United States District Court, D. New Hampshire
Evan W. Gray
Chester L. Gray, III
W. Gray, pro se
M. Hamel, Esq.
F. Holmes, Esq.
Bradley M. Lown, Esq.
S. McCandless, Esq.
B. Nicholson, Esq.
J Schweitzer, Esq.
A. DiClerico Jr. United States District Judge.
1996, Barbara Gray and Chester L. Gray, Jr.,  created,
respectively, the “BJG Trust” and the “CLG
Trust.” In 2011, they restated the terms of their
respective trusts by executing the trust documents at issue
in this case.
and Chester served as the initial co-trustees of both the CLG
Trust and the BJG Trust, which were revocable until their
respective settlor's death, at which point they became
irrevocable under their provisions. Among the assets included
in the CLG Trust is real estate located in Grafton and
Springfield, New Hampshire.
the principal purposes of the CLG Trust is to hold and
maintain the Grafton and Springfield real estate for Barbara
and Chester's descendants “as long as is reasonably
and prudently possible.” Doc. 15-1 at 5. To that end,
the CLG Trust provides that, after Chester's death, the
real estate will be held in a Continuing Trust, which shall
exist until certain conditions outlined in Article
2.2.A(2)-(4) of the CLG Trust are met.
addition, after Chester's death, the CLG Trust provides
for the creation of a “maintenance fund” for the
real estate, which is to be funded with assets valued at
$820, 000 adjusted for inflation. After all of the CLG Trust
provisions have been satisfied, the remainder of the CLG
Trust's assets are to be distributed equally among
Barbara and Chester Gray's three sons, Skip Gray, Scott
Gray, and Evan Gray.
Trust provides for the management of Barbara's assets
before and after her death. Barbara died in 2013. Following
her death, Chester became sole trustee of both trusts.
the BJG Trust, after Barbara's death the income from the
trust was payable to Chester “in convenient
installments, at least quarterly during his lifetime.”
Art. 2.3.A(1), doc. 15-2 at 4. Chester was also allowed to
receive “from the principal of the trust from time to
time such amounts as are in [the] trustee's discretion
necessary for his support and maintenance in his accustomed
manner of living and for his health care, after taking into
account the income payable to him hereunder and all other
resources available to him.” Art. 2.3.A(2), doc. 15-2
at 4. The “power to use principal for [Chester's]
benefit shall not be exercised without the consent of an
independent trustee or one of [Barbara's]
remained as trustee of both the BJG Trust and the CLG Trust
until his death in 2017. The BJG Trust includes provisions
that became effective after the death of both Barbara and
Chester. One of the principal provisions of the BJG Trust is
Article 2.4.A which provides:
If at the time of the death of my husband and myself, the
amount of liquid assets held in the continuing trust for real
estate located in Grafton and Springfield, New Hampshire as
set forth in my husband's trust is less than [$820, 000
adjusted for inflation], I direct that my trustee distribute
from my trust an amount of property that will increase the
sums held in said continuing trust of my husband's to
[$820, 000 adjusted for inflation].
Doc. 15-2 at 5. Any remaining money and assets are to be
distributed equally among Skip, Scott, and Evan.
Chester's death, Skip, Scott, and Evan became co-trustees
of the BJG Trust, and Skip became sole trustee of the CLG
Trust. Skip was also named executor of Chester's estate
(the “CLG Estate”).
case involves disputes among Skip, Scott, and Evan. Evan
brought suit against Skip as executor of the CLG Estate; as
sole trustee of the CLG Trust; and as co-trustee of the BJG
Trust. Evan alleges that his father, Chester, prior to his
death, breached his fiduciary duties while he was the trustee
of the BJG Trust. Evan also alleges that Skip has breached
his fiduciary duties as trustee of the CLG Trust, and he
seeks removal of Skip as co-trustee of the BJG Trust based on
alleged conflicts of interest.
capacities as executor of the CLG Estate and trustee of the
CLG Trust, Skip filed counterclaims for indemnification and
for a declaratory judgment concerning the application of the
BJG Trust's “pour over” provision, Article
2.4.A (the “CLG Estate