Equitable conversion in New York is the doctrine that, when a will contains an unqualified, peremptory direction that real property be sold, equity treats that real property as converted into personalty (money) from the moment of the testator’s death.
The practical effects are that beneficiaries take interests in the sale proceeds (not the real property), the executor has an imperative duty to sell, and beneficiary-level liens generally do not attach to the real property itself because the beneficiary’s interest is treated as an interest in proceeds rather than an interest in land.
This result depends on a mandatory direction to sell — mere language granting the executor a "power to sell" usually will not effect conversion and may leave title in devisees subject to their liens.
Equitable conversion does not, however, wipe out the decedent’s mortgages, estate debts, or tax liens, which remain enforceable against the property or its proceeds.
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