Overview

Fund trust

Jean O'Connell tells the accountants(s) to fund the trust. The accountants don't fund the trust but create obstacles that leave a paper trail that makes it appear that the family doesn't want to fund the trust.


I don't understand why the final account for the estate for my dad, H. A. O'Connell was not done years ago and that I was not told that I had to qualify as Trustee. He died on May 26, 1975. I do not understand why I, as nominated Trustee in his Will Joanne Barnes did not tell me, as nominated Trustee in his Will, or mother, Jean O'Connell, the executor of his Will, that a final court account was required which would transfer the residual estate to the testamentary trust, and that I had to qualify at the court as Trustee. had to be done. The final estate account would transfer the residual estate to the trust, automatically closing the estate and funding the trust. Nothing else can do this such as an "Agreement"or "reciept". The final estate account is the only thing needed and the only thing asked for. I don't understand why the accountants delayed the final estate account for 14 months and made appear to my mother that I was the source of the delay. About 4 months into the delay the accountants surplant me and Philip Shalloway as co-ececutors of Jean O'Connell's will. They almost surplant me as Trustee. ficuDuring this period the accountants gained control of Jean O'Connell's future estate and almost the trust.

Note: The final estate account transfers the residual estate from the estate to the trust. It automatically closes the estate and funds the trust. The trustee would be in control of the assets transferred to the trust and the accountants would not. The final estate account is the only thing needed from the accountant(s) and the only thing asked for (May 1985: "First thing is to have the final accounting based on same figures as in the 1st accting.  Send it to me- do I have to sign it"). I do not understand why the accountants withheld the final estate account for 14 months and created paper trails of confusion and conflict that make it appear as if the family is the problem.

Correspondence

(fund trust)
1985.05.08   (Robert McCandlish to Jean O’Connell) (Copy to Anthony O'Connell)
"According to the inventory filed for the above estate the gross value was $90,650.27 and under the terms of the will one-half of the estate goes to you as the "Marital Share" (one-half being the amount allowed the wife without estate tax by IRS) and the balance goes to the "Residuary Estate" which shall be held in trust bt Anthony M. O-Connell, as Trustee, and the income paid to you and, in the sole discretion of the Trustee as to time and amount, the principal of the trust may be used for your support and maintenance.
This trust must be set up since we cannot ignore the will and at your death the balance in the trust goes to your three children or their issue.  At this time, we don’t know who that will be.
 Please advise me what is being done to set up this trust.  As a non-resident, Anthony M. O’Connell can act as Trustee only if a resident of Virginia qualifies with him or a Virginia resident is designated as an agent to receive notices and processes from the Court and the Commissioner of Accounts. 
It is possible that an indemnification agreement can be worked out so the trust need not be funded, but this office should not advise you about such an agreement
Very truly yours,”

(fund trust)
1985.05.30 (Jean OConnell to Commissioner of Accounts (draft)
"SAVE  RE  Est of HAOC   45,325.00
In answer to your letter of May 8th regarding progress the in establishing a trust to be set up required by the will with Anthony M. OConnell as trustee I would like to report that a co-trustee has agreed to serve with him.
Ms Jo Ann Barnes
Home address
7225 Pine Drive, Annandale, Va. 22003
354-0673 - office
I am   She will be working on this soon with a lawyer.   I had hoped that the procedure of setting up a trust could be simplified instead by putting title to that amt  the "Residuary Estate" (my home) in the names of my three children and   - the same as listed in the will to receive it.    There should be more definite progress soon and I will inform your office then.
V T Y
J M O'C Extrx  
Sent 5/31/85
To Commissioner of Accts.
Sent 5/31/85"

 

 

     

Shortly after receiving Robert McClandlish's letter of May 8, 1985

     
     
     
     
     
     
     
     
     
             
     
     
             

 

Jean O'Connell's instructions to Joanne Barnes

(fund trust)
1985.05.14* (Jean OConnell's memo of her phone call to Joanne Barnes. Jean O'Connell in bold)
"So Kaiser-Hilton.  Joanne - 549-7800
 My son Tony called.  He said he wanted very much to be the full trustee with an agent to receive notices and processes from the court & commissioner as in the May 8th letter.  Would First thing is to have the final accounting based on same figures as in the 1st accting.  [4] Send it to me- do I have to sign it"
(Editing note: The following was apparently what Joanne Barnes told Jean OConnell)
call- will do draft of final acting. Deed to property-convey to court.  Needs how much

Joanne Barnes secrect instructions to Jean O'Connell

(obstacles: draft, deed, how much)
1985.05.14* (Jean OConnell's memo of her phone call to Joanne Barnes. Joanne Barnes in bold))
"So Kaiser-Hilton.  Joanne - 549-7800
 My son Tony called.  He said he wanted very much to be the full trustee with an agent to receive notices and processes from the court & commissioner as in the May 8th letter.  Would First thing is to have the final accounting based on same figures as in the 1st accting.  Send it to me- do I have to sign it"
(Editing note: The following was apparently what Joanne Barnes told Jean OConnell)
call- [3] will do draft of final acting. [2] Deed to property-convey to court.  [1] Needs how much

(1) How much

(obstacle: how much)
1985.08.16   (Joanne Barnes to Jean O’Connell)
"RE: Estate of Harold M. O'Connell
Dear Mrs. O’Connell:
Your son requested that I furnish him copies of the Court Accountings that had been filed for the Estate.  I have sent them on to him today.  I am also enclosing a copy of the schedule which I believe reflects the fraction of the estate’s one-half interest in each property to which you and the Trust are entitled.   If the transfers are made in these percentages, you would then own 56.475% of each property (50% owned individually plus 12.95% of one-half interest in a property.  If you and the Trust chose at some time in the future to exchange all or part of an interest in a property,  I believe it should be done based on the then current fair market value of the properties.  In such case,  I would recommend that you have the properties appraised by a qualified real estate appraiser.  With regards to your request that I serve as co-trustee of the Trust with your son, I regret that I must decline to be either co-trustee or act as agent to receive notices and processes for him.   Please call me and we can discuss this further.
Very truly yours,
Joanne L. Barnes
Cc: Mr. Anthony M. O’Connell”

(obstacle: how much)
1985.10.29   (Edward White to Henry Mackall) (No copy to another) (I did not know of this letter until Henry Mackall sent me a copy on August 29, 1995)
"Enclosed is an Agreement along the lines of that discussed by us previously, which my client has signed.  Ms. Jo Ann Barnes, of Bruner, Kane & McCarthy Accountants, previously has furnished Mr. O'Connell with the numerical data which explains the derivation of the percentages reflected in the Agreement. 
If you have any additions or corrections to it, please let me know.
Sincerely, Edward J. White"

(2) Deed-"Agreement"

(obstacle: deed/agreement)
1985.10.23   (Edward White to Jean O'Connell) (No copy to another) (I did not know of this letter until I found it in my mother's papers after her death on September 15, 1991)
"Enclosed is the Agreement which Mr. Mackell and I discussed.  If it meets with your approval, I would appreciate your signing it and returning it to me so that I might forward it to him for the signatures of the Co-Trustees.  This document should serve both as the Agreement and as the receipt by the Trustees for the Trust property.
Sincerely, Edward J. White

 

(obstacle: deed/agreement)
1985.10.29   (Edward White to Henry Mackall) (No copy to another) (I did not know of this letter until Henry Mackall sent me a copy on August 29, 1995)
"Enclosed is an Agreement along the lines of that discussed by us previously, which my client has signed.  Ms. Jo Ann Barnes, of Bruner, Kane & McCarthy Accountants, previously has furnished Mr. O'Connell with the numerical data which explains the derivation of the percentages reflected in the Agreement. 
If you have any additions or corrections to it, please let me know.
Sincerely, Edward J. White"

(3) Draft

(obstacle: draft)
1986.04.10   (Edward White to Joanne Barnes) (Copy to Jean O'Connell ) (I did not know of this letter until I found it in my mother's papers after her death on September 15, 1991)
"I have agreed with Anthony O'Connell's attorney that we will provide them with a draft of the final accounting in the Harold O'Connell Estate.  This, I think, will allay all of the suspicions that have arisen on the other side in this matter. 
If you could commence preparing that, I would appreciate it.   I am enclosing a copy of the nearly signed Agreement, by which the Trustees agree to take possession of the percentage interest of the property.  
Thank you.
Sincerely, Edward J. White"

(obstacle: draft)
1986.04.25   (Edward White to Henry Mackall) (No copy to another) (I did not know of this letter until I found it in my mother's papers after her death on September 15, 1991)
"Enclosed is the draft by Ms. Barnes of the Final Accounting.  
I have taken the liberty of correcting a typographical error on the distributions to reflect 53.9006% vice 3.9006%.  
I would appreciate it if you would forward this to Mr. O'Connell and clarify with him his intention to qualify on May 1st.   
If he does not agree or requests further delaying tactics, I feel that I have no other recourse in serving my client than to seek to have him removed as a Trustee.  This matter is costing Mrs. O'Connell dearly with the delay.

 

(4) Sign


1986.06.26   (Edward White to Joanne Barnes) (Copy to Jean O'Connell) (I did not know of this letter until I found it in my mother's papers after her death on September 15, 1991)
"I represent Mrs. Jean O'Connell in the above referenced matter. 
We are now ready to file the Final Accounting.  Enclosed is a document entitled Agreement, paragraph 1 of which acknowledges receipt of the property. 
If you need any other documents, please contact me or Mrs. O'Connell.  Thank you.
Sincerely, Edward J. White"

(obstacle: Jean O'Connell can't sign if she can't get it)
1986.06.26   (Edward White to Jean O'Connell) (No copy to another) (I did not know of this letter until I found it in my mother's papers after her death on September 15, 1991)
"At last, we are ready to file the final Accounting in this case. 
In order to spare you having to mail documents back and forth, I am notifying Jo Ann Barnes to begin the accounting and sending her a copy of the Agreement wherein your son and Mr. Higham acknowledge receipt of the Trust property. 
Miss Barnes will contact you at the time your signature is needed.
Sincerely, Edward J. White"