On a contested passing of accounts, estate trustees sold the estate’s principal asset—a farm—to a sibling beneficiary for substantially less than its appraised market value and without exposing the property to the open market.
Beneficiary objectors alleged breach of fiduciary duty, improper estate expenditures, and excessive executor compensation.
The court held the estate trustees breached fiduciary obligations by selling the asset below fair market value and failing to treat beneficiaries impartially.
Certain estate expenditures incurred in connection with the improper transaction were characterized as waste and ordered repaid personally by the trustees, while other costs associated with a subsequent open-market sale were allowed.
Executor compensation was significantly reduced and the accounts approved subject to the court’s corrections and disallowances.