The Vermont Statutes Online

Title 14: Decedents Estates and Fiduciary Relations

Chapter 073: Proceedings for Recovery of Property Embezzled and Fraudulently Conveyed

• § 1551. Person suspected of embezzlement, concealing papers, or conveying decedent’s property

  (a) An executor or administrator, heir, legatee, creditor, or other person interested in the estate of a deceased person may file a motion for discovery in the Probate Division of the Superior Court alleging that a person is suspected of having concealed, embezzled, or conveyed any of the deceased’s property, or has possession or knowledge of any deed, conveyance, bond contract, or other writing that contains evidence of, or tends to disclose, the right, title, interest, or claim of the deceased to real or personal estate, or the last will and testament of the deceased.

  (b) The court may subpoena or otherwise order a person to appear before it to be examined under oath upon the matter or to answer interrogatories or requests to produce to be filed with the court. If the person so ordered refuses to appear and submit to examination or to answer interrogatories, the person may be subject to proceedings for civil contempt under 12 V.S.A. § 122. Interrogatories and answers to interrogatories shall be in writing, signed under oath by the party examined, and filed with the court. (Amended 1985, No. 144 (Adj. Sess.), § 71; 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011; 2017, No. 195 (Adj. Sess.), § 8.)

• § 1552. Person entrusted with estate may be compelled to render account

  On motion of an executor or administrator, the court may order a person who is entrusted by an executor or administrator with any part of the estate of the deceased person to appear under oath and render a full accounting of the property. If the person so ordered refuses to appear and render an account, the person may be subject to proceedings for civil contempt under 12 V.S.A. § 122. (Amended 1985, No. 144 (Adj. Sess.), § 72; 2017, No. 195 (Adj. Sess.), § 8.)

• § 1553. Forfeiture by person embezzling before letters issued

  If a person embezzles or converts any of the property of a decedent before the appointment of the executor or administrator, the person shall be liable to the executor or administrator of the estate for double the value of the property embezzled or converted, to be recovered for the benefit of the estate. (Amended 2017, No. 195 (Adj. Sess.), § 8.)

• § 1554. Recovery of estate fraudulently conveyed by deceased

  (a) If the executor or administrator determines there is a deficiency of assets in the estate, the fiduciary may bring an action in the Probate Division of the Superior Court for the benefit of the creditors to recover any property fraudulently conveyed by the deceased in his or her lifetime.

  (b) The court may license the executor or administrator to sell so much of the property fraudulently conveyed as is necessary to make up the deficiency of assets in the estate to pay the debts of the decedent if it appears to the court that:

  (1) there are insufficient assets to pay the debts of the deceased;

  (2) the deceased conveyed property or a right or interest therein:

  (A) with the intent to defraud creditors;

  (B) to avoid a debt or duty; or

  (C) with respect to real estate, in a manner that by law renders the conveyance void as against his or her creditor; and

  (3) the estate attempted to be conveyed would be subject to attachment or execution by a creditor of the deceased in his or her lifetime. (Amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011; 2017, No. 195 (Adj. Sess.), § 8.)

• § 1555. Sale, how conducted

  The license to sell the real estate shall be granted and the sale conducted as provided for the sale of real estate for the payment of the debts of a deceased person. The sale and conveyance so made by the executor or administrator shall be valid and effectual to convey the real estate. (Amended 2017, No. 195 (Adj. Sess.), § 8.)

• § 1556. Repealed. 2017, No. 195 (Adj. Sess.), § 8.

• § 1557. Sale of fraudulently conveyed estate; motion of creditors

  (a) An executor or administrator shall not be bound to make sale of estate, so fraudulently conveyed, under a license from the Probate Division of the Superior Court, nor sue for the estate for the benefit of the creditors unless on motion of creditors of the deceased, nor unless the creditors filing the motion pay that part of the costs and expenses, or give security to the executor or administrator as the court judges equitable.

  (b) An executor or administrator shall not be required to sell fraudulently conveyed property under a license from the Probate Division of the Superior Court, or sue for the fraudulently conveyed property for the benefit of the creditors unless the creditors of the deceased file a motion to do so and comply with any court requirements to pay associated costs and expenses or give security to the executor or administrator. (Amended 1985, No. 144 (Adj. Sess.), § 73; 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011; 2017, No. 195 (Adj. Sess.), § 8.)

• § 1558. Creditor may act

  (a) If there is a deficiency of assets in the estate, any creditor of the estate who obtains a license to do so from the Probate Division of the Superior Court may bring an action in the name of the executor or administrator in the Probate Division to recover any property fraudulently conveyed by the deceased in his or her lifetime. The action shall be for the benefit of the creditors and shall be brought in the same manner as an action by the executor or administrator under section 1554 of this title. A creditor licensed by the court to bring an action under this section may recover any property conveyed by the deceased in his or her lifetime by a fraudulent or void conveyance.

  (b) An action under this section shall not be commenced until the creditor files with the court a bond with sufficient sureties conditioned to indemnify the executor or administrator against the costs of the action.

  (c) A creditor who brings an action under this section shall have a lien upon the judgment recovered by him or her for the costs incurred and any other expenses the court deems equitable. (Amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011; 2017, No. 195 (Adj. Sess.), § 8.)

• § 1559. Repealed. 2017, No. 195 (Adj. Sess.), § 8.