Gershaw v. Gershfield

751 N.E.2d 424, 52 Mass. App. Ct. 81
CourtMassachusetts Appeals Court
DecidedJuly 13, 2001
DocketNo. 98-P-1410
StatusPublished
Cited by7 cases

This text of 751 N.E.2d 424 (Gershaw v. Gershfield) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gershaw v. Gershfield, 751 N.E.2d 424, 52 Mass. App. Ct. 81 (Mass. Ct. App. 2001).

Opinion

Duffly, J.

Burton C. Gershfield appeals from a decree entered in the Probate and Family Court on a complaint for instructions brought by Scott O. Gershaw, as trustee of the Samuel Gersh-field Family Trust of 1987 (trust), and from the dismissal of his counterclaim. We decide that the judge’s modification of the trust terms in several material respects constituted error of law and that the counterclaim should not have been summarily dismissed. Accordingly, we vacate the judgment and remand for further hearing and entry of orders consistent with this opinion.

The complaint for instructions was filed in the following context. Samuel Gershfield died on January 11, 1996, his wife having predeceased him. On Samuel’s death the bulk of his estate was to fund the trust, the assets of which were to be divided equally between two of his children, Cynthia Title-[83]*83baum2 and Burton C. Gershfield. Cynthia’s share was to be distributed to her free and clear of trust, while Burton’s share was to remain in trust to provide support and housing for his lifetime. In a subsequent amendment of the trust, Burton’s children Ace and Julie3 were included as beneficiaries of that portion of the trust initially set aside solely for Burton’s benefit, their interests to terminate as each reached age twenty-five. As alleged in the complaint, the trustees4 determined that the trust share that had been set aside for Burton and his children had insufficient resources to make all the distributions contemplated by Samuel. The trustees therefore sought, among other things,5 instruction with respect to the priority of distributions among the three named trust beneficiaries, stating that “the cotrustees . . . established the following priorities for distribution of that portion of the Trust,” as follows:

“1. Mr. Burton Gershfield’s shelter;
2. Medical needs of Mr. Burton Gershfield’s children;
3. Support of Mr. Burton Gershfield’s minor children;
[84]*844. Education of Mr. Burton Gershfield’s children;
5. Mr. Burton Gershfield’s medical needs;
6. Welfare of Mr. Burton Gershfield’s children; and
7. Mr. Burton Gershfield’s welfare.”

At trial, the trustee argued that the claims of the beneficiaries should be treated equally; that Burton’s share should be divided into three equal trusts, each for the individual benefit of Burton, Ace, and Julie; and that final distributions should be made and the trust terminated.

Following trial, the probate judge issued findings and a “decree,” more appropriately termed a judgment.6 In addition to dismissing Burton’s counterclaim, the judgment provides that the trust share for the benefit of Burton and his children bear ninety per cent of the $47,000 allowed for Gershaw’s services as cotrustee, plus ninety per cent of expenses; that $23,500 be paid out of Burton’s share to Cynthia and Ronald for support arrears found to be owed them by Burton; and that the trust premises, located at 126 Nichols Street (premises), be sold “forthwith.”7 The judgment further provides that Cynthia’s share shall be determined “as of the date of the death of . . . Samuel Gershfield, plus earnings”; that “[f]or the purposes of calculating beneficial interests, the value of [the premises] and all costs of maintenance] . . . shall be allocated to . . . [Burton’s] share of the trust . . . [and that] [valuation of this distribution shall be determined as of the time of the distributionf].” The judgment also specifies that, after payment of fees and expenses of sale and as provided in the judgment, the remaining funds in Burton’s share were to be allocated [85]*85equally between Burton, Ace, and Julie, with one-third set aside for Burton’s housing needs until exhausted and the remaining two-thirds divided equally between Ace and Julie for their college education and related costs. Gershaw was removed as trustee, but not due to any “impropriety or failure to perform his duties,” and Ronald was to remain as sole trustee.8

Burton’s claims on appeal are that (1) the probate judge abused his discretion and committed error of law; (2) certain of the assets of his father’s estate were distributed to Cynthia that should have been included in the trust corpus; (3) the fiduciaries engaged in fraud and misrepresentation; (4) the probate judge’s denial of Burton’s request to have a guardian ad litem appointed to represent his interests at trial was an abuse of discretion; and (5) the trial judge’s recusal, following the entry of the decree, on the basis of the appearance of conflict of interest, raises due process concerns.9

At the outset, we conclude that there is no basis for Burton’s claim that the trial judge’s failure earlier to recognize a possible conflict of interest warrants a conclusion that the judge was not impartial. The judge stated that he was unaware of the potential conflict until he had rendered his decision. See Miles v. Caples, 362 Mass. 107, 111 (1972).

We proceed to a discussion of the remaining issues, summarizing certain background facts as set forth in the trial judge’s findings, supplemented where appropriate by undisputed facts in the record.

Burton’s relationship with his father was, for most of his life, not a close one. In 1965, Burton moved to California where, after initial modest success in the film industry, Burton fell on hard times. Cynthia remained in Massachusetts and married [86]*86Ronald Titlebaum. As Burton’s financial and personal life grew increasingly unstable, his family provided financial assistance, and Cynthia and Ronald provided periodic care and support to Ace and Julie. In January, 1980, when Ace was three months old and Julie approximately one year old, Burton and Anya sent the children from California to stay with the Titlebaums in Massachusetts. Ace remained one year and Julie eight months before returning to their parents. The children subsequently stayed with the Titlebaums for varying periods of time between 1981 and 1983; following that, they were in foster care. As a result of Burton’s problems he also lived with Cynthia and Ronald for approximately a year and one-half during the mid-1980’s.

In August, 1993, Ace came to live with the Titlebaums in what was to be a permanent arrangement. Julie also lived with the Titlebaums for six or seven months during 1994, but returned to live with her foster family. At the time of trial, she was attending college in California and living in her own apartment. The financial support provided to Ace and Julie by the Titlebaums was, for the most part, without contribution from Burton or Anya.

Samuel Gershfield’s will, executed on July 22, 1987, provided that, except for furniture, automobiles, and other items of domestic use which were to be divided between Cynthia and Burton, his estate was to be held and administered pursuant to the terms of the trust executed that same date. In pertinent part, after setting aside $5,000 in trust for each of Samuel’s grandchildren (Ace and Julie, initially excluded, were added by later amendment), the trust assets were to be divided equally between Cynthia and Burton.

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Bluebook (online)
751 N.E.2d 424, 52 Mass. App. Ct. 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gershaw-v-gershfield-massappct-2001.