Centennial Bank v. Powell

Filing 309

ORDER: The Court appreciates the parties' joint status report, 308 . The Court notes and approves Centennial's dismissal of the case against The First National Bank of Lawrence County. The Court appoints G.S. Brant Perkins as co-trustee of the Survivor's Trust of the Elijah and Mary Stiny Trust dates 6/6/2000, as amended, on the terms outlined in his 6/7/2019 letter, No. 308 -1 at 5. Confirming report from Centennial Bank on payments anddelivery due by 7/31/2019. Lilly should al so be in a position to account for Stiny's final medical expenses and funeral expenses by that date. If there are any excess funds, Lilly should deposit them in Bank of America account No. xxxxx-5307. Further report from Wood on trust-related a ttorney's fees also due by 7/31/2019. Proposed bond due by 8/30/2019. Report from Wood and Perkins on notice to potential beneficiaries due by 8/30/2019. Report on tax issues also due by 8/30/2019. Signed by Judge D. P. Marshall Jr. on 7/1/2019. (jak)

IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF ARKANSAS
JONESBORO DIVISION
CENTENNIAL BANK,
Guardian of the Estate of Mary
Moore Stiny

PLAINTIFF

No. 3:17-cv-226-DPM

v.

RENA WOOD

DEFENDANT
ORDER

The Court appreciates the parties' joint status report, NQ 308. The
Court will address the pending issues in the same order as the parties.
1. The Court notes and approves Centennial' s dismissal of the

case against The First National Bank of Lawrence County.
2. The Court appreciates the contact list for potential remainder

beneficiaries.
3. The Court is glad to hear that all the roof-related repairs on the

house at 502 Old Pocahontas Road in Walnut Ridge, Arkansas have
been made.
4. For the reasons stated on the record at the end of the trial, to

implement this Court's Judgment, NQ 295, and pursuant to CAL. PROB.
CODE § 15660(d), the Court appoints G.S. Brant Perkins as co-trustee of
the Survivor's Trust of the Elijah and Mary Stiny Trust dated June 6,
2000, as amended, on the terms outlined in his 7 June 2019 letter,

NQ 308-1 at 5. As the Court declared, NQ 295, Rena Wood remains cotrustee of the Survivors Trust.

The Court appreciates Perkins's

willingness to serve. The Court confirms that Wood and Perkins must
agree on all Trust-related actions. And the Court directs that they must
seek Court approval before making any payment or expenditure in
excess of $25,000.

In accordance with Article 12 of the Trust, and

California law, CAL. PROB. CODE§ 15602, Perkins must post a surety
bond.

All

material

things

considered,

including

the

payment/ expenditure limitation, a $100,000 bond will be sufficient to
protect the beneficiaries' interests. The cost of the bond is an expense
chargeable to the Trust. CAL. PROB. CODE§ 15602(d). Perkins must file
the proposed bond by 30 August 2019.
5 & 6. The Court agrees that the guardianships of Mrs. Stiny' s
person and estate should be ended. The Court relieves Joyce Roberts
as the guardian of Mrs. Stiny' s person.

The Court approves

Centennial's final accounting, NQ 308-1 at 10-16. The Court approves
Centennial's final fee request, NQ 308-1 at 20. And the Court approves
Lyons & Cone's reasonable attorney's fees and expenses for
guardianship-related work, NQ 308-1 at 21. Centennial's embedded
motions covering all this ground are granted. The Court authorizes
Centennial to pay itself and its lawyers, deliver all Mrs. Stiny' s property
to the personal representative of her estate, and execute all documents
necessary to effectuate that delivery. Centennial should file a short
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confirming report by 31 July 2019. The Court thanks Centennial, and
its lawyers, for their service on behalf of Mrs. Stiny.
7.

The Court understands that other matters have occupied

Wood's time in recent weeks. The Court notes Wood's confirmation
that the Trust did not pay any part of the attorney's fees she incurred
in trust-related litigation. Further report on these fees due by 31 July
2019.

The Court would appreciate a comprehensive filing, which

gathers in one place all fee-related documents.
8. The Court notes and approves the $252,694.23 deposit in Bank

of America account No. xxxxx-5307 by Linder & Associates.
9. The Court appreciates the report on the Chase Bank account.

10. The Court also appreciates the report on the Exemption Trust.
This Trust needs administration, too. There is, however, no current
trustee. For coordination with the Survivor's Trust, efficiency, and
other good cause, and pursuant to CAL. PROB. CODE § 15660(d), the
Court appoints Rena Wood and G.S. Brant Perkins as co-trustees of the
Exemption Trust (and any sub-trusts into which it may eventually be
divided) of the Elijah and Mary Stiny Trust dated June 6, 2000, as
amended. These appointments are subject to the right of any remainder
beneficiary to object in due course after notice. As with the Survivor's
Trust, the co-trustees of the Exemption Trust must act with unanimity
and seek Court approval before making any payment or expenditure
in excess of $25,000. Perkins's $100,000 surety bond must also cover his
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work as co-trustee of the Exemption Trust (and any subtrusts). The
Court directs Wood and Perkins to confer and propose a plan for
notifying the potential remainder beneficiaries.

11. The Court appreciates the report of good progress on the tax
issues. The Court previously approved engaging CPA Dean Fredgant
of SingerLewak to prepare the returns. NQ 129 & 125. Fredgant now
works for SL Biggs, a division of SingerLewak. The Court directs the
Clerk of Court to pay SL Biggs c/ o Dean L. Fredgant $5,000 as an
additional retainer. The Court authorizes Wood and Perkins to execute
the proposed engagement letter with SL Biggs, NQ 308-2 at

9-11, with these changes: All but the last sentence of the first paragraph
on page 3 must be deleted. The Court does not approve the proposed
limitations period, the punitive damages waiver, or the compensatory
damages limitation.

The Court specifically authorizes Wood and

Perkins to execute any needed IRS Form 2848, authorizing Fredgant
and SL Biggs to act as attorney-in-fact with the Service on any tax issue
related to any Stiny Trust or subtrust. Both co-trustees must review
and approve the tax returns before they' re filed.

And the Court

authorizes the co-trustees to direct any needed changes.
*

*

*

Confirming report from Centennial Bank on payments and
delivery due by 31 July 2019. Lilly should also be in a position to
account for Stiny' s final medical expenses and funeral expenses by that
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date. If there are any excess funds, Lilly should deposit them in Bank
of America account No. xxxxx-5307. Further report from Wood on
trust-related attorney's fees also due by 31 July 2019. Proposed bond
due by 30 August 2019. Report from Wood and Perkins on notice to
potential beneficiaries due by 30 August 2019. Report on tax issues also
due by 30 August 2019.
So Ordered.
D.P. Marshall Jr.
United States District Judge

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