A reverse discovery proceeding under Surrogate’s Court Procedure Act (SCPA) § 2105 is a legal mechanism allowing a person in possession of property to seek a determination that the decedent’s estate has no rightful interest in it.
This proceeding is the opposite of a SCPA § 2103 discovery proceeding, where an estate fiduciary attempts to recover assets allegedly belonging to the estate.
Purpose of a Reverse Discovery (SCPA § 2105) Proceeding
- It provides a legal avenue for a person in possession of disputed property to proactively ask the Surrogate’s Court to determine ownership.
- The objective is to obtain a judicial ruling confirming that the property does not belong to the estate, thereby preventing further claims by the estate’s fiduciary.
Common Situations for a Reverse Discovery Proceeding
- Joint Bank Accounts or Totten Trusts – A named beneficiary of a payable-on-death (POD) account or joint account may file under SCPA § 2105 to confirm their ownership when an estate fiduciary challenges the designation.
- Lifetime Gifts – If the decedent gave property (e.g., real estate, valuable personal property) to someone before their death, and the fiduciary disputes the validity of the gift, the recipient may file an SCPA § 2105 petition. (Note that the Decedent would have given the property to the recipient and the recipient would dispute it because the fiduciary refused to give it to the recipient).
- Inter Vivos Trust Assets – If an estate fiduciary claims that certain assets belong in the probate estate rather than a trust, the trustee or beneficiary may use § 2105 to have the court rule in their favor.
- Stock, Bonds, or Other Investments – A beneficiary or co-owner of financial assets may seek a ruling that the assets do not belong to the estate.
Procedure to commence a Reverse Discovery Proceeding Pursuant to SCPA § 2105
- The person in possession of the disputed property (the petitioner) initiates the proceeding by filing a petition with Surrogate’s Court.
- The estate’s fiduciary (executor, administrator) and other interested parties are notified and given an opportunity to respond.
- The court may hold a hearing, review evidence, and determine whether the asset belongs to the petitioner or the estate.
- If the court rules in favor of the petitioner, the fiduciary is barred from pursuing further claims to the property.
Case Law on Reverse Discovery Proceedings (SCPA § 2105)
Several cases illustrate how New York courts have handled reverse discovery proceedings under SCPA § 2105:
1. Matter of Pizzarro, 64 Misc. 3d 1212(A) (Sur. Ct. Kings County 2019)
- A named beneficiary of a Totten trust sought a ruling under SCPA § 2105 after the estate’s fiduciary attempted to claim the account as an estate asset.
- The court ruled in favor of the petitioner, holding that under Banking Law § 675, the named beneficiary was presumed to be the rightful owner absent clear and convincing evidence to the contrary.
2. Matter of Rella, 68 Misc. 3d 1207(A) (Sur. Ct. Westchester County 2020)
- The decedent’s longtime caregiver petitioned under SCPA § 2105 to confirm her ownership of valuable jewelry, which she claimed was a lifetime gift.
- The court found that the fiduciary failed to prove the property was part of the estate, as the petitioner provided sufficient evidence of donative intent, delivery, and acceptance.
3. Matter of Camarda, 63 A.D.3d 1182 (2d Dep’t 2009)
- A reverse discovery proceeding arose when a fiduciary challenged a joint bank account held with the decedent.
- The appellate court reaffirmed that the presumption of joint ownership under Banking Law § 675 could only be rebutted with clear and convincing evidence of fraud, undue influence, or lack of intent to create survivorship rights.
4. Matter of Mahoney, 5 A.D.3d 493 (2d Dep’t 2004)
- The court addressed whether stock certificates belonged to the petitioner or the decedent’s estate.
- The decision emphasized that documentary evidence, including transfer records and written correspondence, played a crucial role in confirming the petitioner’s ownership.
Key Differences Between SCPA §§ 2103 and 2105 (Reverse Discovery Proceeding)
| SCPA 2103 (Traditional Discovery Proceeding) | SCPA 2105 (Reverse Discovery Proceeding) |
| Initiated by the estate fiduciary | Initiated by the party in possession of the property |
| Used to recover assets allegedly belonging to the estate | Used to confirm that an asset does not belong to the estate |
| Burden is on the fiduciary to prove that the estate has an interest | Burden is on the petitioner to show they are the rightful owner |
Practical Considerations
- SCPA § 2105 is often used as a defensive tool when an estate fiduciary informally threatens to bring a discovery proceeding.
- Filing under § 2105 can provide clarity and finality, avoiding prolonged disputes over ownership.
- The proceeding may require documentary evidence, such as bank records, title documents, or written proof of a lifetime gift.
Possible Outcomes in an SCPA § 2105 Reverse Discovery Proceeding
- If the petitioner succeeds, the property is confirmed as theirs, and the estate’s fiduciary is barred from making further claims.
- If the estate prevails, the court may rule that the asset belongs to the estate, requiring the petitioner to turn it over.
Would you like assistance drafting a Reverse Discovery Proceeding Pursuant to SCPA § 2105 under SCPA § 2105 or preparing a response to a fiduciary’s claim? Contact us to learn more.
For more information, please contact NYC Probate Litigation, Guardianship, Probate, and Estate Planning attorney Regina Kiperman:
Phone: 917-261-4514
Fax: 929-556-2089
Email: rkiperman@rklawny.com
Or visit her at:
40 Wall Street
Suite 2508
New York, NY 10005
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