In re the Estate of Dominguez

143 Misc. 2d 1010, 541 N.Y.S.2d 934, 1989 N.Y. Misc. LEXIS 292
CourtNew York Surrogate's Court
DecidedMay 11, 1989
StatusPublished
Cited by6 cases

This text of 143 Misc. 2d 1010 (In re the Estate of Dominguez) is published on Counsel Stack Legal Research, covering New York Surrogate's Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Estate of Dominguez, 143 Misc. 2d 1010, 541 N.Y.S.2d 934, 1989 N.Y. Misc. LEXIS 292 (N.Y. Super. Ct. 1989).

Opinion

OPINION OF THE COURT

Bernard Bloom, S.

In her petition to compromise a cause of action for wrongful [1011]*1011death and to judicially settle her account, the administratrix requests that the court give effect to the decedent’s surviving spouse’s waiver of her share of the wrongful death proceeds that she may otherwise be entitled to under EPTL 5-4.4. Objections to the attempted waiver or renunciation have been filed by the Commissioner of Social Services who intends to submit a claim against the spouse for public assistance in the form of Aid to Dependent Children, rendered to her and her child since 1982. The Commissioner contends that EPTL 2-1.11, the statute governing renunciations, does not include within its ambit wrongful death proceeds. The validity of the claim against the spouse is not in issue herein.

FACTS

The decedent died on March 16, 1987, intestate, as a result of injuries sustained as a passenger in a motor vehicle accident on March 11, 1987. He remained comatose from the time of the accident until his death. His distributees are a spouse, Evelyn Dominguez, and two infant children, Yoraidly Jennifer Dominguez and Steven Anthony Dominguez. Steven Anthony Dominguez was born of the marriage between the decedent and Evelyn Dominguez. Yoraidly Jennifer Dominguez is a nonmarital child of the decedent, and the administratrix, Rosemary Morales.

Limited letters of administration issued to Rosemary Morales on June 19, 1987. The decedent has no assets other than a cause of action for wrongful death. The administratrix filed a wrongful death and conscious pain and suffering and an arbitration demand against the decedent’s insurer which resulted in a settlement of $50,000 for wrongful death. The petitioner requests amongst other items of relief that the net amount be distributed to the decedent’s two children. Annexed to the petition is a document entitled “Affidavit of Waiver”, dated April 21, 1988, signed by Evelyn Dominguez and two witnesses wherein the spouse expressly waives any claim she may have to the proceeds of the settlement in favor of the two children.

By order dated March 15, 1989, this court approved the settlement, authorized the administratrix to consent to the settlement and directed the payment of $50,000 to the petitioner’s attorneys to be held in escrow. The items of relief which remain to be determined before the account may be settled are allocation of the recovery to wrongful death, the [1012]*1012fixation of attorneys’ fees, fixation of the compensation of the guardian ad litem and the distribution of the balance of the proceeds. It is noted that the final report of the guardian ad litem appointed for the two children makes reference to an order of support of the Family Court entered against the decedent on behalf of the child, Yoraidly Jennifer Dominguez. He requests that the child’s share be credited with any outstanding sums due pursuant to said order. The guardian ad litem’s request is summarily denied since wrongful death proceeds vest in the distributees, not the estate and are, therefore, not subject to the debts of the decedent such as arrears on a support order. (EPTL 5-4.4 [a]; Matter of Rios, 84 Misc 2d 437 [Sur Ct, Kings County 1975].)

The major issue presented is the proper distribution of the balance of the proceeds. Resolution of this issue is dependent upon a determination of the validity of the renunciation filed by the spouse.

law: right to renounce wrongful death proceeds

Initially, it is observed that the Department of Social Services, as a creditor of the beneficiary/distributee, has been held to have standing in an accounting proceeding to contest the validity of a renunciation where the effect of the renunciation would be to frustrate the department’s claim. (Matter of Vizzie, 120 Misc 2d 161 [Sur Ct, Greene County 1983]; Matter of Rogers, 120 Misc 2d 161 [Sur Ct, Greene County 1983].) This is so, despite the absence of an assignment of the beneficiary’s interest to his or her creditor. (Matter of Vizzie, supra.)

Generally, the law in New York is that any "disposition” of property, as the term is defined in EPTL 2-1.11 (a), may be renounced. Additionally, it has been held that those interests which could have been renounced under common law but are not included within the statutory definition of "disposition” may still be renounced. (EPTL 2-1.11 [h]; Matter of Heffner, 132 Misc 2d 361 [Sur Ct, Nassau County 1986]; Matter of Von Ripper, 95 Misc 2d 952 [Sur Ct, NY County 1978].)

Prior to 1980, EPTL 2-1.11 provided that only dispositions "created under a will or trust agreement * * * created by the exercise of a power of appointment, [or] a distributive share under 4-1.1” could be renounced. (EPTL 2-1.11 [a] [1].) Since the statute listed the types of interests, it was believed that only those interests specifically mentioned could be renounced. (Matter of De Domenico, 100 Misc 2d 446 [Sur Ct, Nassau County 1979] [renunciation of Totten trust accounts not per[1013]*1013missible under EPTL 2-1.11].) In 1980, EPTL 2-1.11 (a) (1) was amended on the recommendation of the Law Revision Commission that the definition of the term "disposition” be expanded to include "all types of 'interests in property’ ”, and thereby eliminate the restrictiveness of the then existing statute. (1980 Report of NY Law Rev Commn, 1980 McKinney’s Session Laws of NY, 1647, 1648.) Effective June 26, 1980, the types of interests which could be renounced include, "without limitation”, Totten trust accounts, life insurance, annuities, employee benefit plans, and any other disposition or transfer created by any testamentary or nontestamentary instrument or by operation of law. The reason for expanding the list of renounceable interests was the recognition that renunciations serve as an invaluable post mortem estate planning device for tax and creditor avoidance. (1980 Report of NY Law Rev Commn, op. cit., 1647.) The policy reason for enacting the renunciation statutes is based upon the concept that no one should be forced to accept an inheritance or a gift, whether the inheritance or gift comes about by will, inter vivos gift, or operation of a statute. (1964 Third Report of Temporary Commn on Estates, Legis Doc No. 19, at 240, 261; Albany Hosp. v Albany Guardian Socy., 214 NY 435 [1915]; Burritt v Silliman, 13 NY 93 [1855].)

The only reported case which considered whether EPTL 2-1.11 applied to a wrongful death recovery predated the 1980 amendment to the statute. In Matter of Summrall (93 Misc 2d 420 [Sur Ct, Bronx County 1978]), the surviving spouse of the decedent sought to renounce her interest in the proceeds of a wrongful death action in favor of her two children. The attempted renunciation was filed more than eight years after the decedent’s death. Citation in the accounting proceeding issued to the Department of Social Services, a creditor of the spouse, who did not appear in the proceeding.

The court concluded that the renunciation statutes, EPTL 2-1.11 as it then existed, and the predecessor statute, EPTL 4-1.3, did not apply to a wrongful death recovery. Its conclusion was premised upon the fact that a wrongful death recovery could not fit into the statutory definition of the term "disposition” which limited the scope of the statute to distributions created under a will, trust agreement, intestacy or the exercise of a power of appointment.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

DeLuca v. Gallo
287 A.D.2d 222 (Appellate Division of the Supreme Court of New York, 2001)
Larson v. Cabrini Medical Center
175 Misc. 2d 573 (New York Supreme Court, 1998)
Quesnel v. Town of Middlebury
706 A.2d 436 (Supreme Court of Vermont, 1997)
Molloy v. Bane
214 A.D.2d 171 (Appellate Division of the Supreme Court of New York, 1995)
United States v. Comparato
850 F. Supp. 153 (E.D. New York, 1993)
In re the Estate of Gates
189 A.D.2d 427 (Appellate Division of the Supreme Court of New York, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
143 Misc. 2d 1010, 541 N.Y.S.2d 934, 1989 N.Y. Misc. LEXIS 292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-dominguez-nysurct-1989.