Matter of Goldman

CourtNew York Surrogate Court
Citation764 N.Y.S.2d 175,196 Misc.2d 968
Decision Date18 August 2003
PartiesIn the Matter of the Estate of LILLIAN GOLDMAN, Deceased.

196 Misc.2d 968
764 N.Y.S.2d 175

In the Matter of the Estate of LILLIAN GOLDMAN, Deceased.

August 18, 2003.


Simpson, Thacher & Bartlett, New York City (Mildred Kalik of counsel), for petitioners.

OPINION OF THE COURT

RENEE R. ROTH, S.

The trustees of the trust created under article NINTH of the will of Lillian Goldman request the issuance of limited letters to a "special purpose trustee" in a novel application of section 702 of the Surrogate's Court Procedure Act.

[196 Misc.2d 969]

The trust in question was created for the benefit of decedent's daughter and her issue. The daughter presently has one child who is a trustee of this trust along with two of decedent's other children.

Article TWELFTH of Mrs. Goldman's will authorizes the trustees to confer upon any beneficiary a general power of appointment over the trust remainder and to modify or revoke such power by an instrument delivered to the donee. If such a power is not conferred, the remainder will pass upon the daughter's death to her appointees among her issue under a special testamentary power, or, in default of her exercise of such power, to her issue then living, or, if the daughter has none, to decedent's then living issue, per stirpes.

The trustees have been advised that substantial overall tax savings to the family could be achieved if a general power of appointment (within the meaning of Internal Revenue Code [26 USC] § 2041) is conferred upon the daughter. Although the conferral of a general power would make the fund includible in the daughter's estate for purposes of estate tax, a credit for previous tax paid is available if the daughter dies within a certain time period. Concomitantly, the inclusion of the fund in the daughter's taxable estate would avoid a generation skipping transfer tax, against which no such credit is available.

Petitioners have been further advised, however, that, because they are all persons with contingent remainder interests in the trust, their decision to confer a general power upon the daughter, in the exercise of their discretion as fiduciaries, might be deemed (under section 2511 of the Internal Revenue Code) a taxable gift by them individually. They thus request the appointment of a disinterested third party as a trustee for the special purpose of giving a revocable general power of appointment to the daughter, without the need for the consents of the other trustees, thus avoiding such exposure to gift tax liability.

Article SIXTEENTH (E) of Mrs....

To continue reading

Request your trial
4 practice notes
  • In the Matter of Estate of Stoller, 2004 NY Slip Op 24219 (NY 9/8/2005)
    • United States
    • United States Court of Appeals (New York)
    • September 8, 2005
    ...different from the fiduciary's individual interests (see, e.g., Matter of Rimland, 2003 NY Slip Op 50966[U] [2003]; Matter of Goldman, 196 Misc 2d 968 [2003]; Matter of Davidson, 177 Misc 2d 928 [1998]; Matter of Teah, 166 Misc 2d 976 [1996]; Matter of Vasquez, 162 Misc 2d 184 It is observe......
  • Matter of Stoller
    • United States
    • New York Surrogate Court
    • June 18, 2004
    ...different from the fiduciary's individual interests (see, e.g., Matter of Rimland, 2003 NY Slip Op 50966[U] [2003]; Matter of Goldman, 196 Misc 2d 968 [2003]; Matter of Davidson, 177 Misc 2d 928 [1998]; Matter of Teah, 166 Misc 2d 976 [1996]; Matter of Vasquez, 162 Misc 2d 184 It is observe......
  • In the Matter of the Estate of Kalikow, 2007 NY Slip Op 30431(U) (N.Y. Surr. Ct. 3/28/2007), 0340361.
    • United States
    • New York Surrogate Court
    • March 28, 2007
    ...SCPA 702(8) and (9) have typically been used to protect an estate from the prospect of self-dealing by the fiduciary (Matter of Goldman, 196 Misc 2d 968 [Sur Ct, New York County 2003]). Limited letters, however, have also been issued with respect to conflicts of interest relating to tax mat......
  • In the Matter of Menitskiy, 2009 NY Slip Op 33102(U) (N.Y. Surr. Ct. 12/24/2009), No. 351064.
    • United States
    • New York Surrogate Court
    • December 24, 2009
    ...and (9) have typically been used to protect an estate from the prospect of self-dealing by the fiduciary (Matter Page 11 of Goldman, 196 Misc 2d 968 [Sur Ct, New York County 2003]). The court is mindful, however, that insofar as the conflict of interest is a situation created by the deceden......
4 cases
  • In the Matter of Estate of Stoller, 2004 NY Slip Op 24219 (NY 9/8/2005)
    • United States
    • United States Court of Appeals (New York)
    • September 8, 2005
    ...different from the fiduciary's individual interests (see, e.g., Matter of Rimland, 2003 NY Slip Op 50966[U] [2003]; Matter of Goldman, 196 Misc 2d 968 [2003]; Matter of Davidson, 177 Misc 2d 928 [1998]; Matter of Teah, 166 Misc 2d 976 [1996]; Matter of Vasquez, 162 Misc 2d 184 It is observe......
  • Matter of Stoller
    • United States
    • New York Surrogate Court
    • June 18, 2004
    ...different from the fiduciary's individual interests (see, e.g., Matter of Rimland, 2003 NY Slip Op 50966[U] [2003]; Matter of Goldman, 196 Misc 2d 968 [2003]; Matter of Davidson, 177 Misc 2d 928 [1998]; Matter of Teah, 166 Misc 2d 976 [1996]; Matter of Vasquez, 162 Misc 2d 184 It is observe......
  • In the Matter of the Estate of Kalikow, 2007 NY Slip Op 30431(U) (N.Y. Surr. Ct. 3/28/2007), 0340361.
    • United States
    • New York Surrogate Court
    • March 28, 2007
    ...SCPA 702(8) and (9) have typically been used to protect an estate from the prospect of self-dealing by the fiduciary (Matter of Goldman, 196 Misc 2d 968 [Sur Ct, New York County 2003]). Limited letters, however, have also been issued with respect to conflicts of interest relating to tax mat......
  • In the Matter of Menitskiy, 2009 NY Slip Op 33102(U) (N.Y. Surr. Ct. 12/24/2009), No. 351064.
    • United States
    • New York Surrogate Court
    • December 24, 2009
    ...and (9) have typically been used to protect an estate from the prospect of self-dealing by the fiduciary (Matter Page 11 of Goldman, 196 Misc 2d 968 [Sur Ct, New York County 2003]). The court is mindful, however, that insofar as the conflict of interest is a situation created by the deceden......

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT