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Heirs

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The Inheritance

Tuesday, May 31st, 2011

Where there’s a will, there’s a way.

The former home of Amanda Jones

ATLANTA, GA–For many years until her death in 2005, this was the home of Amanda Jones.

Among her close relations, Ms. Jones had a niece named Lillie Mae Walker. In 1976, Ms. Walker came to live with Ms. Jones. Later, in 1994, Ms. Walker’s daughter, Laurlene Riggins, also moved in. Ms. Riggins provided care for Ms. Jones, who was then 90, and Ms. Walker, then 72.

In 1995, Ms. Jones signed a Last Will and Testament giving a life estate in the property to Ms. Walker, with the remainder interest going to Ms. Riggins.

Ms. Jones had a stepson, named Eugene. In June 2003, she signed a different Last Will and Testament in which she bequeathed the property to Eugene. But then, in October 2003, Ms. Jones signed yet another Last Will and Testament, revoking all previous wills and again bequeathing the property to Ms. Walker as to a life estate, with the remainder going to Ms. Riggins.

Ms. Jones died in April 2005. After her death, Ms. Walker and Ms. Riggins continued to live in the home–but they neglected to file the October 2003 will for probate.

Enter Ellene Jones, Eugene’s wife. In May 2005, Ellene filed the June 2003 will for probate. Without notice to Ms. Walker or Ms. Riggins, the Probate Court named Ellene executrix of Ms. Jones’ estate and, in July 2005, Ellene executed a deed transferring the ‘free and clear’ property to Eugene.

Eugene promptly mortgaged the property, giving a security deed (akin to a deed of trust) to Ameriquest, for $95,500, in August 2005. Ameriquest got a drive-by inspection, never speaking to residents Walker and Riggins.

Ms. Riggins learned of the mortgage in mid-2006, after getting a mortgage-related notice in the mail followed by telephone calls, but Eugene denied any knowledge of it.

So Ms. Riggins got a lawyer, and filed the October 2003 will for probate. The Probate Court revoked Ellene’s appointment, and approved the October 2003 will as Ms. Jones’ true Last Will and Testament. Ms. Riggins was made the new personal representative of the estate, whereupon she deeded property to herself and Ms. Walker.

The Supreme Court of Georgia building

The stage was set for a legal battle between the heirs and the lender (now Deutsche Bank). The lender sued to quiet title, and the trial court ruled for the lender. The heirs appealed.

The Supreme Court of Georgia affirmed the trial court decision. The high court explained that, under Georgia statutes, an innocent purchaser of property from an ‘apparent’ heir of a deceased person is protected “as against unrecorded liens or conveyances.”

The Court reasoned that the lender did not have “actual notice” of the true heirs’ interests because Walker and Riggins had not opened a probate at the time the loan was made. And, the Court said, the lender would not be charged with knowledge it could have gained from parties in possession, but instead acted reasonably in relying on what Eugene told them–which was, “momma…made the will to me” but Ms. Walker “is supposed to live there until she dies.”

The Court concluded, “Ameriquest’s failure to inquire further regarding Walker’s status in the house does not show a lack of good faith.”

Moral: In light of this harsh result, seems the Georgia legislature should do some work on its statutes.

But the real moral here is that anyone with an interest in property under a will should see that the will is promptly probated. Failing to act is risky business.

The case is Riggins v. Deutsche Bank, 708 S.E.2d 266, 288 Ga. 850 (Ga. 2011).

50 Monkeys

Sunday, April 25th, 2010

Reverter:  A gift of land recalls its purpose.

SANTA ANA, CA–J. E. “Ed” Prentice came to Orange County in the early days, when it was just a farm belt dotted with a few small towns and whistle-stops.

He had  been a teacher, lawyer, and sometimes farmer in his native Kansas when, in 1912, he and his wife Edith came west.

They settled in Santa Ana, the county seat, and Ed got into business trading mules and horses.  He owned a stable in town and folks called him “Judge.”  At home, he kept a pet monkey.

Judge Prentice, with monkeys

By the 1920s, Ed was busy buying orange groves and making farm loans from an office he occupied in the First National Bank Building.  He now had four pet monkeys.

Then came the depression.

It was 1931 and Ed, now 44, held a mortgage against the Melwood Estate on the outskirts of town.  Melwood was 19.23 acres with a sixteen room mansion, a producing orange grove, water plant and packing shed.  The owner was in dire straits, and the mortgage was in default.  Ed foreclosed and got the property for $12,600.

Ed and Edith, who were childless, moved in at Melwood with Ed’s monkeys.  There, they rode out the depression until 1940, when Edith died.  After that, Ed lived alone with a succession of servants who, tormented by monkeys, kept quitting.

By 1949, the Melwood grove was in decline and suffered from disease.  Ed got the idea to give some land to the city for a park.  The gift was accepted, and a deed was recorded conveying twelve acres to the City of Santa Ana, with “conditions.”

The deed conditions were that the land was to be used for a park only, to be named “Prentice Park,” and “at all times ample accommodations shall be provided for 50 monkeys.”  If the monkey population should fall below 50, the land would automatically revert to Ed or his heirs.

The Santa Ana Zoo at Prentice Park opened in 1952.  Ed continued to live next door, but he became irritated that city officials underfunded the park and it looked shoddy.  He called them “knuckleheads,” and grumbled that they should return the zoo to him so he could run it.

The Santa Ana Zoo at Prentice Park

Eventually Ed moved away, and in 1959 he died at age 81.

For more than 50 years all went well at the zoo.  Monkeys played and children came to ogle.  Then, in August 2008, the city got a letter from an attorney representing one Joseph Powell, a grand-nephew of J.E. Prentice.  The letter demanded proof that the zoo had 50 monkeys or, the letter said, “we plan to proceed with our rights under the grant deed to have the property revert back to Mr. Prentice’s heirs.”

It seems the cagey Mr. Powell had visited the zoo and counted monkeys.  There were only 49, he claimed, after the death of a 35-year-old silver langur named Geni.  Within months, the count dropped again with the death of a capuchin named Monty.

The City Council began to fret.  Healthy monkeys, to live in captivity with others of their endangered species, are hard to come by.  International rules have to be followed.

Maya, right, with baby clinging to her back

Then a wondrous thing happened.  The little monkeys rose to the legal challenge mounted by Powell, and a golden lion tamarin named Maya gave birth to twins.

In ensuing months, a pair of crested capuchins named Romeo and Juliet added another offspring, bringing the monkey population to 51.

And zoo officials aren’t sitting on their tails, either.  They announced they will build their collection of “bona fide” monkeys (no lemurs or gibbons) to at least 55.  Romeo and Juliet are, after all, on loan from Brazil.

Moral: The reverter clause is legally enforceable by the Prentice heirs (and who knows how many there are), so this monkey census is serious business.

The stakes are high.  The twelve acres in central Orange County are now worth millions.

It comes down to law; the law of the jungle.

The 1949 deed, with reverter

For Love or Money

Monday, March 29th, 2010

A family tragedy; then came forgery.

GREAT FALLS, VA–With savings from their contracting business, Wu-Hung and Yeh-Mei Chen came to America.

The plan was to save their sons, Raymond and Edward, from Taiwan’s mandatory military service, and give them a better life. Once here the family settled in this suburb of Washington, DC.

Coming to America: The Chen family home

The Chens bought an upscale home on two acres, and invested in four other residential properties.  Raymond, the eldest son, went to college and majored in business so he could manage the family holdings.

But the family plan began to unravel when young Edward fell in love with Mandy, a high-school dropout and teenage mom.  His mother objected–this was not the “nice Chinese girl” she wanted for her son.

Yeh-Mei was hurt and angry, and she badgered Edward to stop seeing Mandy.  Edward fought with her, and there were heated family arguments.  Finally, the stress Edward was feeling became unbearable.  He bought a 30-30 Winchester rifle at K-Mart, and shot his mother, father and brother in their beds.

Edward told Mandy they could now be together.  He told neighbors and relatives back in Taiwan that his parents and brother had died in an auto accident.  He locked up the house, with the victims still inside, and moved in with Mandy.

Edward Chen

Edward Chen

Mandy got pregnant and Edward married her.  Soon they had a new baby daughter.

Edward lived off rental incomes for a while, but with expensive tastes and mounting bills decided to start selling the family properties.

All of the Chen properties were held in a family trust, with Raymond Chen appointed as trustee.  Edward got a new driver’s license with his photo and Raymond’s name.

Edward went about selling the properties, impersonating his dead brother.  Edward and Mandy divorced.

The family home was the last to be sold.  It was now more than four years since the killings, and the victims had yet to be removed.  But while it sat vacant, a water pipe had failed and flooded much of the house.  Floors, walls and carpeting were damaged or ruined.  There was mold.

Edward cleaned up the blood stains, and ditched his victims’ bodies in Chesapeake Bay.  He offered the house “as is” at a big discount.

A young couple bought the house, and rehabilitated it from top to bottom.

Wei-Meh Chen

Yeh Mei Chen

Edward got a new girlfriend and they began to live together.  In an unguarded moment, he told the girlfriend that he’d killed his parents and brother.  The girlfriend saw danger, and went to the police.

The police interviewed Mandy, who also knew of the killings, and Edward was arrested.

As reported by the Washington Post, Edward was surprised to be arrested and he made a taped confession.  But when the confession was thrown out, as Edward had not been read his Miranda rights, Fairfax County prosecutors became worried about their case.  They had no murder weapon, and couldn’t find the victims’ remains.  All they had to go on were statements of an ex-wife and former girlfriend.

Edward eventually took a plea bargain.  He was convicted of three counts of first degree murder, and sentenced to 36 years in prison.  He was 27 years old.

But now buyers of the five Chen properties had big problems.  They realized deeds they got from “Raymond Chen,” as trustee of the family trust, were forgeries.  The deeds were void, and ownership of the properties remained in the trust.

The trust, it turned out, had as beneficiaries the father, mother, and their “descendants.”  Upon death of the parents and all descendants, trust assets would be given to a hospital in Taiwan.

So here’s the deal:  After the killings the only “descendant” was Edward–his daughter would be born two years later.  But the law says that a killer can’t benefit from the death of his victim (the so-called “Slayer’s Rule”), so Edward could not inherit the trust assets.  But what about Edward’s daughter, was her inheritance also barred by the Slayer’s Rule? And, if so, were the buyers of the five Chen properties now guests of the hospital in Taiwan?

For these buyers, this was the proverbial riddle wrapped in an enigma….  What to do???

The buyers had title insurance, and title companies paid for lawsuits to quiet title.  A legal guardian was appointed for Edward’s minor daughter.  In time the hospital released its claims.  Title companies contributed to a $1.2 million settlement with the daughter, and five titles were confirmed by court order.  The buyers got to watch new deeds get recorded in Fairfax County land records.

Case(s) closed.

Moral:  The risk of identity theft, impersonation, forgery–whatever you choose to call it–can be covered by title insurance.