Surrogate Robert Gigante
In this contested proceeding regarding a trust created for the initial benefit of the grantor, and disposition of assets at the grantor’ death, Weber sought to restrain the trustees from selling or disposing of any trust assets. Weber was concerned about property in Staten Island for which the trustees entered into a contract of sale. She claimed she previously offered to receive all of the trust’s properties, in kind, at their appraised values, noting such in-kind distribution would benefit the trust. Weber alleged the trustees’ rejection of her offers constituted bad faith. Trustees argued they exercised good faith in considering, but denying, Weber’s offers noting she offered to purchase two of the trust’s four properties at their alternate date of death, not fair market value. The court noted both parties agreed the trustees were under no obligation or requirement to distribute property in kind to any beneficiary. Also, it found trustees based their rejection of the in-kind proposal on factors including that such a distribution may be greater than the total share due to Weber, and the trust would have to recoup funds from Weber thereafter. The court rejected Weber’s claims of bad faith, denying her motion entirely.