Court reduces size of Trouble’s pet trust

You may remember that earlier on this blog I discussed the  Last Will and Testament of Leona M. Helmsley in which Leona left her dog, Trouble, to her brother (Alvin).  She also left $12 million to the Leona Helmsley July 2005 Trust.  This is a “pet trust” for Trouble’s care.  The exact terms of this trust are unknown because the trust was create inter vivos (while Leona was alive) and is not required to be placed on the public record.

On April 30, 2008, Manhattan Surrogate Judge Renee Roth reduced amount in the pet trust to $2 million with the $10 million balance passing to Leona’s charitable foundation.  The judge’s decision was made public yesterday (June 16, 2008).

According to Judge cuts US dog’s $12m legacy, BBC News, June 16, 2008:

Trouble’s trustees said the dog did not need the full $12 million and requested the switch, the New York Post reported.

It quoted an affidavit from Carl Lekic, the general manager of the Helmsley Sandcastle Hotel, which said $2m would be enough for twice the dog’s life expectancy.

He put the annual expenses at $190,000, the Post said.

In an apparently separate agreement worked out between Mrs Helmsley’s grandchildren and executors of the estate, two grandchildren previously excluded will now receive money, although none of the parties has spoken publicly.

Mrs Helmsley’s will says when Trouble dies she will be buried alongside her and her late husband Harry in their mausoleum.

Special thanks to Sara Hudman (J.D. 2008, Texas Tech University School of Law) for being the first of the scores of readers to bring this development to my attention.