The applicant estate trustee applied to pass his accounts.
The respondent beneficiaries objected, alleging the trustee failed to pay debts, failed to diversify the stock portfolio, purchased shares on margin, improperly paid himself $70,000 as an alleged inter vivos gift, and incurred tax penalties.
The court found the trustee breached his fiduciary duties by failing to diversify and by making high-risk margin investments.
The court also found the $70,000 payment was an unperfected gift.
The trustee was removed and ordered to pay $357,140 to the estate to cover investment losses, tax penalties, excess compensation, and the invalid gift.
