In the Matter of Estate of Leon C. Chamberlain, 135 A.D.3d 1052 (N.Y. App. Div. Jan. 7, 2016) -

Modification of trust terms is appropriate where limitations on investments permitted under trust instrument frustrated the purposes of the trust, even though this circumstance was not necessarily “unforeseen” at the time of creation of the trust -

Facts: Leon Chamberlain died in 1999. In his will, he made bequests to three churches, to be held in trust and invested only in government securities and insured bank accounts. The income from the trusts was to be used for maintenance of the physical property of each church. The churches argued that the restrictions on the types of investments in the will rendered the trust income essentially negligible. Accordingly, the churches filed a petition, with the consent of the New York Attorney General, to amend the investment restrictions and to allow for investment in accordance with the Prudent Investor Act. The trial court denied the petition, finding that no “unforeseen” change in circumstances had occurred. The churches appealed.