In re the Guardianship of K.K.L., C.T.L., Q.C.L., and A.S.L. (minor children), Dorothy Denise Carroll (mem. dec.)

Indiana Court of Appeals·Decided April 26, 2016·No. 46A04-1507-GU-921·Published

Opinion

MEMORANDUM DECISION FILED

Pursuant to Ind. Appellate Rule 65(D), Apr 26 2016, 9:44 am this Memorandum Decision shall not be CLERK

regarded as precedent or cited before any Indiana Supreme Court Court of Appeals

court except for the purpose of establishing and Tax Court

the defense of res judicata, collateral estoppel, or the law of the case.

ATTORNEYS FOR APPELLANT Larry G. Evans Kevin G. Kerr Hoeppner Wagner & Evans, LLP Valparaiso, Indiana

IN THE

COURT OF APPEALS OF INDIANA

In re the Guardianship of April 26, 2016 K.K.L., C.T.L., Q.C.L., and Court of Appeals Case No. A.S.L. (minor children), 46A04-1507-GU-921 Appeal from the LaPorte Circuit Court

Dorothy Denise Carroll The Honorable Thomas J.

Appellant. Alevizos, Judge Trial Court Cause No.

46C01-1212-GU-77

Mathias, Judge.

[1] Dorothy Denise Carroll (“Carroll”) appeals the order of the LaPorte Circuit Court removing her as guardian of the estates of K.K.L., C.T.L., Q.C.L., and A.S.L. (collectively “the Children”) and trustee over the Children’s trusts. On Court of Appeals of Indiana | Memorandum Decision 46A04-1507-GU-921 | April 26, 2016 Page 1 of 18 appeal, Carroll claims that the evidence does not support the trial court’s decision to remove her as guardian of the Children’s estates and that the trial court erred by removing her as trustee without giving her notice or an opportunity to be heard on this issue.

[2] We reverse.

Facts and Procedural History [3] This case involves the children of John Larkin (“Larkin”) and Stacey Larkin (“Stacey”). As we explained in a previous appeal:

On December 11, 2012, police were dispatched to Larkin’s residence following a report of a shooting. When an officer arrived, he found Larkin’s wife, [Stacey], deceased in the closet.

An autopsy later determined that she died from two gunshot wounds.

Larkin v. State, 43 N.E.3d 1281, 1283 (Ind. Ct. App. 2015). Larkin was subsequently charged with voluntary manslaughter.

[4] Carroll is Larkin’s sister and the Children’s aunt. Carroll is an attorney licensed to practice law in Illinois. She works for the Chicago Park District and manages bond expenditures. Shortly after Stacey’s death, Carroll petitioned the trial court to serve as guardian of the persons and estates of the Children. The trial court granted this petition and issued an order on April 11, 2013, stating in relevant part that Carroll “shall serve [as guardian] upon taking an oath and without posting bond.” Appellant’s App. p. 13. Carroll filed her acceptance and

oath on May 29, 2013, and the trial court subsequently issued letters of Court of Appeals of Indiana | Memorandum Decision 46A04-1507-GU-921 | April 26, 2016 Page 2 of 18 guardianship the following day. Carroll was also granted legal and physical custody of the Children.

[5] On August 29, 2014, Carroll petitioned the trial court to establish living trusts for the benefit of the Children. The trial court granted the petition to establish the trusts, and Carroll was appointed as trustee. Thus, Carroll was serving as both guardian of the Children’s persons and estates and as trustee of their individual trusts. Larkin disclaimed any interest he had in the proceeds of his late wife’s insurance policy, and the trusts were funded with $253,424.66 each from the proceeds of the policy.

[6] On May 3, 2013, Carroll, Larkin, Stacey’s parents Scott and Tracy Simon (“the Simons”), and the Department of Child Services (“DCS”) filed a joint stipulation regarding the care and custody of the children. The stipulation provided among other things: (1) that the Children should be reunited with their father because they “want to be with him and need the support of a parent after having lost the other parent,” (2) that Larkin should participate in family therapy with the Children, (3) that the Children should continue with individual therapy, and (4) that the parties all agreed with the recommendation of the therapist that Larkin return to his residence with the Children. Appellant’s App. pp. 19-22.

[7] Stacey’s will designated as alternate personal representative Anne Larkin Tuomey (“Tuomey”). Tuomey is Larkin’s sister and thus Stacey’s sister-in-law and lives in Massachusetts. On June 20, 2013, Tuomey appointed Carroll as her

Court of Appeals of Indiana | Memorandum Decision 46A04-1507-GU-921 | April 26, 2016 Page 3 of 18 resident agent, listing the Larkin family home as Carroll’s address. After being appointed as guardian and trustee in early 2013, Carroll took time off from work under the federal Family and Medical Leave Act (“FMLA”) and began to live with the Children at their family home for approximately thirteen weeks. She then began to see the Children less frequently but still approximately ten times per month.

[8] On March 18, 2015, Carroll filed a verified petition seeking to obtain the trial court’s approval to purchase the Children’s family home from Larkin. The petition alleged that Larkin was having financial difficulties because he was unable to obtain employment due to a pending charge of voluntary manslaughter arising from Mother’s death. The petition also alleged that, because of this charge, the home was on the verge of foreclosure. An appraiser’s report valued the home at $850,000 for the real property alone. Carroll negotiated a price of $650,000 to purchase the home and all of its contents, including furniture. In exchange for permission to continue to live in the home, Larkin also agreed to pay property taxes, insurance, and utilities totaling over $1,200 per month. Even though the trust document contained no requirement that Carroll seek trial court approval of the purchase, she sought such approval because the transaction involved her brother.

[9] The trial court held a hearing on Carroll’s petition on May 13, 2015. Counsel for the Simons also appeared at the hearing and stipulated that the Children had been raised in the home and that it was in the best interests of the Children to remain in the home. The Simons, however, stated that they had insufficient Court of Appeals of Indiana | Memorandum Decision 46A04-1507-GU-921 | April 26, 2016 Page 4 of 18 information to determine whether purchasing the home from Larkin was in the best financial interests of the Children.

[10] Carroll presented the testimony of Toni Henke-Wheeler (“Henke-Wheeler”), who provided family and individual counseling to the Children. Henke- Wheeler testified that the Children were dealing with grief stemming from the death of their mother, their father’s alleged role in the death of their mother, and the perceived “loss” of their mother during the latter part of her life due to her substance abuse problems. When Henke-Wheeler referred to the “alleged” role Larkin played in the death of the Children’s mother, the trial court interrupted her and stated:

So is the — the involvement isn’t alleged. The nature of the involvement is what’s at issue. Is that my understanding of the criminal case? So you don’t need to [use] alleged there.

Tr. pp. 10-11. Henke-Wheeler was then cross-examined by Larkin’s counsel, who asked the question, “Given the fact that the children now only have one parent, their father, in your opinion, if he is removed from their presence, what impact would his absence have on the children?” Tr. p. 14. Before Henke- Wheeler could respond, the trial court objected sua sponte, stating “It’s irrelevant. You don’t have to object. It’s irrelevant.” Id.

[11] The court then denied the petition from the bench, stating, “The Court denies the request. There are adequate places you can rent, buy, purchase to stay in the same neighborhood and in the same schools.” Id. at 16. The trial court

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In re the Guardianship of K.K.L., C.T.L., Q.C.L., and A.S.L. (minor children), Dorothy Denise Carroll (mem. dec.), (Ind. Ct. App. 2016).

In re the Guardianship of K.K.L., C.T.L., Q.C.L., and A.S.L. (minor children), Dorothy Denise Carroll (mem. dec.) (In re the Guardianship of K.K.L., C.T.L., Q.C.L., and A.S.L. (minor children), Dorothy Denise Carroll (mem. dec.)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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