Chabad-Lubavitch Related Controversies - Weinstock Estate

Weinstock Estate

The "Weinstock estate" case, that dragged through the courts for ten years, divided the highest levels of Chabad administration into two irreconcilable camps.

In 1978 Judah Leo Weinstock bequeathed a $32 million estate to the United Lubavitcher Yeshivot (ULY), a body that oversaw the funding of four Chabad yeshivas, under the direction of Rabbi Shemaryahu Gurary. The donation had been solicited for the ULY by Rabbi Nachman Sudak, a Chabad emissary in London. However, Weinstock had asked that the money be used to establish Yeshivas in Israel, something that ULY was not capable of. Gurary ordered that the monies be distributed evenly between ULY and Merkos L'Inyonei Chinuch (MLC) which maintained Yeshivas outside the US. In 1987 a board of trustees (including Yehuda Krinsky) was established that distributed the money on a discretionary basis between ULY and MLC.

In October 1994, a few months after Schneerson's death ULY fell into financial troubles. The directors of ULY requested large sums from the trustees - eating into the principal of the estate. The directors of the MLC (some of whom were also trustees of the estate) objected to the requests, and the trustees of the estate refused to grant the money.

Furious, the directors of ULY began claiming sole title to the estate, based on a strict reading of Weinstock's original bequest. The ULY took the MLC to court, having failed to agree on a mutually acceptable Beit Din. The previously open relationship between the ULY, MLC and the trustees - while Schneerson was alive - complicated the case, as did the ambiguity in the bequest.