In the Matter of the Estate of Jeannette Fenenbock Glenna Gaddy/Mark Fenenbock v. Mark Fenenbock/In the Matter of the Estate of Jeannette Fenenbock Glenna Gaddy

CourtCourt of Appeals of Texas
DecidedMarch 28, 2024
Docket08-23-00146-CV
StatusPublished

This text of In the Matter of the Estate of Jeannette Fenenbock Glenna Gaddy/Mark Fenenbock v. Mark Fenenbock/In the Matter of the Estate of Jeannette Fenenbock Glenna Gaddy (In the Matter of the Estate of Jeannette Fenenbock Glenna Gaddy/Mark Fenenbock v. Mark Fenenbock/In the Matter of the Estate of Jeannette Fenenbock Glenna Gaddy) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In the Matter of the Estate of Jeannette Fenenbock Glenna Gaddy/Mark Fenenbock v. Mark Fenenbock/In the Matter of the Estate of Jeannette Fenenbock Glenna Gaddy, (Tex. Ct. App. 2024).

Opinion

COURT OF APPEALS EIGHTH DISTRICT OF TEXAS EL PASO, TEXAS

IN THE MATTER OF THE ESTATE OF § No. 08-23-00146-CV JEANNETTE FENENBOCK GLENNA GADDY, § Appeal from the Appellant/Cross-Appellee. § Probate Court No. 2 v. § of El Paso County, Texas MARK FENENBOCK, § (TC# 2017-CPR00510) Appellee/Cross-Appellant.

MEMORANDUM OPINION

This is an appeal and cross-appeal from a probate court’s order directing the independent

executor of an estate to make a partial distribution of assets from the residuary clause in the

decedent’s will into a family trust. For the reasons set forth below, we conclude that the probate

court’s order is not an appealable order and dismiss the appeal for want of jurisdiction.

FACTUAL AND PROCEDURAL BACKGROUND

A. Jeannette Fenenbock’s will and estate plan

After her death in November 2016, Jeannette Fenenbock’s two children, Mark Fenenbock

and Glenna Gaddy, became embroiled in a protracted series of disputes involving her will and a

1 family trust established for their benefit. This matter involves a dispute over the administration of

the will, and relatedly, to the terms of the family trust.

Jeannette’s will, which named Glenna the independent executor of the estate, was admitted

to probate in May 2017. In her will, Jeannette made a specific bequest of her jewelry to Glenna

and directed that her personal property be distributed to both children in a manner determined by

Glenna. It contained a residuary clause providing for the “rest and residue” of her estate to be

placed in a trust that Jeannette and her late husband, Bernard Fenenbock, had created in 2008 (the

Family Trust) “to be held, administered and distributed in accordance with the terms of the trust

agreement governing same.”

The trust agreement provided that upon the death of both Jeannette and Bernard, Mark and

Glenna were to be co-trustees of the Family Trust. And after paying all debts associated with their

parents’ deaths, the trustees were to collect all trust assets and distribute them in accordance with

the agreement’s terms. Those terms included making gifts to family members, including the

Fenenbocks’ granddaughter, Lauren Fenenbock, and honoring the bequests made in the will. It

then directed the trustees to distribute the remaining assets in equal shares to each of the individual

trusts created for the benefit of Mark and Glenna, respectively. Pursuant to an October 2012

amendment to the trust agreement that Jeannette made after Bernard’s death, as part of that

distribution process, all shares in the W. Silver Recycling, Inc. (W. Silver) family business were

to be allocated to Glenna’s trust, and “assets of an equivalent value” were to be allocated to Mark’s

trust.

B. The trust litigation

As explained in our opinion in Matter of Tr. A & Tr. C, in April 2017, Glenna, acting

2 without Mark’s consent, transferred the shares of the W. Silver stock to her individual trust, then

sold the shares to her sons who were running the business. Matter of Tr. A & Tr. C, Established

Under Bernard L. & Jeannette Fenenbock Living Tr. Agreement, Dated March 12, 2008, 651

S.W.3d 588, 592–93 (Tex. App.—El Paso 2022, pet. granted), review granted (Dec. 15, 2023).

Mark thereafter filed a lawsuit against Glenna, which we refer to as the “trust litigation,” seeking

a declaration that he and Glenna were co-trustees of the Family Trust, and that Glenna lacked the

authority to make the transfer without his consent. Id. at 593. He sought to have the shares returned

to the Family Trust. Id. After the probate court ruled that Mark and Glenna were indeed co-trustees

and that Glenna lacked the authority to make the transfer without Mark’s consent, Glenna

responded that even if the transfer had been improper, the correct remedy was to obtain a valuation

of the stock and place the equivalent value into Mark’s trust. The court disagreed and ruled that

the proper remedy was to void the transfer, in effect placing the stock shares back into the Family

Trust. Id. at 594.

On appeal, this Court vacated the order, finding that the trial court erred by entering the

judgment without joining Glenna’s sons, who we held were jurisdictionally indispensable parties

to the lawsuit. Id. at 601. The Texas Supreme Court granted review of that opinion in December

of 2023, and the matter remains pending at this time.

C. The estate litigation

In the meantime, in June 2022, Mark filed a “Petition for Accounting and Distribution” in

the estate proceedings pursuant to § 405.001(a) of the Texas Estates Code. See TEX. EST. CODE

ANN. § 405.001(a) (“[A]fter the expiration of two years after the date the court clerk first issues

letters testamentary or of administration to any personal representative of an estate, a person

3 interested in the estate then subject to independent administration may petition the court for an

accounting and distribution.”). In the petition, Mark alleged that although Glenna had fulfilled all

the specific bequests in Jeannette’s will, she had failed to distribute the estate’s residual assets to

the Family Trust in accordance with Jeannette’s wishes. He therefore sought to have Glenna

“prepare and submit to the Court a full accounting of her administration of the Estate and to provide

any additional information the Court considers necessary to determine whether any part or all of

the Estate should be distributed.” He also requested that upon the court’s receipt of Glenna’s

accounting and after notice to her and a hearing, the court “order the distribution of the Estate to

the devisee under the decedent's probated Will.”

On September 8, 2022, Glenna filed her accounting, acknowledging that the specific

bequests in the will had been fulfilled. 1 Of the assets remaining in the estate, Glenna listed

$287,500 in real property; over $4,000,000 in various bank accounts; and approximately $360,000

in stocks. Glenna reported that there were no debts remaining, with the exception of: $150,000 she

claimed to be owed as executor’s compensation; unknown amounts that may be due to taxing

authorities; the costs and expenses of the accounting; and “[o]ngoing costs for the administration

of the Estate.” 2 Mark filed a notice that he was not objecting to the accounting.

Throughout the estate proceedings, Glenna argued that she could not distribute the estate’s

residual assets until the trust litigation concluded, claiming that the remainder of the estate assets

1 Jeannette also provided in her will that she “may from time to time prepare a hand[-]written list disposing of certain items of tangible personal property and effects that I desire to give to various individuals,” and that her executor was “to distribute those properties to the persons designated in such list as if such list had been fully set out in this Will.” In her accounting, Glenna referred to a “hand-written note” from Jeannette stating that she wanted Glenna to have the grandfather clock currently located at Glenna’s house. Mark did not contest Glenna’s right to the clock. 2 In her appellate briefing, Glenna no longer contends that any taxes are owed.

4 were to go directly into the individual trusts, and that she needed to know the value of the W. Silver

shares before she could ascertain the equivalent amount to which Mark was entitled. In addition,

Glenna claimed Mark had violated the “no contest” provisions in Jeannette’s will and the Family

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In the Matter of the Estate of Jeannette Fenenbock Glenna Gaddy/Mark Fenenbock v. Mark Fenenbock/In the Matter of the Estate of Jeannette Fenenbock Glenna Gaddy, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-the-matter-of-the-estate-of-jeannette-fenenbock-glenna-gaddymark-texapp-2024.