Chapter 18 - The investment was better than I wanted it to be
North Coast Building Supply performed well after acquisition.
That annoyed me.
First-quarter numbers:
Revenue above projection.
Customer retention strong.
No covenant breach.
Legacy Ventures looked competent.
Diane’s lawyer used that in probate court.
“Harbor denied children a profitable family investment because of emotional conflict.”
Harbor’s expert answered:
“We did not deny all investment. We denied concentration and compensation linkage.”
Then:
“If Emma had invested $286,000, would she currently be up?”
On paper:
Maybe 4% marked appreciation.
Not realized.
“Yes.”
I hated that.
Then expert said:
“One quarter does not prove a ten-year illiquid investment prudent for a minor trust.”
Correct.
Then management fees.
Diane had reduced fees for other family trusts after Harbor pushed.
From 1.5% to 1.1%.
Harbor wanted 1.0%.
Gap small.
Could settle.
Then Mark’s committee-seat rule.
Legacy Management amended criteria.
Minor trust capital would no longer count toward an adult relative’s personal management eligibility.
Why?
Outside counsel said conflict was too obvious.
Diane agreed after financing closed.
There.
The system fixed itself partly.
Then Harbor said:
With that conflict removed, it was willing to invest:
$65,000 from Emma’s subtrust.
$65,000 Lily.
Subject to parents’ nonbinding input.
I still disliked.
But trustee viewed prudent.
Could I block?
Not automatically.
The trust assets were not mine.
I requested independent second review.
Approved.
Result:
Reasonable 15.5% allocation to private assets after considering their other holdings? Need percentages. Let's say $65k each represented ~15% of current diversified trust. Higher but manageable.
I accepted.
Mark supported.
Diane wanted more.
Lost.
So girls did invest a small amount.
That made story more honest.
The family opportunity was not inherently poison because Diane touched it.
Then probate court question shifted:
Should Harbor be removed?
Evidence:
No breach.
No unreasonable fees.
No bad faith.
Petition looked weak.
Judge still took under advisement after final arguments.
Then Diane announced to family:
“Lauren finally admitted Legacy was good.”
I did not answer.
Marian did not answer.
Truth:
I admitted Harbor had authority to make a prudent small investment.
May you like
Different.
Not every misrepresentation deserves correction.
