In re Maint. Fund Trust of Sunset Mem. Park Chapel

Summary

The Nebraska Supreme Court held that the Sunset Memorial Park Cemetery Association had standing to participate in proceedings concerning a perpetual-care mausoleum trust. The court further held that the trustee could not resign without identifying or providing for a successor trustee, and therefore reversed the trustee’s discharge and related fee award while affirming the denial of attorney fees and remanding for further proceedings.

Holdings

1. The Cemetery Association had standing because the trust agreement gave its officers authority to select the trustee and because the association had legal interests in the selection of a successor trustee, possible termination or reversion, and care of the mausoleum.
2. A trustee of a perpetual-care, special-purpose mausoleum trust may not resign and be discharged without compliance with the trust agreement's requirement to apply for appointment of a successor trustee and without provision for continued trust management.
3. The trustee was not entitled to the litigation costs, fees, and expenses awarded by the county court because it sought discharge in a manner inconsistent with the trust agreement and failed to provide for a successor trustee or future management.
4. The county court did not err in denying the parties' motions for attorney fees.

Questions Presented

1. Whether the Cemetery Association had standing to object to the trustee's petition and participate in the trust proceedings.
2. Whether the trustee could resign and be discharged without identifying or securing a successor trustee or otherwise providing for future management of the perpetual-care trust.
3. Whether the trustee was entitled to recover litigation costs, fees, and expenses from the inviolate trust principal after seeking discharge in a manner inconsistent with the trust agreement.
4. Whether the county court properly denied the parties' requests for attorney fees.

Disposition

reversed_and_remanded