A New York court has ruled that certain real estate is classified as "heirs property" under state law, impacting how the property can be partitioned. The decision affects two families connected through a trust, as they navigate a dispute over the ownership and management of the property.
The ruling, issued on April 15, 2026, by Judge Martin D. Auffredou of the Warren County Supreme Court, addresses the classification of the property in question and the legal implications of that classification. The case involves the Descendant's Separate Trusts, which were created under the Ruecker Family Irrevocable Trust established on August 29, 2014. The decision is significant as it clarifies the application of the Uniform Partition of Heirs Property Act (RPAPL 993) in the context of family trusts.
Background
The case, indexed as EF2026-75496, centers around a legal dispute between two separate trusts formed for the benefit of the Ruecker family. The plaintiff's trust is for Tyson E. Ruecker's family, while the defendant's trust serves Garrett J. Ruecker's family. The property at the heart of the dispute consists of three parcels located in the Town of Queensbury, New York, commonly referred to as 11, 13, and 14 Gunn Lane.
The property was originally owned by Harry Ruecker, who conveyed it to his sons, Tyson and Garrett, in 2014. They acted as cotrustees of the Ruecker Trust. In 2023, the brothers divided the property into 50% interests, each creating separate trusts for their families. However, following their resignations as cotrustees of each other's trusts, the brothers held legal title to the property as tenants in common, leading to the current dispute.
The dispute arose when the plaintiff sought to partition the property by sale, while the defendant argued that the property qualifies as heirs property under RPAPL 993. This classification is crucial because it dictates how the property can be divided among co-owners, especially when those owners are related.
The Ruling
The court ruled that the property in question is indeed classified as heirs property according to the definition laid out in RPAPL 993. The law defines heirs property as real property held in tenancy in common that meets specific criteria, including the absence of a binding agreement among co-tenants and the requirement that co-tenants acquired their title from a relative.
Judge Auffredou stated, “The trustees here, being brothers, are unquestionably relatives, and each took legal title from their father, also clearly their relative.” This ruling emphasizes that the legal title held by the brothers, despite being in trust, is still derived from their familial relationship.
The court rejected the plaintiff's argument that trusts cannot have relatives, stating, “The plain language of the relevant statutes leads to this result and is supported by the holdings of other courts.” This decision aligns with previous rulings in New York that have recognized the rights of family members in similar situations.
Impact
This ruling has significant implications for how family trusts are managed and how properties held in such trusts can be partitioned. By classifying the property as heirs property, the court ensures that the protections afforded by RPAPL 993 apply, which are designed to prevent the division of family property from being exploited by outside investors.
The decision reinforces the notion that trusts created for familial benefit do not exempt the property from being classified as heirs property. This could affect future cases involving family trusts, as it sets a precedent that trustees who are relatives can still be considered as having acquired property from a relative, thus qualifying the property for heirs property protections.
What's Next
The court has ordered a partition settlement conference to address the findings and procedures required under RPAPL 993. It remains to be seen if either party will appeal the decision, but as it stands, the ruling clarifies the legal landscape for similar disputes involving family trusts in New York.