Jeffrey Ayotte

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.

The former trustees of a family trust applied to pass their accounts.

The beneficiaries objected to several expenses, including fees paid to a former trustee acting as an agent, a second share valuation report, and certain legal fees.

The court held that despite an exculpatory clause in the trust document, the trustees breached their substratum duties by retaining the conflicted former trustee as an agent and commissioning an unnecessary valuation report.

The court disallowed the agent's fees, the valuation report costs, and a portion of the legal fees, ordering the trustees to repay the disallowed amounts to the trust.