In re the Estate of Cooper

76 Misc. 2d 166, 349 N.Y.S.2d 613, 1973 N.Y. Misc. LEXIS 1435
New York Surrogate's Court·Decided November 21, 1973·Published·Cited by 6 cases

Opinion

Michael A. Telesca, J.

This proceeding was commenced by petitioner Ruth A. Popp by petition praying for a decree determining the construction .and effect of the trust contained in the last will and testament of Beatrice C. Cooper, deceased.

Decedent died on July 31, 1972, leaving a last will and testament dated April 5, 1972 which was duly admitted to probate by the Surrogate’s Court of the County of Monroe on September 28, 1972. Letters testamentary and letters of trusteeship were duly issued to Thomas A. McDermott on September 28, 1972, and McDermott has been and is now acting as executor of the estate and as trustee.

Paragraph second of the last will and testament provides as follows: “second: All the rest, residue and remainder of my property of whatsoever name, nature or description and wheresoever the .same may be situate at the time of my death, whether real or personal property, I give, devise and bequeath to Thomas A. McDermott, in trust, to invest and reinvest the same and collect the income therefrom, and if my sister Ruth A. Popp, shall survive me, I direct my trustee to pay to my sister ■at least semi-annually during her lifetime or apply to her use and benefit so much of the net income therefrom, and in addition, thereto, so much of the principal thereof as my .trustee, in his absolute discretion, shall deem necessary or advisable, after considering all other resources which my sister shall have, for her support, maintenance, comfort and welfare.” The remain[167]*167der of the corpus of the trust is to he divided equally between Evelyn Dunlap and Lorraine Seidel, upon the death of the petitioner. Neither of the residuary legatees is related to decedent.

Petitioner is the sister of the decedent, and is domiciled at the Hill Haven Nursing Home, Webster, New York. Petitioner is 75 years old and in poor health. Her sole income is a monthly pension check in the amount of $36.90 and a monthly Social Security check in the .amount of $166.30. From this amount, petitioner retained the sum of $24.50 monthly and paid the balance to the nursing home in part payment for her care. The balance of the amount due to the nursing home was paid by the Monroe County Department of Social Services under the Medicaid program.

Petitioner received a notice of discontinuance of medical assistance as of July 9, 1973, from the Monroe County Department of Social Services. The basis for the discontinuance was that Mrs. Popp has a trust fund amounting to approximately $20,000.00, which is an available asset to be used for medical care”. As of July 30, 1973, the amount due to the nursing home by reason of the discontinuance of assistance was $1,082.24.

Petitioner’s attorney advised the trustee, of the financial situation of petitioner, but the trustee has refused to make any payments from the trust for petitioner’s care without the authorization of this court.

It is the position of the petitioner in this proceeding that the trustee is obligated, under the terms of the trust created by the will of the decedent, to pay from the income and from the corpus of the trust such sums as are necessary to pay for the support, maintenance, comfort and welfare of the petitioner. The executor and trustee and the remaindermen, however, contend that the corpus of the trust may not be invaded and that, therefore, the Monroe County Department of Social Services must reinstate Medicaid assistance. The County of Monroe, having appeared before this court, contends that it properly discontinued public assistance.

The first question presented is whether the decedent intended that the corpus of the trust be invaded for the purpose of providing support and maintenance for the care of petitioner in the nursing home. This court must answer this question in the affirmative.

The prime consideration in all will construction proceedings is the intention of the testator as expressed in the will, and all [168]*168rules of construction are subordinated to that purpose. (Matter of Dammann, 12 N Y 2d 500; Matter of Larkin, 9 NY 2d 88; Matter of Debout, 35 A D 2d 1067.) The intent of the testator £ must be gleaned not from a single word or phrase but from a sympathetic reading of the will as an entirety and in view of all the facts and circumstances under which the provisions of the will were framed ”. (Matter of Fabbri, 2 N Y 2d 236, 240.) Thus, it is paramount in cases involving the use or nonuse of a trustee’s discretion to invade corpus .that the courts determine the intent of the testator as manifested in the terms of the will. (Matter of Bins, 48 Misc 2d 921.)

The testator here empowered the trustee ‘ ‘ to pay to my sister * * * so much of .the principal thereof as my trustee, in his absolute discretion, .shall deem necessary or advisable, after considering all other resources which my sister shall have, for her support, maintenance, comfort and welfare ”. It has long been held ££ that discretion given is rarely an unfettered one and must be exercised in such reasonable manner as to accomplish and not thwart the very purpose of the trust ”. (Matter of Bins, supra, p. 923.) (See, also, Matter of VanZandt, 231 App. Div. 381.) Contrary to the contention of the executor and trustee that the intent of the testator was to benefit the unrelated residuary legatees, the language of the will indicates a design on her part to devote her estate to the support of her sister. She made it evident that she regarded her sister as the first object ¡of her bounty, and made it clear that, if the income from the corpus was insufficient for her sister’s care, the corpus was available for that purpose.

It is undisputed here that petitioner Euth A. Popp is in poor health, confined to an institution furnishing medical care and support, is 75 years of age, and has no means of support other than monthly pension and Social Security checks in the total amount of $203.20. Her situation has been rendered particularly precarious by reason of the discontinuance of Medicaid assistance by the Monroe County Department of Social Services. As was stated in Matter of Grow (56 Misc 2d 398, 401): ££ Failure to .invade the principal of the trust here would be a breach of fiduciary duty. For the trustees to assert here that .there is authority to withhold benefits is for them to assert that they have discretion even to the extent of thwarting the intention of the testator and defeating the purpose of the trust. Eight reasoning and sheer justice constrain the trustees here to invade to meet the beneficiary’s unquestioned needs ”.

[169]*169Holding that the trustee could withhold corpus in his discretion would be saying that the decedent intended her sister to become a public charge. “It is not proper to say .that the deceased wanted the benevolence of the State to be used as the instrument for the preservation of a present or remainder interest in a trust ”. (Matter of Crow, supra, p. 401.)

‘ ‘ Where a trustee has been given freedom to act according to his own judgment in matters pertaining to another, and he fails, in the opinion of the court, to exercise such discretion in a proper manner, he may be compelled to do that which the trust fairly requires him to do”. (Matter of VanZandt, 231 App. Div. 381, 384, supra.)

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In re the Estate of Cooper, 76 Misc. 2d 166, 349 N.Y.S.2d 613, 1973 N.Y. Misc. LEXIS 1435 (N.Y. Super. Ct. 1973).

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