In re: Bernard Charles Seidling

CourtUnited States Bankruptcy Court, W.D. Wisconsin
DecidedMarch 18, 2026
Docket1-22-11191
StatusUnknown

This text of In re: Bernard Charles Seidling (In re: Bernard Charles Seidling) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Bernard Charles Seidling, (Wis. 2026).

Opinion

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Hon. Rachel M. Blise United States Bankruptcy Judge UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF WISCONSIN

In re: Case No. 22-11191-rmb Bernard Charles Seidling, Chapter 7 Debtor.

DECISION AND ORDER SUSTAINING DEBTOR’S OBJECTION TO CLAIM NO. 13 OF THE ESTATE OF DOUGLAS THAKE

Debtor Bernard Seidling purchased real property from Amanda Taylor, one of five heirs of Douglas Thake, via warranty deed. The Estate of Douglas Thake (the “Estate’) filed a proof of claim in Seidling’s bankruptcy case asserting that Seidling is liable for civil theft and seeking the value of the property, plus punitive damages and attorney’s fees and costs. The Estate contends that Taylor’s transfer of the property to herself through a Transfer by Affidavit was invalid, as was Taylor’s transfer of the property from herself to Seidling. Seidling’s objection to the claim presents the legal issues whether a single heir can use the Transfer by Affidavit procedure outlined in section 867.03 of the Wisconsin Statutes to take legal title to real property and whether that heir can transfer the real property to a third party.

The Court concludes that the Transfer by Affidavit was valid under section 867.03, and that Taylor had the ability to transfer the property at issue to Seidling. Therefore, Seidling is not liable for civil theft under the theory presented by the

Estate, and the Estate’s claim must be disallowed. BACKGROUND The following facts appear to be undisputed. Douglas Thake died intestate on November 15, 2015. Thake was divorced and had five adult children, including Amanda Taylor. Under the Wisconsin intestacy rules, any property in Thake’s estate should have been distributed equally among the five heirs. See Wis. Stat. § 852.01(b). At the time of his death, Thake was the sole owner of the real property

located at 10136 Olker Rd., Hayward, WI 54843 (the “Property”). The parties identified no other assets of any value in Thake’s estate. On April 11, 2016, Taylor executed and recorded a “Transfer by Affidavit ($50,000 and under)” with the Register of Deeds for Sawyer County, Wisconsin. A Transfer by Affidavit may be used to transfer property “when a decedent leaves property subject to administration in [Wisconsin] that does not exceed $50,000.”

Wis. Stat. § 867.03(1g). The parties do not appear to dispute that the value of the Property, together with any other assets owned by Douglas Thake, was $50,000 or less.1

1 In its proof of claim, the Estate asserts that the Property was worth $87,000 on the petition date in 2022. While the Estate does argue that the Transfer by Affidavit was invalid, the Estate does not assert that it is invalid because the value of Thake’s estate was more than $50,000 in 2016 when Taylor executed and recorded the Transfer by Affidavit. The Court therefore has assumed that the Estate agrees the value of the Property was less than $50,000 in 2016. On June 28, 2017, Taylor executed a Warranty Deed through which she conveyed the Property to LCO Trust II. This Court previously held that LCO Trust II is the alter ego of Seidling, and that Seidling owns all property titled in the name

of LCO Trust II. See Block v. Seidling (In re Seidling), Adv. No. 23-00032-rmb, 2024 WL 3934127, *23 (Bankr. W.D. Wis. Aug. 23, 2024). Seidling says she received “valuable consideration,” though the consideration she received is unclear. It may be that Seidling gave Taylor a discount on her purchase of different real property from him as a sort of trade. See Dkt. No. 634 at 1. The Estate does not argue that the transfer to LCO Trust II was void for lack of consideration.

On June 10, 2018, Seidling entered an Option to Purchase Trust with Chad Raasch, pursuant to which he purported to convey to Raasch an option to purchase LCO Trust II. The same day, Seidling and Raasch signed a Rental/Lease Agreement for the Property. Neither agreement with Raasch was recorded. On April 27, 2021, Seidling transferred the Property to Florida Land Trust. He transferred the Property back to LCO Trust II on August 16, 2021. The reasons for these transfers are unknown.

In February 2021, one or more of Thake’s other children opened a probate proceeding in Sawyer County, Wisconsin, Case No. 2021PR000015. On August 23, 2021, the Estate sued Taylor, Raasch, Seidling, LCO Trust II, Florida Land Trust, and several other entities with a potential interest in the Property in Sawyer County, Wisconsin Circuit Court, Case No. 2021CV000115. The Estate sought a declaratory judgment that the Transfer by Affidavit transferring the Property to Taylor was ineffective and that title to the Property remained with the Estate. Seidling filed a chapter 11 bankruptcy petition on July 26, 2022, and the case

was converted to chapter 7 on October 3, 2022. On May 9, 2023, the Estate filed a proof of claim that the Clerk assigned as Claim No. 13. The Estate filed an amended claim on October 28, 2024, which is listed in the Claims Register as Claim 13-3. The Estate claims that it is owed a total of $528,970.52. According to the Estate, Seidling committed civil theft under Wis. Stat. § 943.20 in receiving the Property. The Estate says the Property was worth $87,000 on the petition date, and

that Seidling is liable for that amount. The Estate also seeks punitive damages in the amount of $261,000 (three times the value of the property) and attorney’s fees and costs of $180,970.522 pursuant to Wis. Stat. § 895.446. Seidling objected to the Estate’s claim, and his objection was amended several times. In the amended objection filed on December 26, 2023, Seidling asserts that LCO Trust II validly purchased the Property from Taylor, and that the value of the Property was only $2,500 in 2017 when Taylor transferred the Property

to LCO Trust II. Dkt. No. 472. The Court ordered briefing on the claim objection and received briefs from the Estate and Seidling. Dkt. Nos. 826, 883, 901, 917, 947, 1190, 1205. The Court also

2 The basis for the remaining $180,970.52 of the claim is unclear. None of the information filed with the claim indicates that the attorney’s fees and costs total that amount. A document that appears to be a ledger of attorney’s fees has a total of $112,995.52. Without a full explanation, the Court has presumed that the entire $180,970.52 is attributable to attorney’s fees and costs. held hearings on the objection on July 27, 2023; July 11, 2024; and July 24, 2025. Dkt. Nos. 359, 576, 1174. JURISDICTION

The Court has jurisdiction over this chapter 11 case and contested matter pursuant to 28 U.S.C. § 1334 and the order of reference from the district court pursuant to 28 U.S.C. § 157(a). See General Order No. 161 (W.D. Wis. June 12, 1984) (available at https://www.wiwd.uscourts.gov/administrative-orders) (last visited March 17, 2026). This matter is a core proceeding because it involves allowance of claims

against the estate. 28 U.S.C. § 157(b)(2)(B). In addition, the Estate’s claim and Seidling’s objection to that claim implicate issues related to whether the Property is part of the bankruptcy estate.

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In re: Bernard Charles Seidling, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-bernard-charles-seidling-wiwb-2026.