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PETITION TO REMOVE A TRUSTEE SHOULD HAVE BEEN GRANTED, CRITERIA EXPLAINED (SECOND DEPT). ​

The Second Department, reversing Supreme Court, determined the petition by one of decedent’s daughter, Eckhouse, to remove the other daughter, Taormina, as trustee of the generation skipping transfer (GST) trusts should have been granted. The decision includes a comprehensive discussion of the criteria for removing a trustee:

… [T]he record clearly demonstrates that, in contrast with the high duty of loyalty owed by a fiduciary, Taormina placed her own interest in a greater share of the estate above her fiduciary duty to act in the best interests of the GST trusts and their beneficiaries. Even accepting Taormina’s rather strained protestations that her only goal was to “fund these trusts properly and pay the proper taxes” in accordance with the decedent’s will, as a fiduciary, she was required to pursue those goals in a manner consistent with the protection of the beneficiaries’ interests. Matter of Epstein, 2022 NY Slip Op 00658, Second Dept 2-2-22

 

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NO APPEAL LIES FROM DICTA (SECOND DEPT). MOTHER’S MOTION TO VACATE THE NEGLECT FINDING SHOULD HAVE BEEN GRANTED...