Will your family steal your home?

Thanks to the generosity of over 5,000 online supporters from across the globe, a 91-year-old Ohio man, John Potter, has successfully overcome his daughter’s attempts to evict him from the home he built 56 years ago.

In 2004, while battling a serious illness, World War II veteran John Potter gave the general power of attorney to his daughter, Janice Cottrill.  Unbeknownst to Potter, Cottrill exploited this power to convey his home’s deed to herself.

Potter learned of the deed transfer in 2010 and promptly switched power of attorney to his granddaughter.  He then sued to reclaim the one-story house, arguing that his daughter’s deed transfer was illegal because as the power of attorney, she cannot transfer assets to herself from the estate she oversees.

He initially won in the county court, but in 2012, an appeals court overturned the decision.  It stated that the four-year statute of limitations had passed on the accusation of breach of fiduciary duty.  Thus, the deed could not be returned to Potter.

Earlier this year, the family dispute culminated in Cottrill’s eviction notice to her father, informing that she had terminated his “existing lease.”  Yet, she, in agreement with her attorney, offered to allow Potter to remain in the house if he bought it.

Potter’s only income is his pension, making it nearly impossible for him to afford the $125,000 price tag for the home he once owned outright.  This prompted Jaclyn Fraley, his granddaughter and current power of attorney, to launch an online campaign to raise the necessary funds.  The news outlets picked up the story, and in just a month, Fraley and Potter have already exceeded their expectations, earning over $135,000.  Impressively, donations continue to pour in, giving Potter additional finances to continue to care for the home.

Through grit, persistence, and several thousand generous friends, John Potter scraped his way back from a power of attorney gone terribly awry.

Horror stories such as this nightmare can and do happen—but they do not always end so favorably.  Powers of attorney are often necessary, but it is imperative to understand this role’s authorities and responsibilities before you assign one or become one.  Or, perhaps you will learn all of this in the course of complex probate litigation?


UPDATE 6/20/13: 
 

John Potter once again finds himself facing a looming eviction.  Due to price disagreements, Janice Cottrill rejected her father’s recent offer on the home.

An independent market appraisal conducted on the home revealed its value is $47,000 with a tract of land worth $2,830.  Through his attorney, Potter offered to pay his daughter this market value, but he instead received a counter-offer around $85,000 plus $4,000 and $11,500 for the eviction process and attorney fees, respectively.  Potter attempted a second offer of $60,005.23 on June 13, but Cottrill declined without a counter-offer, issuing a letter through her lawyer informing that she finds “the offer unacceptable and decline[s] the same.”

Potter’s attorney, Tim Gleeson, says that he and his client are open to conducting another appraisal but admits that without a counter-offer, the best move is to look for new housing for Potter.

With his eviction hearing scheduled for June 26, Potter fears the judge will have no choice but to force him out of the home.  Jaclyn Fraley says that she will help her grandfather purchase a new house with the generous donations from thousands of internet donors. 

He will not be homeless but John Potter will most likely never again live in the home he built 56 years ago— all because of a power of attorney gone wrong.

When smart people die like idiots.

“He was a very smart man but he died like an idiot."

So eulogized by a close friend, Roman Blum died at age 97 with no wife, no children, and no heirs. Mr. Blum also died without a Will. To this point, Mr. Blum followed a trajectory similar to many of our clients, here in Maryland.  But unlike most of us, Mr. Blum left $40 Million behind. It will now be left to the state courts in New York to divvy up the money, according to laws governing folks who fail to leave instructions for their probate estate. The government stands to make a windfall!

Your estate, the collection of assets you worked hard to accumulate during your life, can benefit others when you pass.  And you have a lot to say about who benefits.  It simply must be written down. Otherwise, you may well benefit persons and governments that you consider unworthy of your help.

Most folks simply have not considered what may happen to their bank accounts, house, cars, collections and other things upon death.  Most of us just don't like to consider our own death.

The State of Maryland has considererd your death, and it has made plans for all your stuff, and your kids.  It is called "intestacy." When you die without a Will, you are deemed "intestate." And at the moment of your death, your estate (that pile of money and things you have accumulated) becomes subject to Maryland statutes that cover folks like you...folks that never considered drafting a Will.

In a manner of speaking, the State of Maryland has drafted your Will, already.  If the rules of intestate succession (who gets your stuff, your money, and who raises your kids) work for you, then you certainly should not write a Will.  But if you are not satisfied having the State of Maryland interfering in your family affairs, then you need to write a Will.

For instance, if you die before your spouse (wife or husband, or same sex), there is no guarantee that your spouse will inherit your entire estate.  If you leave a minor child or a parent, your spouse will be entitled to $15,000, off the top, and then only 1/2 of the remainder.  And it gets worse.

If you have left a minor child to inherit 1/2 of your estate, it will be left to the Circuit Court to appoint a trustee for the child's money, and it may not be your spouse!  That trustee will make annual, and public, reports on how the money is spent. And the Circuit Court may well need to approve any expense to be paid for your child. As you read this, I can sense your revulsion, as if you just ate a spoiled fruit.

At the most extreme, if there are absolutely no parents, spouse, kids, step-children or others entitled to take your stuff under the laws of intestacy, guess who gets it all? Read on and be appalled:

the net estate shall be converted to cash and paid to the board of education in the county in which the letters were granted, and shall be applied for the use of the public schools in the county.

And so, imagine if Roman Blum, recently of New York, had died in Baltimore City. Without any children, spouse or heirs, it is entirely likely that Mr. Blum's $40 Million would fall to the City of Baltimore for use by the Public Schools.  And just imagine how that money would be wasted away.

Take control of your estate. Create peace of mind for yourself and your family. Don't let the State of Maryland make such important decisions for you. Don't let it be said that you "died like an idiot."--Write a Will.

 

It's getting easier to locate estates in Maryland.

The latest addition to Maryland's on-line databases is here! You may now search all estates, across the state, on the new Register of Wills page. We may all search by decedent, interested party, and other categories. The search gives access to the docket.

But this is not like the PACER system, where you may download .pdf documents with a few clicks of the mouse, and payment of $.08 per page. This site only gives you document titles, and the number of pages. The document must be ordered, at a cost of $.50 per page. This involves filling out a form, and mailing or delivering the form., and then awaiting delivery of the documents through snail mail...*yawn*.

This is still a great tool to replace having to send our paralegals and assistants out to various courhouses to search for the existence of estates. But it does not vitiate the need to review the actual file (or microfilm) at the courthouse, and obtain copies.