Chancery Division Relies on Extrinsic Evidence in Finding on Reconsideration that Contradicting Language in the Will created a Testamentary Trust
In re Estate of Vuong, Docket No. Mon-P459-19 (N.J. Super. Ct. Ch. Div. June 17, 2025)
The case involves the estates of Quy Dinh Vuong (“Peter”) and Nghia Thi Le, whose wills led to a dispute between their children, Chinh Minh Vuong (“Chinh”) and Thu M. Ngo (“Thu”).
In particular, Peter’s will named Thu as executrix and directed that the residuary estate pass to Chinh, with an additional statement that Chinh would carry out Peter’s instructions for the care of Chinh’s mother, brothers, and sisters. The trial court had to determine whether Peter intended to give all his property to Chinh outright or to create a trust for the benefit of the family.
In an earlier ruling, the trial court found only the imposition of a moral obligation as evidenced by extrinsic factors such as Peter’s cultural beliefs, his communications, and a draft will prepared shortly before his death.
Thu applied for reconsideration and argued that the judge erred by failing to recognize Peter’s probable intent to create a trust. Reconsideration was granted, and it was determined that extrinsic evidence was required to determine Peter’s probable intent. In re Estate of Vuong, Docket No. Mon-P459-19 (N.J. Super. Ct. Ch. Div. Aug. 24, 2024).
Consistent with the findings on reconsideration, the court held a non-jury trial. The court concluded that the residuary estate was to be held in trust by Chinh for family purposes, as suggested by Peter’s 2000 Chi Thi instructions, which were kept with Peter’s will in a safety deposit box.
However, due to Chinh’s unwillingness to recognize the trust and his intractability, the court disqualified him from serving as trustee. The court explained that a trustee may be removed to protect the trust from future jeopardy and from acts that may diminish or endanger the trust. The court found that Chinh’s inability to consider that his parents imposed limitations on his use of the property eliminated him as an appropriate trustee of the trust. Thu was appointed as the successor trustee, given her role as executrix and the trust placed in her by the family.
The court also addressed exceptions to Thu’s accounting, finding no substantial issues with her handling of the estates. The court ordered Chinh to transfer the Chestnut Street property and other assets to Thu to be held in trust. Additionally, the court found insufficient evidence to support claims of gifts causa mortis made by Peter. An appropriate judgment was entered to reflect these findings.