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Mary E. Pryce, Esq. (SBN 188443)
Jamay Lee, Esq. (SBN‘23 8042)
Jennifer M. Stier, Esq. (SBN 286556)
Barulich Dugoni Law Group, Inc. .
400 So. El Camino Real, #1000
San Mateo, CA 94402
E E E, E59
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SAN WEE?) (“QUEEN
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Telephone No.: 650.292.2900 ‘
\OWNQUl-hlJJNI—t
Facsimile No.: 650.292.2901 . a . ,
Email: maxy@bdlawinc.com
‘
FEB ,9 5 2018 ,
1'amay@bdlawinc.com
Attorneys for Rebecca A. Litke, Trustee
SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF SAN MATEO
In re Trust Matter of Case No. 16PR000221
THE JUDITH STOCKTON 2000 TRUST, NOTICE OF ENTRY 0F ORDER SETTLING
DATED APRIL 11, 2000. FIRST ACCOUNT AND REPORT OF
TRUSTEE AND PETITION FOR ITS
SETTLEMENT
7 “A _‘fl\.
1Eiéa0§01327
NEG z
Entry of Order .
3:55;! :
BY FAX
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wflQM-PWNl—‘OKOOONONU‘I-F-WNP‘O
TO PERSONS INTERESTED IN THE ABOVE-ENTITLED MATTER AND TO THEIR
.
ATTORNEYS OF RECORD:
NOTICE IS HEREBY GIVEN that on February 21, 2018, the Court, by the Hon. George A.
Miram, entered its Order Settling First Account and Report of Trustee and Petition for its Settlement, a copy
of which is attached as Exhibit “A.”
Dated: February 23, 2018
4%
Barulich Dugoni Law Group, Inc.
Jamay Leg—J
Y
Attorneys for Rebecca A. Litke, Trustee of the
Judith Stockton 2000 Trust
1
NOTICE OF ENTRY OF ORDER SETTLING FIRST ACCOUNT CASE NO: 16PR000221
AND REPORT OF TRUSTEE
PROOF OF SERVICE
[C.C.P. §§ 1013, 1013A]
The undersigned declares:
I am employed in the County of San Mateo, State of California. I am over the age of 18 years
and not a party to the within action; I am employed by the Barulich Dugoni Law Group, Inc., 400 So. El
Camino Real, Suite 1000, San Mateo, California 94402.
\OOOQQUI-tr—A
On February 23, 2018, I served the foregoing document(s) described as follows:
NOTICE OF ENTRY OF ORDER SETTLING FIRST ACCOUNT AND REPORT OF
TRUSTEE AND PETITION FOR ITS SETTLEMENT
on all parties in said action by causing a true copy thereof to be
[ ] Transmitted via facsimile to the facsimile number set forth below before 5:00 pm. .on this date;
[XX] Placed in a sealed envelope with postage thereon fully prepaid in the designated area for outgoing
'
mail;
[ ] Transmitted by sending a file of the above documents(s) via electronic transmission
(e-mail) using my business e-mail address (andrew@bdlawinc.com) to the e-mail address
designated for each party identified below. I did not receive, within a reasonable time after the
. transmission, any electronic message or other indication that the transmission was unsuccessful.
addressed to the person(s) on whom it is to be served, whose name(s) and address(es) is as follows:
NNNNNNNNNi—‘I—‘b—lr—IHD—lv—IP‘HD—fi
Jesse Edward Litke
c/o Christina G. Nelson, Esq.
Scott A. Fraser, Esq.
Greene Radovsky Maloney Share & Hennigh
4 Embarcadero Center, Suite 4000
San Francisco, CA 94111
PETITIONER
Christina Gallagher Nelson, Esq.
Scott A. Fraser, Esq.
Greene Radovsky Maloney Share & Hennigh LLP
4 Embarcadero Center, Suite 4000
San Francisco, CA 941 11
ATTORNEY TO PETITIONER JESSE EDWARD LITKE
Kristopher W. Biorn, Esq.
Crist, Biorn, Shepherd & Roskoph
2479 East Bayshore Road, Suite 155
Palo Alto, CA 94303
ATTORNEY TO PETITIONER JESSE EDWARD LITKE
2
NOTICE OF ENTRY OF ORDER SETTLING FIRST ACCOUNT CASE NO. 16PR000221
AND REPORT OF.TRUSTEE
St. Anthony’s Dining Room
50 Golden Gate Avenue
N
San Francisco, CA 941 15
BENEFICIARY
4:50.)
W
I declare under penalty of perjury under the laws of the State of California that the foregoing is
U}
true and correct.
O\ Executed on February 23, 2018, at San Mateo, California.
\I
ANDREW PARKER
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NOTICE OF ENTRY OF ORDER SETTLING FIRST ACCOUNT CASE NO. 16PR000221
AND REPORT OF TRUSTEE
‘
EXHIBIT A
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‘E -
ENEEESE
Mary . Pryce, Esq. (83mm) MEET?
N
enni er M. tier, Esq. (S 6 5
'
Barulich Dugoni Law Group, Inc. . FEB 2 1 2013
400 So. El Camino Real, #1000
.
San Mateo, CA 94402 ‘
-
Clerk of the Superior Court
Telephone No.: 650.292.2900 Rabeeea Krill ______..
By
\DWNQUIAUNi—a
Facsrmile No.: 650.292.2901 WV CLERK
Email: mau@bdlawinc.com .
iamay@bdlawinc.com
Attorneys for Rebecca A. Litke, Trustee
SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF SAN MATEO
In re Trust Matter of Case No. 16PR000221
THE JUDITH STOCKTON 2000 TRUST, ORDER SE’ITLING FIRST ACCOUNT AND
DATED APRIL 11, 2000. REPORT OF TRUSTEE AND PETITION FOR
ITS SETTLEMENT
Date:
Time: 9:00 am.
~/ .
Dept: 10
Petitioner, Rebecca A. Litke, Trustee of the Judith Stockton 2000 Trust, dated April I 1, 2000 (the
“’I‘rust”), having filed her First Account and Report of Trustee and
PetitiOn for Its Settlement (the “First
Account”), and the same having come on by ex parte submission on this date, the Court finds:
£388§833833388353=8
l. The Trust was created by Judith Stockton, as trustor and trustee, on April 1 I, 2000. Judith
Stockton died on March 11, 2015, and, as a result, Petitioner became successor trustee.
2. Petitioner is not required to post bond, pursuant to Section 4.5 of the Trust.
3. The beneficiaries of the Trust are as follows:
3. $5,000.00 to St. Anthony’s Dining Room, San Francisco, California;
b. The balance of the trust estate in equal shares to the settlor’s children, Rebecca A.
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-mmually, and
paymentsof as much principal as the trustee, in the trustee’s sole discretion, deems necessary for Jesse's
......,...
support, maintenance, medical needs, and education. Upon Jesse’s death, the remainder of the
a-..
trust
.
l
'
ORDER SETTLING FIRST ACCOUNT
CASE NO. 16PR000221
AND REPORT or TRUSTEE
.e--..-y—t__.m.¢.fi.mm_
established for his benefit is to be distributed outright to Rebecca, if she is living, and if she is not then
living, to Rebecca’s then living issue.
.
4. The First Account of Trustee covers the approximately fifteen month period
from Decedent’s
date of death on March 1 l, 2015, through June 30, 2016 (“Account Period”). The supporting schedules
to
the Summary ofAccount are attached as Exhibit B to the First
Account of Trustee. All disbursements were
\DOOQQUIANNt—n
made in good faith and in compliance with California law.
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5. Petitioner is chargeable, and is entitled to the credits, as set forth in the following
account.
SUMMARY OF ACCOUNT
Period of March 11, 2015 through June 30, 2016
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Charges
- I
Assets on Hand as of March 11, 2015 (Schedule A)
_
$11,072,968.65
I
Receipts Excluding Inventoried Property (Schedule B) .I
$ 694,032.01
Gains on Sales (Schedule C)
Total Charges
I
Disbursements During Account Period (Schedule D)
Credits
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W
5
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50,000,119
‘
.
$ 1,772,473.55
Distributions and Other Dispositions of Property (Schedule E) . $ 1,234,112.22
mqafifiafifissazaazmszs
Property on Hand as of June 30, 2016 (Schedule F)
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Liabilities at End of Accounting (Schedule G)
6. The total value
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of the assets in Petitioner’s possession or control as of June 30, 2016 was
W
SAM
$ 2,476,373.25
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$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.
NNN
10. Gains on sales during the Account Period total $50,000.00.
11. The amount of disbursements during the Account Period was
$1,772,473.55.
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ORDER SETTLlNG FIRST ACCOUNT
CASE NO. 16PR000221
AND REPORT OF TRUSTEE
12. Distributions to or on behalf of a‘beneficiary during the Account Period was $1 ,234,1 12.22.
13. Property on hand at the end ofthe Account Period was $8, 810,414. 89.
14. The liabilities remaining at the end of the Account Period was $2, 476
,37325.
15. The liabilities existing at the beginning of the Account Period were as follows:
WMQGM-kWNr—n
Liability Category Amount Owed
Credit Cards $19,330
Promissory Note to Non-Family $3,423
Unsecured Line of Credit $11,439
Federal Income Taxes $117,115
California State Income Taxes $26,734
Medical Bills $12,786
'
PG&E $2,881“
Frederick Street Mortgage $246,018
Ashbury Street Mortgage $461,777
Waller Street Mortgage .
$286,485
,
Stewart Street Mortgages $199,624
Rohnerville Road Mortgages $291,196
Oklahoma Property Mortgage $154,376
Sefiffiweaseesaazoszs
San Francisco Delinquent Property Taxes $3,156
San Francisco Property Tax Liens $16,683
San Francisco Water and Sewage Liens $1,522
Humboldt County Delinquent Property Taxes $3,441
Humboldt County Property Tax Liens 31 1,538
Oklahoma Property Tax $449
[
Total $1,869,973
N 16. The following agents were hired and compensated by Petitioner as Trustee of the
Trust:
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a. Holsman & MacArthur. Petitioner, as Trustee, initially hired the law oflices of
28 Holsman & MacArthur for the trust administration following the Decedent’s death on March 11, 2015.
3
I
ORDER SETTLING FIRST ACCOUNT
CASE NO. 16PR000221
AND REPORT OF TRUSTEE
Holsman & MacArthur was compensated by Petitioner as Trustee of the Trust
H
for services rendered during
19 the Account Period in the amormt of$15,45i .75.
w b. Barulich Dugoni Law Group, IncI The law ofi'ices of Barulich Dugoni Law
Group,
A inc. (“Barulich Dugoni’i) was hired on or about July 29, 2015, to
substitute for Holsman & MacArthur.
VI Barulich Dugoni was compensated by Petitioner as Trustee of the Trust for services rendered during the
Account Period in the amount of $1 88,271.91.
\l_0\
c. Holmes, Holmes & Neisent. Holmes, Holmes & Neisent was hired as Oklahoma
6° counsel and compensated by Petitioner as Trustee of the Trust for services rendered during the Account
‘0 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. Engelmgn Amwntang. 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.
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 ofthe Account Period included
only $6,5 13.83
QSmEESSBBESSEEESSZE
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
N $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 forthon Schedule D 'ofthe First Account.
ORDER SE’I'I‘LING FIRST ACCOUNT
CASE NO. IGPROOOZZI
AND REPORT OF TRUSTEE ,
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c. The Decedent’s gross estate for us. Estate Taxes was $1 1,1 18,549.00, resulting in an
estate tax liability of $1,337,602.00. The gross estate for estate tax purposes difl‘ers 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 ibr accounting
\DODQOUIAWNv—n
purposes. The following assets were included on the Decedent’s U.S. Estate Tax Return, but not included in
the First Account:
‘
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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 45368 $ 1,297.00
relating to the Frederick Property
Undeposited rent checks received prior to $29,290.00
Decedent’s date of death
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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
sensessseasaaseszs
Frederick Preperty, respectively. The rent checks receivedbefore date of death, but not deposited until after
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
y
units consist of five (5) one-bedroom apartments and one (1) studio apartment. All six (6) of the units atthe
Ashbury Propertywere 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 commenly known as 543-547 Frederick Street, San Francisco,
N 06
California (“Frederick Property”) is a fourteen (14) unit rental property which the Trustee has managed
_
5
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 (l 4) 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
\OOOQONUI-R.UJN—I
her occupancy. The Frederick Property is subject to San Francisco rent control
ordinances.
f. The real property commonly known as 1733-1737 Waller Street, San
Francisco.
California (“Waller Preperty”) 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, Fortune, California
(“Stewart Property”) is a single family home which Petitioner has managed during
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 knowu 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 Rolmerville
gflmfifififih’gsafia‘aifififla
property. Petitioner alleged
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 ofthe fair market rental value ofthe 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.
i. At the time ofher death, Decedent owned approximately 16] surface acres of land in
N Payne County, Oklahoma, which includes a house and land leased
by the Decedent to a farmer for modest
rent. Additionally, the Decedent owned approximately 40 acres of oil and
mineral rights, some of which is
located under the 16] surface acres. From April 25, 2016, through May 2, 2016, Petitioner traveled to
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ORDER SETTLING FIRST ACCOUNT
CASE NO. 16PR000221
AND REPORT OF TRUSTEE
Oklahoma to meet with local legal counsel, Mark Holmes, Esq. of Holmes, Holmes &
Neisent, with regard
to the surface, and oil and mineral interests, to meet the farming tenant, and to personally view
the status and
condition of the Oklahoma property interests and attend to repairs as
need. The Decedent also owned oil and
mineral interests in her individual name, together with a partial interest in oil and mineral
interests still
\OMQGUI-BWNp—n
remaining in the Decedent’s mother’s name (i.e., Petitioner’s grandmother, Eileen Stockton,
who died on
February 9, 2000). Petitioner engaged Mr. Holmes to complete probates of the Decedent’s and Eileen
Stockton’ s interests 1n order to collect those interests into the Trust.
j. Petitioner lives 1n San Francisco and did not own amotor vehicle at the time of the
Decedent’s death. Before the Decedent’s death, Petitioner used the Decedent’s
2005 Ford Truck (the
“Truck”)
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Mary E. Pryce, Esq. (SBN 188443) Jamay Lee, Esq. (SBN‘23 8042) Jennifer M. Stier, Esq. (SBN 286556) Barulich Dugoni Law Group, Inc. . 400 So. El Camino Real, #1000 San Mateo, CA 94402 E E E, E59 "es E SAN WEE?) (“QUEEN .1. . Telephone No.: 650.292.2900 ‘ \OWNQUl-hlJJNI—t Facsimile No.: 650.292.2901 . a . , Email: maxy@bdlawinc.com ‘ FEB ,9 5 2018 , 1'amay@bdlawinc.com Attorneys for Rebecca A. Litke, Trustee SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN MATEO In re Trust Matter of Case No. 16PR000221 THE JUDITH STOCKTON 2000 TRUST, NOTICE OF ENTRY 0F ORDER SETTLING DATED APRIL 11, 2000. FIRST ACCOUNT AND REPORT OF TRUSTEE AND PETITION FOR ITS SETTLEMENT 7 “A _‘fl\. 1Eiéa0§01327 NEG z Entry of Order . 3:55;! : BY FAX lllllllllllllllllllllllllllll NNNNNNNNNHHHD—‘r—‘h—dr—D—‘r—tp—A 7 _ m_ __ _,/ . wflQM-PWNl—‘OKOOONONU‘I-F-WNP‘O TO PERSONS INTERESTED IN THE ABOVE-ENTITLED MATTER AND TO THEIR . ATTORNEYS OF RECORD: NOTICE IS HEREBY GIVEN that on February 21, 2018, the Court, by the Hon. George A. Miram, entered its Order Settling First Account and Report of Trustee and Petition for its Settlement, a copy of which is attached as Exhibit “A.” Dated: February 23, 2018 4% Barulich Dugoni Law Group, Inc. Jamay Leg—J Y Attorneys for Rebecca A. Litke, Trustee of the Judith Stockton 2000 Trust 1 NOTICE OF ENTRY OF ORDER SETTLING FIRST ACCOUNT CASE NO: 16PR000221 AND REPORT OF TRUSTEE PROOF OF SERVICE [C.C.P. §§ 1013, 1013A] The undersigned declares: I am employed in the County of San Mateo, State of California. I am over the age of 18 years and not a party to the within action; I am employed by the Barulich Dugoni Law Group, Inc., 400 So. El Camino Real, Suite 1000, San Mateo, California 94402. \OOOQQUI-tr—A On February 23, 2018, I served the foregoing document(s) described as follows: NOTICE OF ENTRY OF ORDER SETTLING FIRST ACCOUNT AND REPORT OF TRUSTEE AND PETITION FOR ITS SETTLEMENT on all parties in said action by causing a true copy thereof to be [ ] Transmitted via facsimile to the facsimile number set forth below before 5:00 pm. .on this date; [XX] Placed in a sealed envelope with postage thereon fully prepaid in the designated area for outgoing ' mail; [ ] Transmitted by sending a file of the above documents(s) via electronic transmission (e-mail) using my business e-mail address (andrew@bdlawinc.com) to the e-mail address designated for each party identified below. I did not receive, within a reasonable time after the . transmission, any electronic message or other indication that the transmission was unsuccessful. addressed to the person(s) on whom it is to be served, whose name(s) and address(es) is as follows: NNNNNNNNNi—‘I—‘b—lr—IHD—lv—IP‘HD—fi Jesse Edward Litke c/o Christina G. Nelson, Esq. Scott A. Fraser, Esq. Greene Radovsky Maloney Share & Hennigh 4 Embarcadero Center, Suite 4000 San Francisco, CA 94111 PETITIONER Christina Gallagher Nelson, Esq. Scott A. Fraser, Esq. Greene Radovsky Maloney Share & Hennigh LLP 4 Embarcadero Center, Suite 4000 San Francisco, CA 941 11 ATTORNEY TO PETITIONER JESSE EDWARD LITKE Kristopher W. Biorn, Esq. Crist, Biorn, Shepherd & Roskoph 2479 East Bayshore Road, Suite 155 Palo Alto, CA 94303 ATTORNEY TO PETITIONER JESSE EDWARD LITKE 2 NOTICE OF ENTRY OF ORDER SETTLING FIRST ACCOUNT CASE NO. 16PR000221 AND REPORT OF.TRUSTEE St. Anthony’s Dining Room 50 Golden Gate Avenue N San Francisco, CA 941 15 BENEFICIARY 4:50.) W I declare under penalty of perjury under the laws of the State of California that the foregoing is U} true and correct. O\ Executed on February 23, 2018, at San Mateo, California. \I ANDREW PARKER 00 \D 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25, 26 27 28' 3 NOTICE OF ENTRY OF ORDER SETTLING FIRST ACCOUNT CASE NO. 16PR000221 AND REPORT OF TRUSTEE ‘ EXHIBIT A ' ‘E - ENEEESE Mary . Pryce, Esq. (83mm) MEET? N enni er M. tier, Esq. (S 6 5 ' Barulich Dugoni Law Group, Inc. . FEB 2 1 2013 400 So. El Camino Real, #1000 . San Mateo, CA 94402 ‘ - Clerk of the Superior Court Telephone No.: 650.292.2900 Rabeeea Krill ______.. By \DWNQUIAUNi—a Facsrmile No.: 650.292.2901 WV CLERK Email: mau@bdlawinc.com . iamay@bdlawinc.com Attorneys for Rebecca A. Litke, Trustee SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN MATEO In re Trust Matter of Case No. 16PR000221 THE JUDITH STOCKTON 2000 TRUST, ORDER SE’ITLING FIRST ACCOUNT AND DATED APRIL 11, 2000. REPORT OF TRUSTEE AND PETITION FOR ITS SETTLEMENT Date: Time: 9:00 am. ~/ . Dept: 10 Petitioner, Rebecca A. Litke, Trustee of the Judith Stockton 2000 Trust, dated April I 1, 2000 (the “’I‘rust”), having filed her First Account and Report of Trustee and PetitiOn for Its Settlement (the “First Account”), and the same having come on by ex parte submission on this date, the Court finds: £388§833833388353=8 l. The Trust was created by Judith Stockton, as trustor and trustee, on April 1 I, 2000. Judith Stockton died on March 11, 2015, and, as a result, Petitioner became successor trustee. 2. Petitioner is not required to post bond, pursuant to Section 4.5 of the Trust. 3. The beneficiaries of the Trust are as follows: 3. $5,000.00 to St. Anthony’s Dining Room, San Francisco, California; b. The balance of the trust estate in equal shares to the settlor’s children, Rebecca A. 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-mmually, and paymentsof as much principal as the trustee, in the trustee’s sole discretion, deems necessary for Jesse's ......,... support, maintenance, medical needs, and education. Upon Jesse’s death, the remainder of the a-.. trust . l ' ORDER SETTLING FIRST ACCOUNT CASE NO. 16PR000221 AND REPORT or TRUSTEE .e--..-y—t__.m.¢.fi.mm_ established for his benefit is to be distributed outright to Rebecca, if she is living, and if she is not then living, to Rebecca’s then living issue. . 4. The First Account of Trustee covers the approximately fifteen month period from Decedent’s date of death on March 1 l, 2015, through June 30, 2016 (“Account Period”). The supporting schedules to the Summary ofAccount are attached as Exhibit B to the First Account of Trustee. All disbursements were \DOOQQUIANNt—n made in good faith and in compliance with California law. ' 5. Petitioner is chargeable, and is entitled to the credits, as set forth in the following account. SUMMARY OF ACCOUNT Period of March 11, 2015 through June 30, 2016 ' Charges - I Assets on Hand as of March 11, 2015 (Schedule A) _ $11,072,968.65 I Receipts Excluding Inventoried Property (Schedule B) .I $ 694,032.01 Gains on Sales (Schedule C) Total Charges I Disbursements During Account Period (Schedule D) Credits ‘ W 5 ' ‘ 50,000,119 ‘ . $ 1,772,473.55 Distributions and Other Dispositions of Property (Schedule E) . $ 1,234,112.22 mqafifiafifissazaazmszs Property on Hand as of June 30, 2016 (Schedule F) ' Liabilities at End of Accounting (Schedule G) 6. The total value ’ ' ' of the assets in Petitioner’s possession or control as of June 30, 2016 was W SAM $ 2,476,373.25 ' $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. NNN 10. Gains on sales during the Account Period total $50,000.00. 11. The amount of disbursements during the Account Period was $1,772,473.55. 2 ORDER SETTLlNG FIRST ACCOUNT CASE NO. 16PR000221 AND REPORT OF TRUSTEE 12. Distributions to or on behalf of a‘beneficiary during the Account Period was $1 ,234,1 12.22. 13. Property on hand at the end ofthe Account Period was $8, 810,414. 89. 14. The liabilities remaining at the end of the Account Period was $2, 476 ,37325. 15. The liabilities existing at the beginning of the Account Period were as follows: WMQGM-kWNr—n Liability Category Amount Owed Credit Cards $19,330 Promissory Note to Non-Family $3,423 Unsecured Line of Credit $11,439 Federal Income Taxes $117,115 California State Income Taxes $26,734 Medical Bills $12,786 ' PG&E $2,881“ Frederick Street Mortgage $246,018 Ashbury Street Mortgage $461,777 Waller Street Mortgage . $286,485 , Stewart Street Mortgages $199,624 Rohnerville Road Mortgages $291,196 Oklahoma Property Mortgage $154,376 Sefiffiweaseesaazoszs San Francisco Delinquent Property Taxes $3,156 San Francisco Property Tax Liens $16,683 San Francisco Water and Sewage Liens $1,522 Humboldt County Delinquent Property Taxes $3,441 Humboldt County Property Tax Liens 31 1,538 Oklahoma Property Tax $449 [ Total $1,869,973 N 16. The following agents were hired and compensated by Petitioner as Trustee of the Trust: ' a. Holsman & MacArthur. Petitioner, as Trustee, initially hired the law oflices of 28 Holsman & MacArthur for the trust administration following the Decedent’s death on March 11, 2015. 3 I ORDER SETTLING FIRST ACCOUNT CASE NO. 16PR000221 AND REPORT OF TRUSTEE Holsman & MacArthur was compensated by Petitioner as Trustee of the Trust H for services rendered during 19 the Account Period in the amormt of$15,45i .75. w b. Barulich Dugoni Law Group, IncI The law ofi'ices of Barulich Dugoni Law Group, A inc. (“Barulich Dugoni’i) was hired on or about July 29, 2015, to substitute for Holsman & MacArthur. VI Barulich Dugoni was compensated by Petitioner as Trustee of the Trust for services rendered during the Account Period in the amount of $1 88,271.91. \l_0\ c. Holmes, Holmes & Neisent. Holmes, Holmes & Neisent was hired as Oklahoma 6° counsel and compensated by Petitioner as Trustee of the Trust for services rendered during the Account ‘0 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. Engelmgn Amwntang. 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. 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 ofthe Account Period included only $6,5 13.83 QSmEESSBBESSEEESSZE 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 N $2,430,000.00, which is reflected in Schedule C of the First Account. The costs of sale are more particularly ' set forthon Schedule D 'ofthe First Account. ORDER SE’I'I‘LING FIRST ACCOUNT CASE NO. IGPROOOZZI AND REPORT OF TRUSTEE , ' c. The Decedent’s gross estate for us. Estate Taxes was $1 1,1 18,549.00, resulting in an estate tax liability of $1,337,602.00. The gross estate for estate tax purposes difl‘ers 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 ibr accounting \DODQOUIAWNv—n purposes. The following assets were included on the Decedent’s U.S. Estate Tax Return, but not included in 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 45368 $ 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 sensessseasaaseszs Frederick Preperty, respectively. The rent checks receivedbefore date of death, but not deposited until after 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 y units consist of five (5) one-bedroom apartments and one (1) studio apartment. All six (6) of the units atthe Ashbury Propertywere 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 commenly known as 543-547 Frederick Street, San Francisco, N 06 California (“Frederick Property”) is a fourteen (14) unit rental property which the Trustee has managed _ 5 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 (l 4) 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 \OOOQONUI-R.UJN—I her occupancy. The Frederick Property is subject to San Francisco rent control ordinances. f. The real property commonly known as 1733-1737 Waller Street, San Francisco. California (“Waller Preperty”) 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, Fortune, California (“Stewart Property”) is a single family home which Petitioner has managed during 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 knowu 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 Rolmerville gflmfifififih’gsafia‘aifififla property. Petitioner alleged 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 ofthe fair market rental value ofthe 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. i. At the time ofher death, Decedent owned approximately 16] surface acres of land in N Payne County, Oklahoma, which includes a house and land leased by the Decedent to a farmer for modest rent. Additionally, the Decedent owned approximately 40 acres of oil and mineral rights, some of which is located under the 16] surface acres. From April 25, 2016, through May 2, 2016, Petitioner traveled to 6 ORDER SETTLING FIRST ACCOUNT CASE NO. 16PR000221 AND REPORT OF TRUSTEE Oklahoma to meet with local legal counsel, Mark Holmes, Esq. of Holmes, Holmes & Neisent, with regard to the surface, and oil and mineral interests, to meet the farming tenant, and to personally view the status and condition of the Oklahoma property interests and attend to repairs as need. The Decedent also owned oil and mineral interests in her individual name, together with a partial interest in oil and mineral interests still \OMQGUI-BWNp—n remaining in the Decedent’s mother’s name (i.e., Petitioner’s grandmother, Eileen Stockton, who died on February 9, 2000). Petitioner engaged Mr. Holmes to complete probates of the Decedent’s and Eileen Stockton’ s interests 1n order to collect those interests into the Trust. j. Petitioner lives 1n San Francisco and did not own amotor vehicle at the time of the Decedent’s death. Before the Decedent’s death, Petitioner used the Decedent’s 2005 Ford Truck (the “Truck”)