Matter of Carniol

When David Carniol died, his will purported to transfer ownership of his cooperative apartment to a trust to benefit his granddaughter, Aimee Carniol. The trust was to retain the apartment for Aimee’s use, with Aimee being responsible for related expenses, such as taxes, maintenance, and insurance. With Aimee’s consent, the trustee could sell the apartment and invest the proceeds in another residence to be held in trust under the same terms. Upon Aimee’s death, any residence owned by the trust was to be sold, with the proceeds passing to a separate trust known as the Article Fifth trust. That trust required lifetime payments of trust income to Aimee and Steven Carniol, David’s other grandchild, and allowed the trustee to invade the trust principal as needed for their health, support, or maintenance. Rhonda Carniol (plaintiff), the executor of David’s estate, notified the cooperative apartment board of the intended transfer of David’s apartment to a trust for Aimee’s benefit. The board said that it would not transfer ownership to a trust and that Aimee needed board approval before residing in the apartment. Aimee and her father failed to complete the cooperative’s application forms, and Rhonda suspected that even if they did, the board would not approve Aimee because of her financial situation and background. Rhonda asked Aimee’s permission to sell the apartment, but Aimee did not definitively respond. Rhonda then filed a petition in New York Surrogate Court, asking the court to allow either Rhonda or the trustee to sell the apartment and purchase a replacement residence for Aimee. Rhonda also requested an order requiring Aimee to pay the apartment’s related expenses while the proceeding was pending, as the Article Fifth trust was currently having to pay those expenses.