New York heiress sues family over halted trust payments
Constance Milstein alleges her brother and daughters stopped monthly distributions and demanded a $2.5 million investment from her trust.
An 80-year-old New York real estate heiress, Constance Milstein, has filed a legal petition against her brother Philip and her daughters, Abigail Black Elbaum and Joanna M. Milstein, according to the Times of India. Milstein, a former US ambassador to Malta, claims that trustees Peter Grossman and James Sligar stopped her monthly trust distributions of $125,000 in the summer of 2025.
Her legal team alleges that the suspension of these payments and a demand for $2.5 million for a family business by September 2025 were tactics to force her into settlement talks. Milstein is asking the court to remove Grossman and Sligar as trustees, claiming they are working against her interests.
The relatives and trustees have denied all wrongdoing in a counter-filing seeking to dismiss the lawsuit. They argued that the trust was primarily for the benefit of Milstein's children and that she is a discretionary beneficiary rather than a guaranteed recipient of funds.
The defence stated that Milstein has significant assets, alleging she spent approximately $23.5 million in recent years on items including a Montreal residence, New Hampshire homes, jewellery, and private aviation. They also noted she recently auctioned jewellery for $7.5 million, suggesting she has sufficient liquidity to support herself.