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Keywords

trust

Related Cases

Devine v. Cote, 109 N.H. 235, 248 A.2d 77

Facts

Mary Bouchard established a testamentary trust for her son, Leo E. Bouchard, who has been a mentally incompetent veteran since World War I. The trust was created to provide for Leo's support, maintenance, and education while he is unable to manage his affairs. At the time the successor trustee was appointed in 1951, the trust fund was approximately $7,700, which has since grown to $20,000. Leo also has a guardianship fund of $60,000 and receives monthly veteran's benefits of $350. The trustee sought court instructions due to uncertainty about how to balance the support for Leo with the interests of the remaindermen under the trust.

The testatrix bequeathed the residue of her estate in trust for her son ‘* * * for his support, maintenance and education while the said Leo E. Bouchard is unable to manage his affairs, and when he is able to take care of his affairs then this bequest is to vest in him absolutely and in fee simple to him and his heirs forever; provided nevertheless that if the said Leo E. Bouchard should die before the termination of this trust, without leaving issue surviving him, then this bequest should go to my said sister, Julie Anna Cote nee Tremblay, to her and her heirs forever.’

Issue

Whether the trustee has the duty to support Leo E. Bouchard from the trust fund despite the availability of other resources, including a guardianship fund.

Rule

The trustee has a primary duty to support the beneficiary and a secondary duty to consider the interests of the residuary beneficiaries when determining distributions from the trust fund.

Analysis

The court analyzed the trust's purpose and the available resources for Leo's support. It noted that while the trustee's primary duty is to provide for Leo's needs, the existence of the guardianship fund and other resources must also be considered. The court emphasized that the testatrix likely intended the trust to serve as supplemental support for Leo, given his mental condition and the size of the trust fund. Therefore, the trustee could properly consider Leo's other resources when determining the amount to distribute from the trust.

Conclusion

The court remanded the case, allowing the trustee to consider both the trust fund and the guardianship fund in providing for Leo's support.

Who won?

The prevailing party is the successor testamentary trustee, as the court ruled in favor of allowing the trustee to consider the guardianship fund when determining distributions from the trust.

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Keywords

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In re Trust ex rel. Gurney, 152 A.D.3d 1122, 59 N.Y.S.3d 587, 2017 N.Y. Slip Op. 05902

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