Stephanie Wilson and William A. Buckley III v. Jeanette Kolterman, by Her Next Friend, Tad Kolterman Tad Kolterman Monica Johnson And Juanita Groomer

2024 Ark. App. 376
CourtCourt of Appeals of Arkansas
DecidedJune 5, 2024
StatusPublished
Cited by1 cases

This text of 2024 Ark. App. 376 (Stephanie Wilson and William A. Buckley III v. Jeanette Kolterman, by Her Next Friend, Tad Kolterman Tad Kolterman Monica Johnson And Juanita Groomer) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stephanie Wilson and William A. Buckley III v. Jeanette Kolterman, by Her Next Friend, Tad Kolterman Tad Kolterman Monica Johnson And Juanita Groomer, 2024 Ark. App. 376 (Ark. Ct. App. 2024).

Opinion

Cite as 2024 Ark. App. 376 ARKANSAS COURT OF APPEALS DIVISIONS II, III & IV No. CV-23-327

STEPHANIE WILSON AND WILLIAM Opinion Delivered June 5, 2024 A. BUCKLEY III APPELLANTS APPEAL FROM THE SEBASTIAN COUNTY CIRCUIT COURT, FORT SMITH DISTRICT V. [NO. 66FCV-21-778]

JEANETTE KOLTERMAN, BY HER HONORABLE R. GUNNER DELAY, NEXT FRIEND, TAD KOLTERMAN; JUDGE TAD KOLTERMAN; MONICA JOHNSON; AND JUANITA AFFIRMED IN PART; REVERSED IN GROOMER PART APPELLEES

ROBERT J. GLADWIN, Judge

This is an appeal of an amended order of the Sebastian County Circuit Court entered

as a result of appellant Stephanie Wilson’s (“Wilson’s”) motion for a new trial, motion to

vacate, and motion to modify order. Appellant William A. Buckley III (“Buckley”),

Wilson’s attorney, appeals the circuit court’s order finding him in contempt of court.

Appellants argue that (1) the circuit court erred in finding that Wilson’s life estate in the

property in question was revocable and that the living trust created by appellee Jeanette

Kolterman (“Jeanette”) could be terminated, and (2) the circuit court’s finding of contempt

against appellant Buckley should be reversed because there was no valid civil or criminal

contempt demonstrated by the record. We affirm in part and reverse in part. I. Background Facts

Wilson and Jeanette lived together for thirty-eight years from 1983 through 2021.

In 1983, Jeanette and her three children moved in with Wilson and lived in her home.

Jeanette’s children are appellees Tad Kolterman, Monica Johnson, and Juanita Groomer

(individually referred to sometimes herein as “Tad,” “Monica,” and “Juanita,” and

collectively referred to herein as “appellees”). In 2003, Wilson and Jeanette bought a

home—located at 7719 Camelot Circle in Fort Smith, Arkansas (hereinafter “the

Residence”)—as joint purchasers. Wilson and Jeanette lived together at the Residence from

2003 through 2021. In January 2020, Jeanette sold her family’s farm in Iowa and used the

proceeds to pay off the mortgage on the Residence. Thereafter, Jeanette and Wilson met

with an accountant, Nancy McMillian, and also consulted with attorney Kathryn Stocks in

Fort Smith to discuss preparation of trust documents.

On January 2, 2020, Jeanette—as settlor of the Jeanette M. Kolterman Living Trust—

established a trust and named Wilson as the trustee. Pertinent portions of the trust state as

follows:

3.1 Distributions During Lifetime of Settlor. So long as the Settlor is living, the Trustee shall pay at the written request of the Settlor so much of the principal of such trust estate as Settlor shall request. Any income derived from this trust shall be distributed to the Settlor at least monthly during the lifetime of the Settlor. If at any time the Settlor shall be incapacitated or shall for any other reason be unable to act on Settlor’s own behalf, the Successor Trustee may pay to or apply for the benefit of such Settlor such amounts of the income and principal of the trust estate as the Trustee may from time to time deem necessary or advisable for Settlor’s use and benefit.

3.2 Division of Trust Estate at Death of Settlor. On the death of the Settlor, the Trustee shall hold the trust estate, including any additions to the trust by reason of Settlor’s death subject to the uses and conditions set out hereafter.

2 ....

(b) Termination of Trust and Distribution of Assets. Upon the death of the Settlor, after payment of expenses, taxes, and other charges, the Trustee shall hold the remaining trust assets as follows:

Stephanie L. Wilson is the beneficiary of all of the assets of this Trust as long as she is alive to use the funds in order that she be able to live in the house located at 7719 Camelot Circle, Fort Smith, AR 72901, owned by the Trust as long as she is able to live there and if she goes into a nursing home and is not able to return after (2) years, then the Trustee if, at her discretion, believes Stephanie L. Wilson will never be able to return to living at the home, then the Trustee can deed the house on the following beneficiaries. Monica Johnson, Juanita Groomer, and Tad Kolterman, in equal shares, per stripes. The provision of the life estate to Stephanie L. Wilson in the house located at 7719 Camelot Circle, Fort Smith, AR, 72903, is irrevocable because she voluntarily gifted her joint [interest] in trust to this Trust (subject to her going to a nursing home as provided herein). The primary purpose of this Trust is to maintain the house located at 7719 Camelot Circle, Fort Smith, AR, 72903, as long as both the Settlor and Stephanie Wilson can possibly live there independently and/or with the assistance of each other or hiring help so that they can stay in their home and provide funds for those expenses. ....

4.16 Notwithstanding any provision herein to the contrary, during Settlor’s lifetime, Settlor reserves the right at any time to instruct the Trustee in writing as to which of the assets contained in the trust land shall be held by the Trustee and which are to be sold, and also reverse the right to instruct the Trustee in writing as to the securities in which any or all of the trust fund shall be invested, and the Trustee shall abide and be governed by such written instructions given to it. . . .

....

6.5 Settlor reserves the right at any time or times to amend, alter, or revoke this trust in whole or in part, or any provisions thereof, by an instrument in writing signed by Settlor and delivered to the Trustee during the lifetime of Settlor except Settlor does not retain the authority to revoke the provisions leaving a life estate in the property to Stephanie L. Wilson in real property located at 7719 Camelot Circle, Fort Smith, AR, 72903.

3 On that same day, a warranty deed was filed in Sebastian County, wherein Wilson and

Jeanette each deeded their one-half interest in the Residence to Wilson, in her

representative capacity, as trustee of Jeanette’s trust. The deed further noted “[t]here is a

provision in the Living Trust that allows Stephanie L. Wilson to remain in the house as long

as she is able to do so and is irrevocable.”

Shortly thereafter, Jeanette began displaying signs of dementia. Wilson provided care

for Jeanette until January 2021, at which time Wilson was hospitalized due to COVID-19

virus complications. Monica began overseeing Jeanette’s care while Wilson was in the

hospital. On January 29, 2021, Jeanette was moved to Virginia Beach to stay with her son,

Tad. On April 9, 2021, Monica petitioned the Sebastian County Circuit Court for

guardianship of her mother, Jeanette. Wilson filed an objection to the petition, and on

April 21, the circuit court denied the motion, and via an ex parte temporary order, held

that Jeanette was to be returned to her home in Fort Smith and that Monica was to return

money—taken or obtained—except funds that were to be expended on or for the benefit

of Jeanette, including her return to Fort Smith. Jeanette never returned to Arkansas. During

a recorded conversation between Wilson and Jeanette that was played at trial, Wilson told

Jeanette that the court had ordered that she be returned to Arkansas; however, Jeanette

stated that she wanted to stay in Virginia.

On October 13, 2021, Wilson, as trustee, deeded a one-half interest in the Residence

to herself in an individual capacity. The deed further states that “in return for her 50%

interest, Grantee waives the provision in the Living Trust that gives Grantee a life estate that

was irrevocable.” In response, on October 22, 2021, appellees filed suit against Wilson to

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2024 Ark. App. 376, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stephanie-wilson-and-william-a-buckley-iii-v-jeanette-kolterman-by-her-arkctapp-2024.