In re the Estate of Kiejliches
740 N.Y.S.2d 85, 292 A.D.2d 530, 2002 N.Y. App. Div. LEXIS 3010 (2002)
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Rule of Law:
A court may issue a preliminary injunction to preserve potential estate assets by restraining a surviving joint tenant, who is under indictment for murdering the decedent, from accessing or transferring jointly held property pending resolution of the criminal charges.
Facts:
- Elena Kiejliches and her husband, Boris Kiejliches, owned a residence in Staten Island as joint tenants with a right of survivorship.
- The couple also held a joint investment account at Salomon Smith Barney worth approximately $1,000,000 at the time of Boris's death.
- In late March 2000, Boris Kiejliches disappeared from his residence.
- On April 25, 2000, Boris's body was discovered in a barrel that washed ashore.
- On May 12, 2000, a Richmond County grand jury indicted Elena Kiejliches for the murder of her husband.
Procedural Posture:
- Following Boris Kiejliches's death, both his widow, Elena Kiejliches, and his adult son petitioned the Surrogate's Court, Richmond County, for letters of administration.
- The Surrogate's Court appointed the Public Administrator as the fiduciary of the estate.
- The Public Administrator moved in the Surrogate's Court for a preliminary injunction to restrain Elena from accessing the joint bank account and dealing with the joint residence.
- Elena Kiejliches filed a cross-motion for permission to withdraw $500,000 from the joint account.
- The Surrogate's Court granted the Public Administrator's motion for an injunction and denied Elena's cross-motion.
- Elena Kiejliches (appellant) appealed the Surrogate's Court order to the Supreme Court, Appellate Division.
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Issue:
Does a Surrogate's Court have the authority to issue a preliminary injunction preventing a surviving joint tenant, who is under indictment for murdering the other joint tenant, from accessing jointly held assets until the criminal charges are resolved?
Opinions:
Majority - Per Curiam (Ritter, J.P., S. Miller, Krausman and Goldstein, JJ., concur)
Yes. A court has the authority to issue a preliminary injunction to restrain access to jointly held assets pending the resolution of a murder indictment against the surviving joint tenant. The Surrogate's Court is empowered by statute to determine a decedent's interest in property and may grant injunctive relief to preserve potential estate assets. For the joint bank account, the injunction was proper for two reasons: 1) the Public Administrator raised a triable issue of fact by alleging it was a 'convenience account' belonging entirely to the decedent, and 2) under EPTL 4-1.6, a murder conviction would cause Elena Kiejliches to forfeit any funds not contributed by her. For the real property, while she would retain her own vested interest, a conviction would cause her to forfeit her right of survivorship under the common law 'slayer rule' established in Riggs v. Palmer. Therefore, restraining her from transferring or encumbering the assets was a proper exercise of the court's authority to protect the potential interests of the estate and the minor children residing in the home.
Analysis:
This decision reaffirms the broad equitable power of probate courts to preserve the status quo when a beneficiary's rights are in question due to heinous acts. It clarifies that a court does not need to await a final criminal conviction to freeze assets; a grand jury indictment provides a sufficient basis to issue a preliminary injunction. The ruling effectively applies both New York's statutory 'slayer rule' for joint bank accounts and the common law rule for real property, demonstrating how courts can use procedural tools like injunctions to prevent an accused party from profiting from their alleged crime or dissipating assets before a final adjudication.
