In Re: Conservatorship of Lila M. Trout

CourtCourt of Appeals of Tennessee
DecidedOctober 15, 2009
DocketW2008-01530-COA-R3-CV
StatusPublished

This text of In Re: Conservatorship of Lila M. Trout (In Re: Conservatorship of Lila M. Trout) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re: Conservatorship of Lila M. Trout, (Tenn. Ct. App. 2009).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT JACKSON February 19, 2009 Session

IN RE CONSERVATORSHIP OF LILA M. TROUT

An Appeal from the Probate Court for Shelby County No. D-3289 Robert Benham, Judge

No. W2008-01530-COA-R3-CV - Filed October 15, 2009

This appeal involves a conservatorship. When the respondent was eighty-three years old, her sister died and left the respondent over $200,000. The bulk of the inheritance was placed in an irrevocable trust for the respondent’s benefit, and the deceased sister’s former attorney was appointed as the trustee. Soon, the respondent began to spend her inheritance at a rapid rate, with much of the spending benefitting her daughter and her daughter’s boyfriend. The respondent then purchased a $200,000 home to live in with her daughter and her daughter’s boyfriend, with the expectation that the $1,800 monthly mortgage would be paid out of the trust. The attorney trustee sought to meet with the respondent and her daughter to establish a budget, but they refused to meet. The trustee then discovered that, in a short period of time, the respondent had amassed substantial credit card debt and had significantly depleted her certificates of deposit. The trustee filed the instant petition to establish a conservatorship over the person and the estate of the respondent. The trial court appointed a guardian ad litem and held a hearing on the petition, in which the respondent testified. During her testimony, the respondent requested an attorney to represent her. The trial court did not do so and continued with the hearing. After the hearing, the trial court established a conservatorship over the person and the property of the respondent. The respondent now appeals, arguing, inter alia, that the trial court erred in refusing to appoint an attorney ad litem upon her request, that the trial court erred in finding the evidence sufficient to establish a conservatorship over her person and property, and that, alternatively, the trial court erred in failing to restrict the conservatorship to her property. We affirm the trial court’s decision in all respects.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Probate Court is Affirmed

HOLLY M. KIRBY , J., delivered the opinion of the Court, in which ALAN E. HIGHERS, P.J., W.S., and J. STEVEN STAFFORD , J., joined.

F. Auston Wortman, III, and Terry C. Cox, Collierville, Tennessee, for the appellant, Lila M. Trout.

Lynn W. Thompson, Memphis, Tennessee, for the appellees, Thomas R. Buckner and Dorothy Bobo, Conservator of the Estate of Lila Trout.

OPINION FACTUAL BACKGROUND

When Doris McCaslin (“Ms. McCaslin”) engaged her long-time attorney Thomas R. Buckner to draft her will, she designated her elderly sister, Respondent/Appellant Lila M Trout (“Ms. Trout”) as her sole beneficiary. At the time, Ms. McCaslin expressed to Buckner her concern that one of Ms. Trout’s daughters, Susan Stevens (“Susan”), might take financial advantage of her mother. Susan had limited earning capacity, and she quit working altogether in December 2000 because of mental problems and drug and alcohol addictions.

Ms. McCaslin died on January 11, 2003, when Ms. Trout was eighty-three years old. Ms. Trout received $208,000 from Ms. McCaslin’s estate. Out of respect for Ms. McCaslin, Buckner explained Ms. McCaslin’s concerns about Susan to Ms. Trout and advised her that she could protect her inheritance by putting the money in a trust for her own benefit.

At the time, Ms. Trout agreed that a trust for her protection was appropriate. Therefore, on July 1, 2003, $163,000 of her inheritance was placed in the Lila M. Trout Irrevocable Trust for the use and benefit of Ms. Trout (“the irrevocable trust”). Buckner was designated as the trustee and was the sole signatory on this trust. Of the remainder of Ms. Trout’s inheritance, $15,000 was paid directly to Ms. Trout, and $30,000 was placed in certificates of deposit in Ms. Trout’s name. In addition, Ms. Trout and Ms. McCaslin had shared ownership in a joint checking account with a $30,000 balance; this passed directly to Ms. Trout outside of probate.1 The checking account and the certificates of deposit were held in a revocable trust for the use and benefit of Ms. Trout in order to avoid probating these items upon Ms. Trout’s death. Ms. Trout was the sole signatory on the revocable trust. A third trust for Ms. Trout’s other daughter, Cecelia Caldwell, referred to as the Cecelia Caldwell Trust, was established in late 2004 with $9,900 from the irrevocable trust. The Cecelia Caldwell Trust was established in order to equalize distributions to Ms. Trout’s daughters; whenever Ms. Trout made payments to or on behalf of Susan, an equal amount was to be put into the Cecelia Caldwell Trust. However, Ms. Trout was the beneficiary of the Cecelia Caldwell Trust during her lifetime, so these funds would be available to her if the need arose. Buckner was the sole signatory on the Cecelia Caldwell Trust as well.

Shortly after the irrevocable trust was established, Buckner began receiving numerous requests from Ms. Trout for cash from the corpus of the trust. Buckner paid some of Ms. Trout’s bills directly from the trust, such as rent and utilities. Buckner also distributed about $300 per month to Ms. Trout for incidentals; he received little information about how the incidental money was used.2

1 When M s. McCaslin died, Susan and Ms. Trout’s other daughter, Cecelia Caldwell, were added as signatories on the account. This was done so that the proceeds in the account would pass to the daughters outside of probate upon Ms. Trout’s death. 2 The amount of cash given to M s. Trout for incidentals each month is somewhat unclear, but it appears that she received about $300 cash per month.

-2- During this time, Susan lived in the apartment next door to Ms. Trout. Susan shared the apartment with her long-time boyfriend, Steve Hawks (“Hawks”). At Ms. Trout’s request, Buckner agreed to pay Susan’s rent of $738 per month from the irrevocable trust, because Susan was caring for Ms. Trout’s needs. In 2004, Buckner used $17,000 from the irrevocable trust to purchase a vehicle for Ms. Trout so that Susan could take Ms. Trout to her appointments, because Ms. Trout did not drive. Within the year, however, the car was wrecked (through no fault of Ms. Trout or Susan), and the insurance company paid out the total value of the car. Buckner was never informed to whom the insurance check was written or how that money was spent. Later, without Buckner’s knowledge, Ms. Trout financed another vehicle; Buckner learned of it when the financing company contacted him to arrange to receive the monthly note payments out of the irrevocable trust.

At the same time, Buckner became aware that the money in the revocable trust, under the control of Ms. Trout, was being spent as well. When Buckner inquired of Ms. Trout and Susan regarding how Ms. Trout’s money was being used, he did not receive a response.

In light of these occurrences, Buckner became concerned that Ms. Trout’s assets were being consumed so rapidly that she would not have sufficient funds to meet her needs during her lifetime. Therefore, as trustee of the irrevocable trust, Buckner contacted Ms. Trout and Susan to schedule a meeting to discuss a budget and a reduction of the monetary outlay, in order to ensure that Ms. Trout’s assets would be conserved for her needs. Ms. Trout and Susan did not cooperate with Buckner’s request, and the meeting never happened. According to Buckner’s records, between October 2003 and June 2005, nineteen meetings were scheduled and were either canceled or simply not attended by Ms. Trout and Susan.

In early 2007, Buckner learned that Ms. Trout had purchased a home in Lakeland, Tennessee, for $212,500, complete with a 30-year mortgage and a note of over $1,800 per month.

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Bluebook (online)
In Re: Conservatorship of Lila M. Trout, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-conservatorship-of-lila-m-trout-tennctapp-2009.