Estate of Schneider v. FinmannEstate of Schneider v. Finmann

Strict privity requirement relaxed in New York: Personal representative of estate may sue estate-planning attorney for negligence

In Estate of Schneider v. Finmann, 2010 N.Y. Slip Op. 05281 (June 17, 2010), the New York Court of Appeals relaxed its doctrine of strict privity, which holds that neither an estate nor its beneficiaries may maintain an action for malpractice against an attorney who advised a decedent regarding his estate plan.

In 2000, Saul Schneider purchased a $21 million life insurance policy. Over several years, he transferred the policy to entities of which he was the principal owner. In 2005, he transferred the policy back to himself, individually. When Saul died in 2006, the insurance policy proceeds were included in his...