186 Conn. App. 482
Conn. App. Ct.2018Background
- Susan D. Elia (the conserved person) voluntarily sought and was granted a conservatorship of her person and estate in Connecticut on June 28, 2011; Renee Seblatnigg was appointed conservator of the estate.
- Seblatnigg, acting as conservator, retained First State affiliates and supervised Elia’s execution of a Delaware self-settled irrevocable trust (Sept. 15, 2011) and a wholly owned LLC (Peace at Last) to receive transfers.
- Seblatnigg directed transfers of over $6 million from Elia’s conservatorship estate (and assets previously in a Connecticut revocable trust) into the Delaware irrevocable trust and the LLC, without obtaining Probate Court approval.
- Seblatnigg later resigned; Margaret Day was appointed coconservator, limited to matters concerning Elia’s interest in the Delaware trust, and she brought this declaratory judgment action seeking to void the trust as void ab initio and to recover the transferred assets to the conservatorship estate.
- The Superior Court granted summary judgment for Day, declaring the Delaware irrevocable trust void ab initio and ordering return of the assets; First State Fiduciaries (protector) appealed, raising standing, joinder (Bryn Mawr Trust Co. as trustee), and capacity/authority issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue under conservatorship statute | Conservator (Day) has authority under §45a-655(a) to manage estate and pursue actions necessary to protect estate interests; no Probate Court approval required to commence such suits when implied by duty. | Plaintiff lacked standing because she did not obtain Probate Court approval and §45a-655(a) only references suing to collect debts. | Held for plaintiff: conservator has statutory standing; power to initiate appropriate litigation is implied by §45a-655(a) and case law (e.g., Doyle). |
| Joinder / necessary party (Bryn Mawr Trust Co.) | Not necessary: issue is validity of the trust, not protection of trustee’s possession; Bryn Mawr had notice via Delaware action and did not intervene; First State can represent aligned interests. | Bryn Mawr, as alleged trustee holding legal title, was a necessary party and must be joined to affect trust assets. | Held for plaintiff: Bryn Mawr was not a necessary party; no statute mandated joinder and its due process interests were not impaired. |
| Capacity / authority to form/convert trust while under voluntary conservatorship | Conservatorship statute vests management of the estate in the conservator; a voluntarily conserved person does not retain control of estate assets absent termination of the conservatorship. | A 2007 statutory revision (least restrictive means) permits conserved persons to retain decisionmaking over estate matters; Elia could convert the revocable trust to irrevocable herself. | Held for plaintiff: Elia lacked authority to validly form/convert the irrevocable trust while under voluntary conservatorship; the trust was void ab initio. |
| Validity of transfers made by former conservator without Probate approval | Transfers effectuated by Seblatnigg while serving as conservator without Probate approval were unauthorized and must be unwound; assets belong to the conservatorship estate. | Transfers were valid (Elia executed trust as grantor) and/or were not conservatorship assets; trustee and protector controls should govern asset disposition. | Held for plaintiff: transfers were unauthorized and void together with the trust; assets must be returned to the conservatorship estate. |
Key Cases Cited
- Romprey v. Safeco Ins. Co. of America, 310 Conn. 304 (overview of summary judgment standards)
- Doyle v. Reardon, 11 Conn. App. 297 (conservator may sue without prior Probate approval when litigation is implied by duty)
- Luster v. Luster, 128 Conn. App. 259 (broad interpretation of conservator’s power to initiate suit)
- In re Devon B., 264 Conn. 572 (standards for necessary parties and joinder)
- Bank of New York v. Bell, 142 Conn. App. 125 (trustee is proper party for actions affecting title to trust property)
- Gross v. Rell, 304 Conn. 234 (conservator manages conservatee’s estate; scope of duties)
- Kortner v. Martise, 312 Conn. 1 (legislative intent that conserved persons retain maximum independence; construing least restrictive means)