Motion for Settlement in JUDITH STOCKTON 2000 TRUST, DTD APRIL 11,2000| Trellis.Law

On August 18, 2016 a Complaint,Petition was filed involving a dispute between Litke, Rebecca A., and for Trust in the District Court of San Mateo County.

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Mary E. Pryce, Esq. (SBN 188443)
Jamay Lee, Esq. (SBN 238042)
2 Jennifer M. Stier, Esq. (SBN 286556)
Barulich Dugoni Law Group, Inc. F E E4 E a
QUW
3 400 So. El Camino Real, #1000 SAN MATEO G
San Mateo, CA 94402
4.

Telephone No.: 650.292.2900
Facsimile No.: 650.292.2901
5 Email: mag@bdlawinc.com
iamay@bdlawinc.com
6
Attorneys fer Rebecca A. Litke, Trustee
7

9 SUPERIOR COURT OF THE STATE OF CALIFORNIA

10 COUNTY OF SAN MATEO

11 In re Trust Matter of Case No. 16PR000221

12 THE JUDITH STOCKTON 2000 TRUST, ORDER SETTLING FIRST ACCOUNT AND
DATED APRIL 11, 2000. REPORT OF TRUSTEE AND PETITION FOR
13 ITS SETTLEMENT

14 Date:
Time: 9:00 a.m.
IS / Dept; 10

16
Petitioner, Rebecca A. Litke, Trustee of the Judith Stockton 2000 Trust, dated April 11, 2000 (the
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“Trust”), having filed her First Account and Report of Trustee and Petition for Its Settlement (the “First
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Account”), and the same having come on by ex parte submission on this date, the Court ﬁnds:
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I. The Trust was created by Judith Stockton, as trustor and trustee, on April 11, 2000. Judith
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Stockton died on March 11, 2015, and, as a result, Petitioner became successor trustee.
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2. Petitioner is not required to post bond, pursuant to Section 4.5 of the Trust.
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3., The beneﬁciaries of the Trust are as follows:
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a. $5,000.00 to St. Anthony’s Dining Room, San Francisco, California;
24
. b. The balance of the trust estate in equal shares to the settlor’s children, Rebecca A.
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Litke (“Rebecca”) and Jesse Litke (“Jesse”). Rebecca’s share is to be distributed outright. Jesse’s share is to

be held in trust for Jesse’s lifetime, and Jesse is to receive all net income at least quarter-annually, and
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payments of as much principal as the trustee, in the trustee’s sole discretion, deems necessary for Jesse’s
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support, maintenance, medical needs, and education. Upon Jesse’s death, the remainder of the trust
711

PRDER SETI'LING FIRST ACCOUNT CASE NO. 16PR000221
REPORT OF TRUSTEE
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’16—Pn0—00221

995309
Order
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established for his beneﬁt is to be distributed outright to Rebecca, if she is living, and if she is not then
[Q living, to Rebecca’s then living issue.
U.) 4. The First Account of Trustee covers the approximately ﬁﬁeen month period from Decedent’s

A date of death on March 1 1, 2015, through June 30, 2016 (“Account Period”). The supporting schedules to
the Summary of Account are attached as Exhibit Bto the First Account of Trustee. All disbursements were
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made in good faith and in compliance with California law.

\l 5.. Petitioner is chargeable, and is entitled to the credits, as set forth in the following account.

00
SUMMARY OF ACCOUNT
W Period of March» 11, 2015 through June 30, 2016

Charges

Assets on Hand as of March 11, 2015 (Schedule A) $11,072,968.65

Receipts Excluding Inventoried Property (Schedule B) $ 694,032.01

Gains on Sales (Schedule C) $ 50,000.00

Total Charges ‘
. ll 8

Credits
T

Disbursements During Account Period (Schedule D) $ 1,772,473.55

Distributions and Other Dispositions of Property (Schedule E) $ 1,234,112.22

Property on Hand as of June 30, 2016 (Schedule F)
Raﬁaeessasaazas:s
5 8,810,414.89

LLB—EM
Liabilities at End of Accounting (Schedule G) $ 2,476,373.25 '

6. The total value of the assets in Petitioner’s possession or control as of June 30, 2016 was
$8,810,414.89.

7. Petitioner has managed and administered the Trust, collecting income and principal and

investing the principal in the manner provided by the terms of the Trust.

8. Property on hand at the beginning of the Account Period Was $11,072,968.65.
9. The amount of receipts of income or principal was $694,032.01.
‘1‘.

N 10. Gains on sales during the Account Period total $50,000.00.

N on 11. The amount of disbursements during the Account Period was $1,772,473.55.

ORDER SETTLlNG FIRST ACCOUNT CASE NO. 16PR000221
AND REPORT or TRUSTEE
n—a 12. Distributions to or on behalf of a beneﬁciary during the Account Period was $1,234,] 12.22.

2 13. Property on hand at the end of the Account Period was $8,810,414.89.

3 14. The liabilities remaining at the end of the Account Period was $2,476,373.25.

4 15. The liabilities existing at the beginning of the Account Period were as follows: .

5 Liability Category Amount Owed

5 Credit Cards $19,330

7 Promissory Note to Non-Family $3,423

8 Unsecured Line of Credit $11,439

9 Federal Income Taxes $1 17,1 15

10 California State Income Taxes $26,734

11 Medical Bills $12,786

12 PG&E $2,881

13 Frederick Street Mortgage $246,018

14 Ashbury Street Mortgage $461,777

15 Waller Street Mortgage $286,485

15 Stewart Street Mortgages $199,624

17 Rohnerville Road Mortgages $291,196

13 Oklahoma Property Mortgage $154,376

19 San Francisco Delinquent Property Taxes $3,156
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20 San Francisco Property Tax Liens $16,683

21 San Francisco Water and Sewage Liens $1,522

22 Humboldt County Delinquent Property Taxes $3,441

23 Humboldt County Property Tax Liens. $1 1,538

24 Oklahoma Property Tax $449

25 Total $1,869,973

25 16. The following agents were hired and compensated by Petitioner as Trustee of the Trust:

27 a. Holsman & MacArthur. Petitioner, as Trustee, initially hired the law offices of

23 Holsman & MacArthur for the trust administration following the Decedent’s death on March 11, 2015.

ORDER SETTLING FIRST ACCOUNT .
CASE NO. 16PR000221
AND REPORT OF TRUSTEE
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Holsman & MacArthur was compensated by Petitioner as Trustee of the Trust for services rendered during

the Account Period in the amount of $15,451 .75.

b. Barulich Dugoni Law Group, Inc. The law ofﬁces of Barulich Dugoni Law Group,
Inc. (“Barulich Dugoni”) was hired on or about July 29, 2015, to substitute for Holsman & MacArthur.
Barulich Dugoni was compensated by Petitioner as Trustee of the Trust for services rendered during the
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Account Period in the amount of $1 88,271.91.

c. Holmes Holmes &. Neisent. Holmes, Holmes & Neisent was hired as Oklahoma
counsel and compensated by Petitioner as Trustee of the Trust for services rendered during the Account
Period for matters related to Oklahoma assets owned by the Decedent and Decedent’s Trust in the amount of

$15,000.00.

d. Robert Zigler. Robert Zigler was hired and compensated by Petitioner as Trustee of

the Trust for services rendered during the Account Period with regard to initial estate administration advice,

as Mr. Zigler was the Decedent’s estate planning counsel, in the amount of $1,080.00.
e. Engelman Accountancy. Engelman Accountancy was hired and compensated by

Petitioner as Trustee of the Trust for services rendered during the Account Period regarding income taxes,

estate taxes, and the Trust accounting, in the amount of $138,271 .42.
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17. Petitioner paid herself $39, 100.00 in trustee fees during the Account Period.

18. Petitioner explained the following account issues and expenditures:

a. The property on hand at the beginning of the Account Period included only 36,5 13.83

in cash and liquid assets. Petitioner loaned $18,700.82 to the Trust to provide liquidity for the trust

administration.

b. The real property commonly known as 506-5 08 Ashbury Street, San Francisco,

California (“Ashbury Property”) carried the largest mortgage liability. Petitioner listed the Ashbury property

for sale with Paragon Commercial Brokerage and secured a sale of $2,480,000.00 that closed escrow on

March 31, 2016. The sale price resulted in a gain to the Trust of $50,000.00 over the date of death value of

$2,430,000.00, which is reﬂected in Schedule C of the First Account. The costs of sale are more particularly
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set forth on Schedule D of the First Account.

ORDER SE’ITLING FIRST ACCOUNT CASE NO. 16PR000221
AND REPORT OF TRUSTEE
c. The Decedent’s gross estate for U.S. Estate Taxes was $1 1,118,549.00, resulting in an

estate tax liability of $1,337,602.00. The gross estate for estate tax purposes differs somewhat from the
property on hand at the beginning of the account period, as some assets were includable in Decedent’s

taxable estate for Federal Estate Tax purposes, but are not considered part of the Trust estate for accounting

purposes. The following assets were included on the Decedent’s U.S. Estate Tax Return, but not included in
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the First Account: .

Asset Date of Death
Value
Bank of America Mortgage Escrow Account $ 1,493.00
ending -4897 relating to the Stewart Property

Chase Mortgage Escrow Account ending -6368 $ 1,297.00
relating to the Frederick Property

Undeposited rent checks received prior to $29,290.00
Decedent’s date of death

2014 Federal Income Tax Deposit $10,000.00

2014 California Income Tax Deposit $ 3,500.00

Total $45,580.00

The Bank of America Mortgage Escrow Account and the Chase Mortgage Escrow

Account are prepaid escrow accounts for taxes and insurance due against the Stewart Property and the

Frederick Property, respectively. The rent checks received before date of death, but not deposited until after
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the Decedent’s date of death, are reﬂected as receipts on Schedule B of the First Account.
d. The Ashbury Property was a six (6) unit rental property that Petitioner, as Trustee,

managed during the period of the account, until the sale of the Ashbury property on March 31, 2016. The
units consist of ﬁve (5) one-bedroom apartments and one (1) studio apartment. All six (6) of the units at the

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Ashbury Property were occupied during Account Period until the sale of the property. In addition to the six

(6) apartment units, the garage was also rented. The Ashbury Property was subject to San Francisco rent

control ordinances.

e. The real property commonly known as 543-547 Frederick Street,San Francisco,

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California (“Frederick Property”) is a fourteen (14) unit rental prOperty which the Trustee has managed

ORDER SETTLING FIRST ACCOUNT CASE NO. 16PR000221
AND REPORT OF TRUSTEE
during the Account Period. The Frederick Property consists of twelve (12) residential apartments and two (2)

commercial ofﬁce units. Additionally, Petitioner began renting a storage unit to a tenant during the Account

Period. All fourteen (14) of the units at the Frederick Property were occupied, with only minimal periods of

vacancy in two (2) of the units. A studio units is occupied by Rebecca, who does not pay rent to the Trust for

her occupancy. The Frederick Property is subject to San Francisco rent control ordinances.
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f. The real property commonly known as 1733-1737 Waller Street, San Francisco,

California (“Waller Property”) is a three (3) unit rental property which the Trustee has managed during the

Account Period. The Waller Property is subject to San Francisco rent control ordinances. Only one (1) unit at

the Waller Property was rented at the Decedent’s death and remained rented during the period of the First

Account.

g. The real property commonly known as l 164 Stewart Street, Fortuna, California

(“Stewart Property”) is a single family home which Petitioner has managed dming the period ofthe account.

The Stewart Property was the Decedent’s legal residence and contained the Decedent’s personal ﬁles and

tangible personal property.

h. The real properties commonly known 2247 Rohnerville Road, Fortuna, California,

and 2247-A Rohnerville Road, Fortuna, California (“Rohnerville Properties”) are single family homes on

adjacent lots, which Petitioner has remotely managed during the Trust administration. Both Rohnerville

Properties are used by Jesse, with his primary address at the 2247-A Rohnerville property. Petitioner alleged
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that Jesse has access to, frequently uses, and has personal property stored at the 2247 Rohnerville property.

Jesse does not pay rent for his occupancy of either 2247 or 2247-A Rohnerville Properties. Six River’s Real

Estate provided an opinion of the fair market rental value of the Rohnerville Properties, which was attached

as Exhibit D to the First Account. Per Ms. August’s evaluation, the 2247 Rohnerville fair rental value is

$2,200.00 per month, and the 2247-A fair rental value is $700.00 per month, for a total rental value of
$2,900.
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i. At the time of her death, Decedent owned approximately 16] surface acres of land in

Payne County, Oklahoma, which includes a house and land leased by the Decedent to a farmer for modest

N \l rent. Additionally, the Decedent owned approximately 40 acres of oil and mineral rights, some of which is
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N 00 located under the 161 surface acres. From April 25, 2016, through May 2, 2016, Petitioner traveled to

ORDER SET'I‘LTNG FIRST ACCOUNT CASE NO. 16PR000221
AND REPORT OF TRUSTEE
I—A
10klaho'ma toine‘e't with localleg‘al‘counsel,_'Mark_ Holmes,.,Es_q.
of Holmes, Holmes & Neisent, with regard-
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to the surface, and oil and mineral interests, to meet the farming tenant, and to personally View the status and

w condition of the Oklahoma property interests and attend to repairs as need. The Decedent also owned oil and

4: mineral interests in her individual name, together with a partial interest in oil and mineral interests still

u: remaining in the Decedent’s mother’s name (i.e., Petitioner’s; grandmother, Eileen Stockton, who died on

as February 9, 2000). Petitioner engaged Mr. Holmes to complete .probates of the Decedent’s and Eileen
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Stockton’s interests in order to collect those interests into the Trust.
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j. Petitioner lives in San Francisco and did not own a motor vehicle at the time of the
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so Decedent’s death. Before the Decedent’s death, Petitioner used the Decedent’s 2005 Ford Truck (the
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|—.- “Truck”). to handle errands and for tasks related to the Decedent’s real properties in San Francisco and

11'; Humboldt County. At the beginning of the administration, Petitioner continued to use the Truck for

12 transportation to and from the Trust’s real properties in Humboldt County, the Trust’s real properties in San

13 Francisco, various San Francisco City and County department ofﬁces, and to San Mateo, California to attend

14 meetings with herattorneys, accountants, bankers, and others for Trust business. At Decedent’s death, the
15 Truck was valued at $12,964.00. In July 2015, Petitioner paid approximately $6,000 for major repairs to the

16. Truck. In January 2016, the Truck required a new engine at an-approximate cost of $8,000. Based on the

17 signiﬁcant cost of repair in comparison to the‘value of the vehicle, Petitioner declared the vehicle inoperable.

1s As transportation between San Francisco County and Humboldt County for the Trust’s real estate and for

19 trust business with professionals during the complex trust administration, it was necessary for the Petitioner
20 to use the services of car rental companies, taxis, and public transportation in order to travel between

21 Humboldt County, San Francisco County and San Mateo County for Trust business. These costs were related ‘

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22 to trust business, and not to Petitioner’s personal business.

k. Distributions to Beneﬁciaries. During the period of the First Account,
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23 Petitioner

24 distributed $5,000.00 to St. Anthony Foundation pursuant to the terms of the Trust, as reﬂected on Schedule

25 E of the First Account. In addition, Petitioner made the folldwing preliminary distributions:

26 i. Distributions of Be] Rock and Oklahoma Real Properties. On June 6, 2016

27, Petitioner distributed Eel Rock to herself as beneﬁciary, and distributed cash equivalent to the appraised

28 value of Be] Rock as of the settlor’s date of death to the Jesse S. ~Litke Trust created under the Judith

ORDER SETTLING FIRST ACCOUNT CASE No. 16PR000221
AND REPORT or TRUSTEE .
f“.

IStocktdn 2000'Tifust, dated March 1], 2000 :(the"‘.lesse Trust”). As Trustee, Petitioner also made a ﬁrrther
distribution of $50,000.00 cash to each beneﬁciary. On or about June 6, 2016, Petitioner distributed

$600,000.00 total to the Jesse Trust, and executed a Deed from the Trust distributing Be] Rock to Petitioner
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in her individual capacity and distributed $50,000.00 cash to Petitioner in her individual capacity.

ii. Preliminm Monthly Distributions to Beneﬁciaries. Beginning in May 2015,

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Petitioner began making monthly preliminary distributions of $500.00 to Jesse as beneﬁciary, to assist with

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living expenses. Petitioner also distributed approximately $500.00 monthly to herself as a beneﬁciary.

Petitioner made additional distributions from the Trust for the beneﬁt of Jesse by paying Jesse’s PG&E bill's, '

a medical expense, and water/sewer and security costs (including the cost of a landline for the security
system) for the 2247-A Rohnerville property occupied by Jesse.As Trustee, Petitioner made distributions for

her beneﬁt as a beneﬁciary by paying her PG&E bill, and for some food, gas, and other living expenses.
(

Beginning in May 2016, Petitioner doubled the monthly distribution to $1,000.00 per month to each

beneﬁciary. Alter paying off additional debts and income tax obligations of the Decedent and the Trust,
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Petitioner again doubled themonthly distributions to. $2,000.00 in June 2016. As reﬂected on Schedule E, a

total of $1 6,606.1 1 was distributed to or for the beneﬁt of Jesse during the account period. As reﬂected on
Schedule. E, a total of $12,506.] 1 was distributed to or 'for the beneﬁt of Petitioner as beneﬁciary during the

account period.

19. All investments shown in the account were authorized and proper investments underthe laws
of the State of California and the Trust. Petitioner has kept all cash of the Trust in interest bearing accounts .

or other investments authoﬁzed by law, except for such amounts as are reasonably necessary for the orderly

administration of the Trust.
20. The statement of receipts and disbursements of principal andjncome that have occurred since

the last account in the Trust is. shown on Exhibit B, Schedule B (Receipts) in the First Account of Trustee,

and Exhibit B, Schedule D (Disbursements) in the First Account of Trustee.
21 . The statement of assets of the Trust as of the end of the Account Period is listed on Exhibit B, .

Schedule F in the First Account of Trustee.

22. Petitioner requests Court review of her account and her actions as Successor Trustee.

23. No requests for special notice have been ﬁled.

ORDER SE'I'I‘LING FIRST ACCOUNT CASE No. 16PR000221
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AND REPORT OF TRUSTEE
24. The following parties are entitled to notice, as required by Probate Code §l7203:
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Name Relationship Address
Rebecca A. Litke Trustee/Beneﬁciary c/o Mary E. Pryce, Esq.
0-)
Barulich Dugoni Law Group, Inc.
400 S. El Camino Real, Ste. 1000
A
San Mateo, CA 94402
U!

Jesse Litke Beneﬁciary 2247A Rohnerville Road
Fortuna, CA 95540
G's

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Christina Nelson, Esq. Counsel for Jesse Litke Greene, Radovsky, et al
00 4 Embarcadero Center, Suite 4000
San Francisco, CA 94111
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Kristofer W. Biom, Esq. Counsel for Jesse Litke Crist, Biom, et al
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2479 East Bayshore Road
Suite 155
Palo Alto, CA 94303

IT IS ORDERED AND ADJ UDGED that:
1. Notice has been given as required by law;

2. The First Account and Report of Trustee, Rebecca A. Litke, and Petition for Its Settlement

covering the period of March 1 l, 2015 through June 30, 2016 is settled, allowed, and approved as ﬁled; and
3. All acts and transactions set forth in the First Account and Report of Trustee undertaken by
Rebecca A. Litke, as Trustee of the Judith Stockton 2000 Trust, dated April 1l, 2000, during the period of
the account are conﬁrmed and approved.
mqmmhﬁmagagsaaiaﬁzs

DATEDfEB
2 1 2013
,
%/%—. JUDGE OF THE SUPERIOR COURT

APPROVED AS TO FORM AND CONTENT:

(ﬁg:
Crist Biom Shepherd Roskoph APC

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Dated. gigcjﬂ‘ﬁ WWﬁm, @omeys for
Jesse ard Litke

ORDER SETTLING FIRST ACCOUNT CASE NO. 16PR000221
AND REPORT OF TRUSTEE

Case Info

Judge

George A. Miram Track Judge’s New Case

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Document Filed Date

February 21, 2018

Case Filing Date

August 18, 2016

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Complaint,Petition: JUDITH STOCKTON 2000 TRUST, DTD APRIL 11,2000

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