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made all of the 36 monthly mortgage payments, and after the
payments were completed, they decided to title the property
solely in Ms. Scott’s name.
The records of Ms. Scott’s personal checking account from
April 1974 through May 1991, which was her only checking account
during the period, indicate the only checks she wrote for
household expenses before 1979 were modest and sporadic.2
Beginning in 1979, she wrote monthly checks generally exceeding
$100 for electric bills. Beginning in late 1985, she regularly
wrote substantial checks to Ms. Horstmeier which were recorded as
for “bills”.
By the late 1980’s, the business college was experiencing
financial difficulties. From 1988 through 1992, Ms. Horstmeier
periodically lent money to the college. As of March 1992, the
outstanding balance on these loans was $165,325. To fund these
loans, Ms. Horstmeier used proceeds from a home equity credit
line, secured by a second mortgage in the Glenview house. Ms.
Scott was opposed to the use of the home equity loan proceeds for
the business college.
Ms. Horstmeier was diagnosed with pancreatic cancer in March
1992 and was advised by her doctors that her condition was
probably terminal. In May 1992, using the proceeds from her
2 There was one check written to Ms. Horstmeier for
“mortgage” in 1974, before the purchase of the Glenview house.
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Last modified: May 25, 2011