To Seek a Court’s Advice and Direction, or Not to Seek, That is the QuestionTo Seek a Court’s Advice and Direction, or Not to Seek, That is the Question

Fiduciaries generally have broad powers to administer and manage a trust or estate and are typically compensated for their service. But what happens when a fiduciary is uncertain about how to proceed and is reluctant to make a decision out of fear that any wrong move might spur litigation? The fiduciary’s, or its attorney’s, first instinct might be to seek advice and direction from a court. After all, there’s no better assurance that the fiduciary has complied with its duties than a court’s imprimatur.

But while the desire to obtain authorization from a court is certainly understandable—and if granted, it will give the fiduciary the sought-after peace of mind—it might not be attainable in states, like New York, that want fiduciaries to ma...