Chapter 19 - Harbor on trial
Gloria’s petition against Harbor was not frivolous in every respect.
Her attorney argued:
Harbor approved a $3,100 monthly distribution with insufficient transaction monitoring.
If spending was misuse, why did trustee not catch it sooner?
Fair question.
Harbor’s response:
The distribution was based on court-approved household budget.
Funds entered a separate guardianship account.
Annual accounting duty belonged to guardian and family court.
Harbor had no debit-card visibility.
When support increase requested, Harbor demanded records rather than approve.
Reasonable.
Then caregiver compensation.
Harbor never approved.
Good.
Then Gloria argued Harbor encouraged household reimbursement.
An email from Evan:
Support distribution may be used for Lizzy’s reasonable share of household costs.
True.
Gloria interpreted broadly.
Could Harbor have defined “reasonable share” more?
Maybe.
Independent fiduciary expert testified:
Best practice would have required clearer categories and periodic receipts given guardianship vulnerability.
Harbor’s process was acceptable but could improve.
No breach causing major loss.
Then court.
Petition to remove Harbor denied.
Why?
No evidence disloyalty.
No reckless management of principal.
Distribution structure not unreasonable.
But judge required Harbor to implement:
Annual transaction-level review for any future guardian receiving recurring distributions.
No cash reimbursement above set threshold without documentation.
Direct payment where practical.
Governance improvement.
Then who pays Harbor’s legal fees?
Trust instrument allowed reasonable defense costs from trust.
Gloria objected.
Court allowed most but required Harbor absorb a small portion tied to internal policy review.
Balanced.
Then Gloria called that:
“Lizzy paying the bank to defend itself.”
Partly true.
But fiduciary administration has costs.
Then family money.
The $18,750 repayment was transferred into Lizzy’s protected trust, not to me.
No windfall.
Then Social Security review.
Final determination:
Gloria misused approximately $4,320 of survivor benefits attributable to clearly personal adult expenses.
Because funds co-mingled with trust support, allocation complex.
She repaid SSA.
No criminal referral.
Walt was not representative payee, so SSA action against him not same.
Then Franklin Bank.
No finding of bank wrongdoing.
No settlement.
No free money.
Then Sonia billed accounting costs:
$23,000.
Court allocated:
60% to Gloria/Walt jointly due deficient records.
40% guardianship estate/trust administration.
I did not pay personally.
Again:
Specific consequence.
Then Lizzy.
She asked me:
“Is Grandma poor now?”
“No.”
“Did I make her pay money?”
“No.”
“Why did Grandpa say court takes money?”
I stared.
Someone had spoken near her during therapeutic visit?
Walt denied saying that.
Later therapist note showed Lizzy overheard him telling counselor:
“The court made us repay.”
Not directed at her.
Still.
I told Lizzy:
“Adults used some money the wrong way, and adults fixed it.”
“Was it my money?”
“Yes.”
“Am I rich?”
Oh, God.
“You have money protected for you because your parents died.”
She looked horrified.
“I don’t want dead money.”
May you like
I pulled her into my arms.
Neither did I.
