N.Y. Real Property Law § 268: Disaffirmance of fraudulent act by executor and others

§ 268. Disaffirmance of fraudulent act by executor and others. An

executor, administrator, receiver, assignee or other trustee, may, for

the benefit of creditors, or of others interested in real property held

in trust, disaffirm, treat as void and resist any act done or transfer

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

himself, interested in such estate or property; and a person who

fraudulently receives, takes, or in any manner interferes with the real

property of a deceased person, or an insolvent corporation, association,

partnership, or individual, is liable to such executor, administrator,

receiver or other trustee for the same, 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 or demand exceeding one

hundred dollars against such deceased, may, for the benefit of creditors

or others interested in the real property of such deceased, disaffirm,

treat as void, and resist any act done or conveyance, transfer or

agreement made by such deceased in fraud of the rights of any creditor,

including himself, and may maintain an action to set aside such act,

conveyance, transfer or agreement, without having first obtained a

judgment on such claim or demand; but the same, if disputed, may be

established on the trial. The judgment in such action may provide for

the sale of the premises or property involved, when a conveyance or

transfer thereof is set aside, and that the proceeds thereof be brought

into court or paid into the proper surrogate's court to be administered

according to law.