In Re Conservatorships of T.L.R.

375 N.W.2d 54, 1985 Minn. App. LEXIS 4619
CourtCourt of Appeals of Minnesota
DecidedOctober 8, 1985
DocketC8-85-878
StatusPublished
Cited by7 cases

This text of 375 N.W.2d 54 (In Re Conservatorships of T.L.R.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Conservatorships of T.L.R., 375 N.W.2d 54, 1985 Minn. App. LEXIS 4619 (Mich. Ct. App. 1985).

Opinion

OPINION

HUSPENI, Judge.

Appellant conservator appeals from an order that removed her as conservator of her children’s estates, declared her bond forfeited, and appointed the Commissioner of Veterans Affairs of the State of Minnesota as substitute conservator. Judgment of $12,875 was entered in favor of the new conservator and against appellant. Appellant contends that the trial court abused its discretion when it: (1) removed her as conservator, (2) ordered forfeiture of the bond, (3) did not offset the bond against the judgment, and (4) determined the amount of the judgment without deducting certain expenditures. We affirm as modified.

FACTS

T.L.R., C.A.R. and D.M.R., beneficiaries of their deceased father’s life insurance policy, each received $4,666.66 upon his death. The children also receive monthly Veterans Administration and Social Security benefits.

The children’s mother petitioned the Wright County Probate Court to name her conservator of the children’s estates. On November 7, 1983, the probate court ordered that:

*56 1. [Appellant] * * * be appointed Conservator herein.
3. That a minor settlement fund be established with the three children’s life insurance, accounts of about $4,666.66 each, to be used only for the benefit of the children, and withdrawals only upon Court Order, with [appellant] Conservator as Trustee, as in a minor settlement account with the balance of each child’s share of interest and principal going to each child unless otherwise Court ordered, upon each becoming age eighteen.
4. That for a period of 12 months following this hearing, that is until October 25, 1984, unless otherwise ordered by this Court, Conservator will (on a quarterly basis) give a quarterly report (on the basis of a mini-annual report) to her attorney, Mr. Heffernan, in addition to the regular annual reports, and he shall submit said reports to Attorney West. Said reports shall contain the flow chart of income and expenses dealing with proceeds obtained and expended from monthly Social Security survivorship benefits Conservator shall use for the benefit of the children.
5. A bond shall be posted in the amount of $10,000 during the pendency of this Conservatorship.
6. Either party reserves the right to apply to the Court for additional and further relief herein.

Counsel for appellant during the conserva-torship proceedings was Donald J. Heffer-nan. In re Heffernan, 351 N.W.2d 13 (Minn.1984).

Appellant failed to file an inventory of the assets of the conservatorship as required by Minn.Stat. § 525.561 (1984). No court order authorizing any expenditures of the insurance funds was requested or issued. No quarterly reports were filed.

Annual accounts were filed with the probate court on January 29, 1985. The accounts show that in addition to the $4,666 insurance fund, each child received $4,806 in Veterans and Social Security benefits over a fifteen-month period. There was a deficit balance in each child’s insurance fund account on January 29, 1985.

On February 6, 1985, the Wright County Probate Court, on its own motion, issued an order for examination of the conservator’s annual account. The court also gave notice of a hearing to show cause why appellant should not be removed as conservator and why her bond should not be forfeited. No testimony or formal evidence was submitted at that April 12, 1985 hearing. Documentary evidence of expenditures made on behalf of the children was filed with the court subsequent to the hearing. Counsel for the conservator, the guardian ad litem for the conservatees, counsel for the Veterans Administration, and counsel for the bonding company presented arguments at the hearing.

The court found that the conservator had violated her fiduciary duty, failed to comply with court orders, and failed to account for the funds. The court specifically found that $14,000 (the amount of the insurance fund) was expended without court approval, and that the accounts contained expenditures “not properly attributable to the expenses of maintaining such children.”

The court ordered the conservator removed. The Commissioner of Veterans Affairs of the State of Minnesota was appointed conservator. The court further ordered that the $10,000 bond be forfeited and paid to the new conservator. The court ordered judgment of $14,000 against appellant in favor of the new conservator, less any amounts that the court later determined to be allowable expenses. Appellant was allowed two weeks to file proof of those expenses with the court. Subsequently, the probate court found as an allowable expense $1,125 which had been used for the children’s dental work. Judgment of $12,875 was entered May 10, 1985.

ISSUES

1. Did the probate court abuse its discretion when it ordered appellant removed as conservator?

*57 2. Did the probate court err in ordering the bond forfeited?

3. Did the probate court properly enter judgment against appellant and determine the allowable expenditures made by her?

4. Did the probate court err in failing to reduce the judgment by the amount of the bond?

ANALYSIS

I.

Chapter 525 of the Minnesota Statutes governs guardianships and conserva-torships. Minn.Stat. § 525.582(d) (1984) provides:

If a guardian or conservator becomes unsuitable, incapacitated or disabled, or violates his trust or fails to perform any duty imposed on him by law or the lawful order of the court, the court upon petition or the courts’ own motion may remove him after notice.

Appellant does not dispute that she expended funds without court approval or that no quarterly reports were filed as required by the probate court’s order. The court was authorized by statute to remove appellant as conservator and it did not abuse its discretion in doing so.

II.

Minn.Stat. § 525.551, subd. 6 (1984) provides in part:

In case of breach of a condition of the bond an action thereon may be prosecuted by leave of the court by any interested person or by the court on its own motion.

Bond was required to secure performance of the conservator’s fiduciary duties. “Fiduciary” includes personal representative, guardian, conservator and trustee. Minn. Stat. § 524.1-201(13) (1984).

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Related

In Re the Guardianship of Nelson
547 N.W.2d 105 (Court of Appeals of Minnesota, 1996)
Morris v. Hennepin County Welfare Board
524 N.W.2d 504 (Court of Appeals of Minnesota, 1994)
In Re Conservatorship of Lundgaard
453 N.W.2d 58 (Court of Appeals of Minnesota, 1990)
In Re Conservatorship of Kocemba
429 N.W.2d 302 (Court of Appeals of Minnesota, 1988)
Matter of Estate of Weber
418 N.W.2d 497 (Court of Appeals of Minnesota, 1988)
In Re Conservatorship of Moore
409 N.W.2d 14 (Court of Appeals of Minnesota, 1987)
In Re Conservatorship of W.R.L.
396 N.W.2d 705 (Court of Appeals of Minnesota, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
375 N.W.2d 54, 1985 Minn. App. LEXIS 4619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-conservatorships-of-tlr-minnctapp-1985.