Famed rock singer, Tom Petty, passed away in 2017. Nearly two years later his widow, Dana York Petty, and his daughters from a previous marriage, Adria and Annakim Petty, remain embroiled in a legal dispute over the musician’s estate. In the petition filed with the probate court in Los Angeles, California, Dana asserts her authority as the sole trustee of Petty’s trust. This issue does not appear to be in dispute; however, Petty’s daughters contend they have full authority to manage Petty’s catalogue of music recordings. Despite Petty’s efforts to avoid such a dispute by creating a trust with directives for managing its assets, Petty’s widow and daughters disagree…
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Congratulations to Trey Lindley and Satie Munn
Lindley Law is pleased to announce Trey Lindley was selected as a 2019 Super Lawyer in Estate and Trust Litigation by Super Lawyers Magazine, making this his eighth consecutive honor from the publication. Lindley Law is also pleased to announce Satie Munn was selected as a 2019 Rising Star in Business Litigation by Super Lawyers Magazine, her first such honor from the publication. Super Lawyers Magazine recognizes outstanding attorneys using a multi-step process that involves soliciting nominations from attorneys across North Carolina (lawyers are not allowed to vote for themselves), a third-party evaluation across 12 key categories, and a peer evaluation by a highly credentialed panel of attorneys. Finalists have attained a high…
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Breach of Trustees’ Fiduciary Duty – Part 3: Duty to Administer Trusts Prudently and Duty to Inform, Report, and Maintain Adequate Records
In Part 2 of this series, we examined trustees’ duties of loyalty and impartiality. This post will examine the duty to administer trusts prudently and Part 4 will discuss the duty to delegate – or not delegate – in more depth. The duty to administer trusts involves the basic values of good faith, while the duty to inform, report, and maintain adequate records involves the reasonableness of a trustee’s actions. While these principals seem straight forward, they are a bit nuanced in practice. Duty to Administer Trusts Prudently The duty to administer trusts prudently mandates trustees carry…
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Breach of Trustees’ Fiduciary Duty – Part 1: General Considerations
This is the first of a four-part series examining trustee’s fiduciary duties and the circumstances that could result in litigation. To begin, we will discuss basic principles that will lay a groundwork to inform our larger discussion. What is a Trust and a Trustee?[1] A trust is a financial instrument or tool through which people can transfer their assets to others over time. People who create trusts are called “settlors,” because they “settle” or initially put assets into the trust. Those who stand to benefit from the assets in the trust are known as “beneficiaries.” The person…
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Six Basic Questions and Answers about Executors
If you have a will or have ever dealt with estate administration, you are probably familiar with the term “executor.” However, most people don’t know what an executor is or what the executor’s role is. Additionally, what do you do if you suspect an executor is behaving fraudulently or contrary to the deceased person’s wishes? What is an executor? An executor is a person or institution appointed to carry out the terms of a person’s will. They are appointed by the person who wrote the will, the testator, to conclude the business and financial arrangements the testator had…
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North Carolina Court of Appeals Clarifies Reach of Clerk of Court’s Original Jurisdiction
A recent decision by the North Carolina Court of Appeals reinforced the distinction between claims over which the trial divisions have original jurisdiction and claims which are properly brought before the Clerk of Court.[1] In Morgan-McCoart v. Matchette, an elderly woman, Ms. Simpson, created a revocable trust and executed a Durable Power of Attorney in 2008. Her daughter, Julie, was named as her trustee and attorney-in-fact, and her other daughter, Claudia, was named as the alternate trustee and attorney-in-fact. Ms. Simpson was declared incompetent in 2009. Julie lived in California, making it difficult to fulfil her duties. Accordingly, Julia…
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On Mandating Trustees’ Duty to Inform and Report
Twenty-three years ago, Clark “CB” Bagby, Jr. assumed control of his father’s already successful demolition and grading company and grew it into one of the largest in the Southeast. Only one of his four children showed any promise or passion for the family business, the others content to enjoy its fruits. CB, the sole shareholder of the eponymously named CBDG, Inc., is acutely aware of his need for succession planning and is equally determined to make it as painless for himself as possible. “I want them to know I’ve taken care of them, but I don’t want to be pestered about what I gave them, whether it’s enough, or…
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Creating a Successful Wealth Management Plan: Is a Corporate Trustee Right for You?
As the aging baby boomer generation reaches retirement age and beyond, their wealth management decisions will significantly influence the demand for fiduciary services. Twenty-first century technology makes it easier than ever to retrieve up-to-date financial information and self-help investment guides. Accordingly, baby boomers and subsequent generations are more financially sophisticated than their parents, and increasingly responsible for their own savings, income, and financial future. While many “boomers” feel comfortable managing their own assets, they are almost three times more likely to appoint a corporate trustee to manage wealth and inheritance for future generations.1 Motivations behind this decision include the increasing complexity of wealth management, reluctance…
