Chapter 13 - Diane sues the trustee
Diane filed a petition in probate court.
Not to take Emma’s money.
To challenge Harbor’s administration.
Claims:
Harbor was improperly allowing marital conflict to influence investment decisions.
Harbor had exceeded authority by trying to condition trust investment on Legacy Ventures compensation rules.
Harbor’s fees excessive.
Harbor had become hostile to family investment policy.
Could a family adviser petition?
Her standing was limited.
But as trust adviser and adult family participant, she could raise certain administration issues under the instrument.
The probate judge allowed a narrow review.
No immediate removal.
Diane wanted a family bank instead of Harbor.
Why?
She said:
“Harbor treats us like strangers.”
Exactly what independent trustees do when families want exceptions.
Then Harbor’s response.
It had approved family private investments before.
Legacy Ventures was not banned.
It objected only to:
Concentration.
Conflicts.
Using minor capital to determine Mark’s management compensation/status.
Reasonable.
Then trustee fees.
Annual:
About 0.55% blended for family trust.
Market range supported.
No obvious gouging.
Then Diane produced evidence Harbor had once approved 35% concentration for another branch.
Different facts:
Adult beneficiary.
Signed waiver.
No minor.
No related-party compensation.
Not comparable.
Then Mark joined his mother’s petition initially.
That hurt Emma when she learned indirectly? Children shouldn't know. We kept it from her.
His argument:
Harbor's condition interfered with his employment opportunity.
Probate judge asked:
“Is your employment opportunity a trust purpose?”
Silence.
His attorney:
“No, Your Honor.”
Then:
“Then why should minor beneficiaries’ capital be evaluated based on it?”
No good answer.
Mark withdrew that part.
Then Richard filed a declaration supporting Harbor.
Diane was furious.
At home? Not our home. She texted him.
You chose Lauren over your wife.
Richard:
I chose the document I signed.
There.
Forty years of silence ending one text at a time.
Then Claire.
She filed testimony that Diane’s branch-scoring system was personal, not Samuel’s trust governance.
She provided old versions showing scores changed whenever Diane wanted.
No legal authority.
Then Diane’s lawyer became more careful.
She stopped defending male-heir ideas.
Called them:
“Cultural family language.”
May you like
The court did not care.
Trust interpretation was written.
