Surrogate Nora Anderson
Decedent’s granddaughter, Ann, objected to an accounting by co-trustee Bank of America (BoA), arguing it breached its fiduciary duty to her by permitting invasion of trust principal for her father’s benefit. BoA cross-moved for summary judgment dismissing her objections. Ann alleged the invasions of principal of the trust violated BoA’s own policies and the trust’s terms. The court noted the fact funds were expended for Ann’s mother’s health care, among other things, was well within the parameters of decedent’s intent to provide for his son’s care and support. It also noted as Ann provided no case law supporting summary relief before establishing damages, her motion was premature, and denied. The court found Ann failed to offer any evidence BoA exercised bad faith or acted in derogation of decedent’s intent. BoA asserted documentation showed that typical invasions of principal were for expenditures incurred towards the son’s refinancing of his home, medical expenses for him, his spouse and Ann, including her rent. Trust officers averred distributions were made with knowledge the son had no other source of income and was supporting both women. Thus, BoA’s cross-motion was denied as questions of fact regarding its discretion and invasions of trust principal existed.
