Feud in Prominent New York Family over Trusts and Financial Control

An intense legal battle is unfolding within a prominent New York family. Constance Milstein, an 80-year-old heiress, has filed a lawsuit against her brother and daughters, accusing them of halting her monthly financial distributions and removing her from family trusts. Constance, granddaughter of late patriarch Morris Milstein, alleges her brother Philip L. Milstein and her daughters, Abigail Black Elbaum and Joanna M. Milstein, are trying to seize $2.5 million from her and block monthly payments.

The lawsuit claims her family exploited her absence while she served as the US ambassador to Malta to undermine her financial rights. The Milstein family, valued at an estimated $3.1 billion, has a history of internal disputes. Constance asserts that during negotiations, her monthly payments were used as leverage. According to her, the abrupt cessation of these payments, which were $125,000 monthly, was deliberate.

Her family argues that the trust primarily benefits her children, not her, and points to her substantial spending, including $23.5 million over recent years. They describe the lawsuit as lacking substance. Constance’s accusations include the claim that her estranged brother and daughters collaborated to oust her from financial control.

The Milstein family, famous for their real estate empire and philanthropy, has been embroiled in past conflicts. The dispute involving Constance highlights ongoing tensions within the third generation. The lawsuit seeks the removal of co-trustees Peter Grossman and James Sligar from a trust associated with Seymour’s widow, Vivian Milstein.

Public court documents suggest Philip Milstein demanded $2.5 million from her trust for the family business, a move seen as pushing settlement talks. These talks involve undefined disputes over business interests. A memorandum of law states Abby and Joanna are the trust’s principal beneficiaries, while Constance has other trusts.

Allegations of lavish spending by Constance involve property purchases and luxury items, while Grossman and Sligar dispute claims of financial leveraging. They argue she could liquidate assets as needed, citing a recent $7.5 million jewelry auction.

The family’s real estate roots began with Morris Milstein. His sons, Seymour and Paul, expanded the business into a real estate empire, undertaking significant projects in New York City. Their ventures included developing thousands of apartments and acquiring Emigrant Bank.

Tension has marked Milstein family dynamics for years. Past disputes over business leadership involved legal actions and power struggles. Philip Milstein co-founded Ogden Cap Properties with Constance and Abigail, managing their family share in collaboration with Grossman and legal counsel from Sligar’s firm.

Though Constance hinted at strained family relationships in past public comments, the exact reasons for current familial tensions are not fully clear. Her daughters have prestigious roles, with Abigail co-founding Ogden and serving on Columbia University’s board of trustees. Joanna has engaged in art history and creative writing.