Surrogate Nora Anderson
CO-trustee Holder sought to have two trusts created under decedent Rubin’s will converted into unitrusts under Estates Powers and Trusts Law §11-2.4 in this uncontested petition. Rubin’s residuary estate was divided into two trusts, one for each daughter—Barbara and Patricia, respectively. The court noted, in determining if the unitrust provisions should apply, §11-2.4 set forth a nonexclusive list of “relevant” factors to be considered, including a need for liquidity and preservation of capital, and the nature, purpose and expected duration of the trust. After considering the factors, it noted it was persuaded the requested conversions of both thrusts would be beneficial to the income beneficiaries and the remaindermen. The court stated given the daughters’ respective ages, 75 and 68, it appeared unlikely the conversions would result in a rapid depletion of the assets of their respective trusts. It found the conversion would result in annual distributions of four percent of the principal of the daughters’ trusts, $55,000 and $64,000 annually. Also, Holder contended if the unitrust provisions were applicable, the assets of both trusts could be invested to maximize total return, benefitting the income beneficiaries and remaindermen. The court agreed, granting the petition.