Kritchman v. Wolk

Lola Kritchman, decedent, established a revocable living trust directing the trustee, Wells Fargo (plaintiff), to disburse trust principal as Lola directed. Lola paid for Hunter Wolk’s (defendant) first two years of undergraduate tuition at Yale University. Before Wolk’s junior year at Yale, Lola sent a written directive ordering Wells Fargo to arrange payment for Wolk’s junior and senior years from trust assets and estimating the cost of same. The trust instrument broadly defined “education” but did not include any specific bequests to Wolk for educational expenses. Wells Fargo paid for the fall semester of Wolk’s junior year at Yale. Lola then died, and her son, William Kritchman (plaintiff), became successor co-trustee with Wells Fargo. After Lola’s death, William and Wells Fargo failed to pay for Hunter’s final three semesters at Yale. Wolk sued Wells Fargo and William in their capacity as co-trustees, arguing that (1) the co-trustees failed to administer the terms of the trust in good faith; and (2) because the trust broadly defined “education,” it should also cover his graduate-school expenses. The co-trustees used trust assets to pay their litigation costs. The trial court held that (1) the co-trustees were liable for breach of trust; (2) the trust must cover Wolk’s undergraduate expenses as Lola directed; and (3) the co-trustees must reimburse the trust for their litigation costs. The trial court reserved judgment on Wolk’s graduate-school expenses. The co-trustees appealed.