An executor for a Brooklyn brownstone recently called my office. Her father had passed, leaving a home filled with sixty years of memories, art, and collections. The will was clear about who should inherit, but the path forward was not. Her question was one I hear often: how do you honor a lifetime of possessions while fulfilling your legal duty to the estate?
Liquidating a home’s contents is often the most emotionally and logistically difficult part of estate administration. An estate sale can seem straightforward. But it is a fiduciary act with significant responsibilities. It’s not a garage sale—it’s the conversion of personal property into cash for the benefit of creditors and beneficiaries, and every step is subject to scrutiny.
Fiduciary Duty and the Prudent Person Rule
When you are named an executor in a will and formally appointed by the Surrogate’s Court, you take on a fiduciary duty. This is the highest standard of care recognized by law. You must act with complete loyalty and in the best interests of the estate and its beneficiaries, not your own.
This duty directly governs how you manage an estate sale. Under New York’s Estates, Powers and Trusts Law—specifically EPTL § 11-1.1—an executor has the power to sell property. But this isn’t a blank check. The power must be exercised prudently. This means you are expected to secure fair market value for the assets. You cannot sell a valuable painting to a friend for a fraction of its worth or give away family heirlooms that are not specifically bequeathed to you in the will. Doing so is a breach of your fiduciary duty, and beneficiaries could hold you personally liable for the financial loss.
The process begins not with price tags, but with a formal inventory. Before a single item is sold, a responsible executor creates a detailed list of the estate’s tangible personal property. For valuable items—art, antiques, or jewelry—a professional appraisal is a prudent, and often necessary, step. This appraisal serves two purposes—it establishes a baseline value for the sale and provides a documented, good-faith effort to meet your fiduciary obligations.
The DIY Sale vs. Professional Management
With a clear inventory, the next decision is how to conduct the sale. I’ve seen executors handle this in two primary ways: managing it themselves or hiring a professional estate sale company.
A do-it-yourself sale can seem appealing. While you avoid paying a commission—typically 30% to 50% of gross proceeds—you also take on all the work: sorting, pricing, marketing, and managing the sale itself. It is an enormous undertaking. Without market knowledge, you risk underpricing valuable items or overpricing common ones, leaving much of the property unsold.
Hiring a reputable estate sale company outsources that labor. They handle the entire process, using their experience and customer base to sell items efficiently. This is often the more prudent choice, especially for large or complex estates. But your duty as executor does not end with signing a contract. You are still responsible for vetting the company, understanding the terms of the agreement, and ensuring they are bonded and insured. A good company will provide a full accounting of every item sold and the price it fetched.
Accounting and Potential Liabilities
Whether you run the sale yourself or hire professionals, the work isn’t over when the last buyer leaves. Your fiduciary duty requires meticulous record-keeping. Every dollar received must be documented and deposited into a dedicated estate account. These proceeds are part of the estate’s total assets, available to pay the decedent’s final debts, taxes, and administrative expenses before any distribution to beneficiaries.
Beneficiaries have a right to question how you’ve managed the estate’s assets. If they believe property was sold for too little or that proceeds are missing, they can file an objection with the Surrogate’s Court and demand a formal accounting. Without clear records—receipts, bank statements, and a detailed inventory—an executor can find themselves in a difficult and personally expensive legal position.
Premises liability is another concern. Inviting the public into a private home for a sale creates risk. If someone is injured on the property, the estate could face a lawsuit. We always advise executors to confirm that the homeowner’s insurance policy is still in effect and covers such an event, or to secure a separate rider for liability protection.
Stewardship. Ultimately, that is the executor’s role. An estate sale is a tool of that stewardship, a way to responsibly convert physical assets into a liquid legacy. It requires diligence, transparency, and a clear understanding of your legal obligations.
Clarify your duties before placing a single price tag. If you are an executor facing the task of liquidating a New York estate, we can schedule a fiduciary review to outline a legally sound and responsible path forward.
