N.Y. Estates, Powers & Trusts Law § 13-3.6: Disaffirmance of fraudulent acts by personal representative and

§ 13-3.6 Disaffirmance of fraudulent acts by personal representative and

others

A fiduciary may, for the benefit of creditors or others interested in

property held in trust, treat as void any act done, or disposition or

agreement made in fraud of the rights of any creditor, including

himself, interested in such property, and a person who fraudulently

receives, takes or in any manner interferes with the property of a

deceased or insolvent person is liable to such fiduciary or a receiver

for such property or the value thereof, and for all damages caused by

such act to the trust estate. A creditor of a deceased insolvent

debtor, having a claim against the estate of such debtor exceeding in

amount the sum of one hundred dollars may, without obtaining a judgment

on such claim, in like manner, for the benefit of himself and other

creditors interested in such property, treat as void any act done or

disposition or agreement made in fraud of creditors or maintain an

action to set aside such act, disposition or agreement. Such claim, if

disputed, may be established in such action. The judgment in such

action may provide for the sale of the property involved, when a

disposition thereof is set aside, and for the payment of the proceeds

thereof into the appropriate surrogate's court to be administered

according to law.