Surrogate’s Court appointed a guardian ad litem, an attorney whose job was to protect her interests during the probate proceeding. The decedent’s sons initially asked the court to admit a will that Mr. Hayes signed in 1990. Later, they changed course and asked the court to admit an earlier will that he had signed in 1982 instead.
The difference between the two wills had a major financial impact. Mr. Hayes’s largest asset was nearly 96,600 shares of Exxon Mobil stock worth more than $7 million. Under the 1990 will, most of that stock would pass directly to the couple’s sons. As a result, the surviving spouse would receive much less from the estate, and the estate would owe more than $1.5 million in federal estate taxes. Under the 1982 will, however, the surviving spouse would receive a much larger share of the estate through a trust. That plan would also eliminate federal estate taxes because it made full use of the marital deduction.
After reviewing both wills, the guardian ad litem concluded that admitting the 1982 will would better protect his client’s interests and asked the court for permission to consent to probate of the earlier will.
Issue
May a Surrogate’s Court admit an earlier will to probate, even though a later will exists, when everyone with an interest in the estate agrees?
Holding
Yes. The Surrogate’s Court authorized the guardian ad litem to consent to probate of the 1982 will and permitted that earlier will to be admitted to probate.
Discussion
The court explained that New York courts have, in limited situations, allowed an earlier will to be admitted to probate when everyone with an interest in the estate agrees and doing so avoids unnecessary litigation. In this case, the guardian ad litem carefully compared the financial consequences of each will.
If the 1990 will were admitted to probate, the surviving spouse would inherit much less, and the estate would owe more than $1.5 million in federal estate taxes.
Under the 1982 will, the surviving spouse would receive substantially more financial protection, and the estate would avoid federal estate taxes altogether.
The court also found it significant that Mr. Hayes had been a tax attorney. The evidence showed that minimizing estate taxes had long been an important part of his estate planning. Over the years, the dramatic increase in the value of his Exxon Mobil stock had changed how the 1990 plan would work, creating a large tax bill that likely had not been anticipated when the will was signed.
The court concluded that admitting the 1982 will would better carry out the decedent’s overall estate planning goals while also protecting the surviving spouse’s financial interests.
The decision also addressed the guardian ad litem’s request for legal fees. After reviewing the work performed and the benefit provided to the estate, the court approved payment of $8,250 for the guardian ad litem’s services.
Conclusion
Matter of Hayes shows that, in limited circumstances, a New York Surrogate’s Court may allow an earlier will to be admitted to probate even though a later will exists. When everyone with an interest in the estate agrees, and the earlier will better carries out the decedent’s estate plan while protecting those affected by the decision, the court may approve that result. If you have questions about multiple wills, probate disputes, or estate administration, an experienced Nassau County probate lawyer can explain your rights and help guide you through the probate process.