Thursday's Internet Edition, August 28, 2008.
Judge rules in Gordon estate
By DAVID HEDGES
Publisher
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The executrix for the estate of the last surviving member of one of Spencer’s most prominent families must repay the estate more than $200,000, a judge has ruled.
Hazeldeane Gordon, who died in 2005, left the bulk of her $2.5 million estate to St. Jude Children’s Research Hospital.
Gordon, a registered nurse, was a daughter of prominent Spencer physician Dr. A.T. Gordon, who operated Gordon Memorial Hospital on Church Street for many years.
In her will, Hazeldeane Gordon named her friend, Joyce Conrad, to serve as executrix of the estate, and did not require her to post bond.
Conrad wrote checks totaling $300,000 to herself from the estate after Gordon’s death, according to an order filed last week by Roane Circuit Judge Tom Evans.
Her actions were challenged by a fiduciary commissioner, former county clerk Loretta Knapp, who said Conrad should pay most of the money back.
Knapp’s findings were upheld by the Roane County Commission, and Conrad appealed the commission’s ruling to circuit court.
At a hearing before Evans last October, Conrad said she planned to sell her farm on Seaman Fork to repay the money.
In his order, Evans said Conrad, at least until the time of the hearing, had done little to settle the estate.
“It appears that for more than two years after the decedent’s death, Ms. Conrad did not sell one piece of the real estate, either homes or mineral interest,” the judge’s order said.
Evans said Conrad had employed both an attorney and an accountant, but still paid herself well above what was considered the normal rate.
Evans’ order said of Conrad, “She told the Fiduciary Commissioner, ‘I do nothing. I let the attorney and the accountant handle the estate.’”
Using a figure of 5 percent, Knapp said Conrad would have been entitled to $97,721.61, plus $3,721.27 for reimbursement of expenses.
Counting interest, Knapp said Conrad should repay the estate more than $208,000.
Evans said the 5 percent figure came from case law establishing the amount of “reasonable” commission. He said a law that went into effect in June 2007 sets the rate at 5 percent for estates of less than $100,000, which declines gradually to 2 percent for amounts over $800,000.
Using that rate, Evans said Conrad would have been entitled to receive just over $50,000, assuming there was no deduction or denial for failure to discharge duties faithfully, or no increase for extraordinary services.
Using either standard, Evans said the funds drawn by Conrad “certainly exceed the usual commission.”
Evans said a final distribution to St. Jude is still pending.
Evans upheld the findings by Knapp and the county commission and ordered Conrad to appear in court April 28 to show why she should not be held in contempt.
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