Teresa Genz, Kathern Cooksey, Cassandra Julich, Logan Genz, Taylor Genz, Jerry Genz, and Lance Cooksey v. Amy Carter Cooksey, Individually and as Trustee of the James E. Cooksey Trust U/T/D March 11, 2010

2021 Ark. App. 175
CourtCourt of Appeals of Arkansas
DecidedApril 21, 2021
StatusPublished
Cited by1 cases

This text of 2021 Ark. App. 175 (Teresa Genz, Kathern Cooksey, Cassandra Julich, Logan Genz, Taylor Genz, Jerry Genz, and Lance Cooksey v. Amy Carter Cooksey, Individually and as Trustee of the James E. Cooksey Trust U/T/D March 11, 2010) 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
Teresa Genz, Kathern Cooksey, Cassandra Julich, Logan Genz, Taylor Genz, Jerry Genz, and Lance Cooksey v. Amy Carter Cooksey, Individually and as Trustee of the James E. Cooksey Trust U/T/D March 11, 2010, 2021 Ark. App. 175 (Ark. Ct. App. 2021).

Opinion

Cite as 2021 Ark. App. 175 Elizabeth Perry I attest to the accuracy and ARKANSAS COURT OF APPEALS integrity of this document DIVISION I 2023.06.26 15:33:26 -05'00' No. CV-18-975 2023.001.20174 TERESA GENZ, KATHERN Opinion Delivered: April 21, 2021 COOKSEY, CASSANDRA JULICH, LOGAN GENZ, TAYLOR GENZ, JERRY GENZ, AND LANCE APPEAL FROM THE WASHINGTON COOKSEY COUNTY CIRCUIT COURT APPELLANTS [NOS. 72CV-16-1044 & 72PR-17-501]

V. HONORABLE DOUG MARTIN, AMY CARTER COOKSEY, JUDGE INDIVIDUALLY AND AS TRUSTEE OF THE JAMES E. COOKSEY TRUST U/T/D MARCH 11, 2010 APPELLEE AFFIRMED

RAYMOND R. ABRAMSON, Judge

This is an intrafamily dispute over the estate plan prepared by the decedent, James

Cooksey. On one side are the decedent’s daughter, Teresa Genz (Teresa), and the decedent’s

ex-wife, Kathern Cooksey (Kathern). They are the principal appellants. 1 On the other side

is appellee Amy Cooksey (Amy), the decedent’s widow and the trustee of the James E.

Cooksey Trust (the trust). Appellants sought to reform the trust and to reform a

commissioner’s deed conveying property to the decedent and Kathern. In the alternative,

appellants sought to impose a constructive trust on that property. After a bench trial, the

1 Other appellants include Jerry Genz, Teresa’s husband; the decedent’s son, Lance Cooksey (Lance); and Teresa and Jerry’s adult children, Taylor Genz, Cassandra Julich, and Logan Genz. circuit court granted a motion to dismiss at the close of appellants’ case-in-chief. The court

also adopted the plan for distribution of the trust assets proposed by Amy. We affirm.

The decedent and Kathern married and had two children before divorcing in 1994.

The decedent and Amy had been in a relationship approximately eighteen years when the

decedent’s estate plan was created. The decedent and Amy would later marry in December

2015, shortly before the decedent’s death in February 2016.

The James E. Cooksey Trust was executed in March 2010. At the time of the

creation of the trust, the decedent owned several tracts of real property. As pertinent to this

appeal, the decedent owned two 40-acre tracts, referred to as the homestead property. This

property was conveyed to the trust by quitclaim deed contemporaneously with the

execution of the trust. The homestead property was located near another 121-acre tract the

decedent owned that had been in his family for many years. The 121-acre tract was also

conveyed to the trust. The decedent also executed a beneficiary deed conveying his

residence and an adjacent 40-acre tract (the residence property) to Amy upon his death.

At the time of his death, the decedent and Kathern each held an interest in the farm

where Teresa and Jerry Genz lived. That property, referred to as the Genz farm, had been

foreclosed upon and then had been purchased by the decedent and Kathern. Testimony was

presented that there was an agreement between the decedent, Kathern, Teresa, and Jerry in

which the decedent and Kathern would borrow the funds to make the purchase and Teresa

and Jerry would make the payments. According to appellants, the decedent and Kathern

were advised that the property would be conveyed to them as joint tenants with right of

survivorship and that this information was passed to the circuit court clerk for preparation

2 of the commissioner’s deed. However, the commissioner’s deed ultimately conveyed the

property to the decedent and Kathern without specifying the type of tenancy conveyed.

The trust provided that upon the decedent’s death, his assets would be distributed

as follows: (1) certain personal property, including horses, tack, horse trailers, a bobcat

loader, a pickup truck, and all household goods and furnishings—with the exception of

antiques and family heirlooms—were to be distributed to Amy; (2) machinery and

equipment were to be sold and the proceeds equally divided between Amy, Teresa, and

Lance; (3) all cattle were to be distributed to Teresa and her children; (4) all family antiques

and heirlooms were to be distributed to Teresa; (5) all bank accounts, stocks, and life

insurance proceeds were to go to Amy; (6) the 121-acre parcel was to be distributed to

Teresa and her children as joint tenants with right of survivorship; (7) all the remaining trust

assets were to be divided equally between Amy and Teresa. The trust was silent as to the

decedent’s interest in the Genz farm.

The trust named the decedent as trustee during his lifetime. After his death, Amy and

Teresa were to serve jointly as cotrustees. If either Amy or Teresa was unwilling or unable

to serve, the other was to serve as sole successor trustee. The trustees were to account to the

beneficiaries at least quarterly.

The decedent executed a pourover will contemporaneously with the establishment

of the trust. All the decedent’s estate was bequeathed to the trust. Amy was appointed

executrix with Teresa named as substitute executrix.

Following the decedent’s death in February 2016, on May 20, Amy filed a petition

seeking to remove Teresa as cotrustee, alleging that Teresa refused to communicate and

3 cooperate with her in the administration of the trust. Amy asserted that this was done in bad

faith to deprive her of assets she was entitled to under the trust. Teresa did not respond to

the petition, and by order entered on July 28, 2016, she was removed as cotrustee with Amy

remaining as the sole trustee.

On February 21, 2017, Amy, as trustee, executed a quitclaim deed conveying the

homestead property’s forty-acre pasture to Teresa. She also executed another quitclaim deed

conveying the actual homestead place to herself.

By agreement reached after Teresa obtained a temporary restraining order halting an

earlier sale, an auction of the decedent’s personal property was held in April 2017. Teresa

contended that some of the property to be sold was to be distributed to her under the trust.

The agreement was that Teresa could bid on any item that she claimed to be hers under the

trust and, if successful, would not be required to pay for such items on the day of the auction.

Amy later asserted that Teresa purchased items that were not antiques or family heirlooms,

while Teresa contended that she had to purchase lots in which antiques were comingled

with non-antiques. The upshot is that neither Teresa, Amy, nor Lance paid for their

purchases. The trust was owed approximately $45,000 for these purchases.

On May 16, Amy filed an affidavit for collection of small estate in the probate division

of circuit court. This companion case was later consolidated for trial with the trust case. In

her affidavit, Amy asserted that the decedent owned a one-half undivided interest in the

Genz farm property, and that under the decedent’s will, that interest would go to the trust.

On July 23, Teresa and Kathern filed a petition seeking reformation of the trust,

reformation of the commissioner’s deed, the removal of Amy as trustee, the imposition of a

4 constructive trust, and damages for Amy’s breach of the trust. The petition alleged that there

had been a scrivener’s error concerning the homestead property intended for Teresa. The

petition sought reformation of the commissioner’s deed where the decedent and Kathern

purchased the Genz farm property at a foreclosure sale, asserting that the deed was intended

to convey the property as joint tenants with a right of survivorship but mistakenly named

them as tenants in common.

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