ESTATE OF ARIE GENGER, Grantor

ESTATE OF ARIE GENGER, Grantor (08/0017) — This is a proceeding by Orly Genger, the primary beneficiary of an irrevocable inter vivos trust established in 1993 by her father, Arie Genger, seeking removal of her mother, Dalia Genger, as trustee and the appointment of a successor trustee. Pending are two motions to dismiss Orly's third amended petition, one by Dalia and the other by the trustee of the contingent remainder beneficiary, a trust Arie Genger established for the benefit of Orly's brother Sagi (the "Sagi Trust"). For the reasons stated below, the motions are denied.

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ESTATE OF ARIE GENGER, Grantor (08/0017) — This is a proceeding by Orly Genger, the primary beneficiary of an irrevocable inter vivos trust established in 1993 by her father, Arie Genger, seeking removal of her mother, Dalia Genger, as trustee and the appointment of a successor trustee. Pending are two motions to dismiss Orly’s third amended petition, one by Dalia and the other by the trustee of the contingent remainder beneficiary, a trust Arie Genger established for the benefit of Orly’s brother Sagi (the “Sagi Trust”). For the reasons stated below, the motions are denied.

The trust at issue (the “Orly Trust”) provides for discretionary income and principal distributions to Orly for life, with remainder to her descendants, or, if none, to the Sagi Trust. The original trustees and a series of successors served until January 2008, at which time Dalia was designated trustee. By this time, Dalia and Arie had concluded a bitter divorce. Orly, who believed her mother “would not protect her interests…because of [her] animosity towards Arie, and her collusion with Sagi” immediately commenced a proceeding in this court, challenging the validity of her mother’s appointment. In the alternative, she sought the appointment of a “special trustee” to investigate alleged “wrongful dealings concerning the assets and income of the trust.” In deference to Orly’s position, Dalia refrained from acting as trustee during the pendency of the application. However, on December 31, 2008, the court held that Dalia’s appointment was valid under the terms of the trust and that Orly had set forth no grounds that would warrant the appointment of a “special trustee.” The application was thus denied “without prejudice to renewal if future circumstances warrant[ed] such relief” (Matter of Genger, NYLJ, Jan. 9, 2009, at 34, col 2 [Sur Ct, NY County 2009]). Thereafter, Dalia began acting as trustee.

ESTATE OF ARIE GENGER, Grantor

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