NationsBank of Virginia v. Estate of Grandy

In this case, we consider whether the trial court improperly substituted its judgment for that of a testamentary trustee by ordering the invasion of trust principal to satisfy the debts of an incapacitated beneficiary with substantial personal assets.

Ann Lawrence Grandy, age 59, suffers from a chronic paranoid schizophrenic illness. Through a court order entered in February 1993, a guardian for Ms. Grandy’s estate and a guardian of her person were appointed. Prior to these appointments, Ms. Grandy managed her own finances. A guardian ad litem was also appointed to represent Ms. Grandy.

Ms.…