Trustees Everywhere Be AfraidTrustees Everywhere Be Afraid
A New York judge's recent decision in Estate of Dumont1 should give trustees reason to pause and re-evaluate the investment policies and procedures of any trust for which they act, that is governed by or may come to be governed by New York law. The judge held a trustee liable to the tune of $21 million for failing to diversify Eastman Kodak stock when its share prices fell in the 1970s, even though
Ian Marsh, principal, Withers LLP, London, and Michael Ben Jacob, principal, Withers Bergman LLP,
A New York judge's recent decision in Estate of Dumont1 should give trustees reason to pause and re-evaluate the investment policies and procedures of any trust for which they act, that is governed by or may come to be governed by New York law. The judge held a trustee liable — to the tune of $21 million — for failing to diversify Eastman Kodak stock when its share prices fell in the 1970s, even though the trust's settlor specifically instructed that the Kodak stock not be sold solely for diversification reasons.
The July 13, 2004, decision by Monroe County, N.Y. Surrogate Judge Edmund A. Calvaruso in Dumont makes fascinating reading, particul...
Unlock All Access Premium Subscription
Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!
Already Subscribed?
