In Re Guardianship of Phuong Phi Thi Luong

951 A.2d 136, 157 N.H. 429
CourtSupreme Court of New Hampshire
DecidedJuly 2, 2008
Docket2007-294
StatusPublished
Cited by8 cases

This text of 951 A.2d 136 (In Re Guardianship of Phuong Phi Thi Luong) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Guardianship of Phuong Phi Thi Luong, 951 A.2d 136, 157 N.H. 429 (N.H. 2008).

Opinion

DUGGAN, J.

The petitioners, the guardians of Phuong Phi Thi Luong, appeal orders of the Hillsborough County Probate Court (Patten, J.) rejecting two estate plans they proposed for Phuong Phi Thi Luong pursuant to RSA 464-A:26-a (2004) and adopting an alternative estate plan drafted by a court-appointed referee. We hold that the probate court was within its discretion to reject the estate plans proposed by the petitioners, but find that the court went beyond its authority in adopting the estate plan drafted by the court-appointed referee. Accordingly, we affirm in part, reverse in part, and remand.

I. Factual and Procedural Background

The record reveals the following facts: Phuong Phi Thi Luong (Phi) is a forty-four year old woman who was born in Vietnam and immigrated to the United States in 1994. In 2000, she married the respondent, William Walker, and, approximately one year later, gave birth to her only child, Catherine. In approximately 2002, Phi and Walker filed for divorce and Phi obtained temporary custody of their daughter.

On February 17,2003, while her divorce to Walker was still pending, Phi suffered irreparable brain damage during the course of elective surgery. As a result, she is now in a persistent vegetative state. Although she is able to breathe on her own, she is unresponsive to stimuli and must be fed artificially. Because she is unable to care for herself, she now resides at a facility where she can receive daily life-sustaining care.

Following Phi’s incapacitation, her youngest brother, Tan Luong, was appointed her sole guardian. As guardian, Tan Luong initiated a medical malpractice action on Phi’s behalf and, on September 8, 2003, filed a petition with the probate court requesting to have a will approved for Phi’s estate. See RSA 464-A:26-a, III. Pursuant to Tan Luong’s proposed will, Phi’s residuary estate would have been divided equally among Phi’s parents, a trust in Catherine’s name, and Phi’s siblings, including Tan Luong. Walker, who had obtained custody of Catherine through finalization of Phi and Walker’s divorce, objected to Tan Luong’s proposed will in his capacity as Catherine’s natural guardian. The probate court then appointed a guardian ad litem to represent Catherine’s interests in the matter.

However, before the probate court could consider Tan Luong’s petition, the attorney representing Phi in the civil suit, Mark A. Abramson, filed a motion requesting that Tan Luong be removed as guardian and a disinterested successor guardian be appointed. In that motion, Abramson asserted that he had obtained a substantial settlement offer from the defendants in *431 Phi’s suit, and that, “in spite [of] the fact that he has no legal right to any of the proceeds of the civil suit, . . . [Tan Luong] refuses to authorize settlement because he wishes to obtain personal monetary benefits to which he is not entitled.” In addition, Abramson stated that Tan Luong “refused to authorize settlement in an effort to force [Phi’s] ex-husband to agree that he, his siblings, and his parents are entitled to portions of the proceeds.”

The probate court never ruled upon Abramson’s motion. Instead, a stipulation was submitted to the court that permitted Tan Luong to select an attorney — to be approved later by the probate court — to serve as co-guardian. In accordance with that stipulation, Tan Luong interviewed attorney Joseph E. Mitchell for nearly two hours and, on June 23, 2004, filed a motion to have him appointed as Phi’s co-guardian. The probate court approved the motion on July 7,2004. With the addition of Mitchell as co-guardian, the civil suit was finally settled, resulting in a net realization of $4,964,823.31 to Phi’s estate.

On October 7,2004, Phi’s guardians filed a new petition with the probate court “requesting] that the court accept and approve” a revised estate plan. Unlike the estate plan submitted earlier by Tan Luong, the revised estate plan provided that, upon Phi’s death, a cash bequest of $400,000 would automatically be made to a trust in Catherine’s name. Tan Luong was named the sole trustee of the trust and would have had discretion to use “any income and principal [of the trust] for the support, education and care of Catherine.” Catherine would be entitled to all of the trust assets once she reached the age of twenty-five. However, if she passed away before reaching the age of twenty-five without issue, all of the trust assets would go to Phi’s parents and siblings. The residue of Phi’s estate was allocated as follows: (1) forty percent to Phi’s parents; (2) twenty percent to Phi’s siblings, including Tan Luong; and (3) an additional forty percent to Catherine’s trust.

Walker objected to the guardians’ revised estate plan and filed a notice of appearance. Catherine’s guardian ad litem joined in Walker’s objection. Accordingly, the probate court held a four-day hearing to consider evidence concerning the guardians’ petition. During those proceedings, the guardians submitted testimony from two Vietnamese attorneys in an attempt to demonstrate that the distributions provided for in the revised estate plan were “consistent with the cultural background, values and beliefs of citizens of Vietnamese origin.” Moreover, they solicited testimony from two of Phi’s acquaintances, and submitted evidence of prior gifts Phi had made to her parents and siblings, in an attempt to demonstrate that Phi would have adhered to those Vietnamese values in making her testamentary bequests.

*432 On October 19, 2005, the probate court issued an order rejecting the guardians’ revised estate plan. The court ruled, among other things, that the preponderance of the evidence did not demonstrate that the revised will either minimized taxation on Phi’s estate or provided for bequests that Phi would have made had she not been incapacitated. See RSA 464-A:26-a, I (explaining that, where a ward’s wishes cannot be ascertained, the probate court may authorize the guardian to develop an estate plan to “minimize taxation or to facilitate distribution of the ward’s estate to family, friends, or charities who would be likely recipients of gifts from the ward”). More specifically, the court stated:

The ward never made a will and never discussed her intentions, if she had formulated any before he[r] incapacity, regarding her desire to benefit her daughter, her parents or her siblings upon her death, and if so, in what proportions. As much as she was culturally attuned to her ethnic heritage, so too, she was a citizen of the U.S., living and working in the U.S. for many years, and part of the cultural fabric of the United States ....
As to the testamentary distribution plan being proposed, it was developed without any clear, specific understanding of the tax impact on the ward, or the present and potential impact on the beneficiaries of the ward under the plan, at present or potentially in the future. Further, the propose[d] distribution plan was apparently prepared without a determination of the present and potential future support obligations of the ward to her daughter being established and calculated, particularly in reference to the ward’s unique circumstances and long term medical needs. ...

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951 A.2d 136, 157 N.H. 429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-guardianship-of-phuong-phi-thi-luong-nh-2008.