Trust intent
Intended that the invade the trust principal for the comfort, maintenance and support of the widow
Power of beneficiary to enjoin trustee for waste of assets
Bonds 25% of trust corpus
Land 25% of trust corpus- testator intended the land be sold “as soon as possible” fair market value
Stock in team- 50% of trust corpus “retained by trustee”

A testamentary trust is a trust created by a testator where the trust res is transferred to the trustee at Testators death. A trust is created when the settler evidences a present intent to create a trust, here that was expressed by testamentor in his will
For a trust to exist there must be a settlor giving a trust property to a trustee for the benefit of a beneficiary. The trustee has legal title of the trust res and the Beneficiary holds equitable title. The trustee is a fiduciary of the beneficiary.
This is a Private testamentary trust- it was the settlers intention that the trust res be retained and used for the benefit of one ascertainable party. The widow is the ascertainable beneficiary and the her children are the remaindermen

The bonds and the common stock are income generating

Has trustee breached an express term?
Has trustee breached an implied duty?

Is there friction and hostility between the trustee and the beneficiary?

The trustee has a duty to strike a fair balance between all classes of beneficiaries- a fair balance between the “income beneficiary” and the remaindermen who are entitled to the corpus at termination of the trust.
the remaindermen want higher retention of value while the widow wants current yield of profits to come to her-

The trustee can properly exercise only such powers as are expressly or impliedly conferred on her.- (impliedly being those that are appropriate to achieve the proper investment, management and distribution of the trust property and that are not forbidden by the terms of the trust)

Trustees have imperative powers and discretionary powers
Imperative powers are those which are expressed in the trust as a particular act or duty
Discretionary powers are those conferred on the trustee to exercise in good faith discretion in administering the trust
Here LMB had the imperitive or manditary power to sell the land as soon as possible
Land 25% of trust corpus- testator intended the land be sold “as soon as possible” fair market value
As such LNB has breached its mandatory power under the trust and can be compelled by widow to sell the property and (get FMV at a reasonable time after testators death?)

Prudent Trustee Rule- Uniform Prudent Investor act requires that the decisions of the trustee “in her discretion” satisfy the Prudent Trustee Standard- she must invest as a prudent investor would- and exercise reasonable care, skill, and caution in making investment decisions-
Here- the trustee is a bank- and as such is held to have special skills and held to a higher standard as banks are in the business of investment decisions- as such lNB is held to a higher standard of prudent investing-
Investment is measured by the “overall return”


Stock in team- 50% of trust corpus “retained by trustee”
Trustee has sold more than 5000 shares- reducing the trust corpus percentage to 25%
Income in trust assets goes back to trust- here the dividends 10% dividend is part of the value of the stock
Further the value of the stock involves both the inherent fair market value and the ownership value that the beneficiary has in the Semitor corporation- Trustee has now reduced this amount to a 1/6th interest in the corporation- a siginificant decline in ownership and corresponding control of the corporation.

Widows remedies
If the trustee comits or is about to commit a breach of his trust duties the court can enforce several remedies including
Specific performance of the trustees duties, an injunction against the trustee from committing further breaches, compelling the trustee to pay $ or restore property and suspending the trustee.
Here the court could order specific performance of the land sale term and
Enjoin the sale of the stock-
Compel the trustee to return the value of the common stock back into the trust res amounting to 25% including any funds gained by the sale- (did this amount go back into the trust?)

Effect of her writing to trustee- to sell the land
To retain the stock

Removal of trustee
A court may remove a trustee on request of the settler upon certain grounds
commission of a serious breach of trust,Lack of cooperation among trustees that substantially impairs trust administration,Unfitness, unwillingness or persistant failure to administer the trust or
Substantial change in circumstances so that removal is in the best interests of all beneficiaries.
Here, widow will argue that Last N B has committed a serious breach of trust in the

Allocation of receipts and expenses between principal and income?

The term that the trustee is in “sole discretion” to invade the principal for the support of the widow.
In florida law the effect of tying the trustee’s discretion to this standard is that the widow can compel the trustee to make a distribution from the corpus that is necessary for her support

Trustee has a duty to keep the property productive-
If the land declines in value from the construction of a shopping mall next door the trustee has violated his duty of trust.