Estate of Howard Gilman, Deceased, Bernard D. Bergreen and Natalie Moody, Executors - Page 21

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          decedent died.  Bergreen was not entitled to compensation by the            
          estate under article 10.                                                    
               Article 12 provides that, if the executors sell Gilman Paper           
          Co. while Bergreen is an executor, Bernard D. Bergreen, P.C., is            
          to be compensated for services rendered in connection with that             
          sale.  The estate contends that Bergreen is entitled to be paid             
          by the estate under article 12 because the executors agreed to              
          act as managers of the assets of HG and its subsidiaries to allow           
          the executors to maintain control over the Gilman assets.  The              
          estate also contends that HG and its subsidiaries were created to           
          effect the executors’ sale of the Gilman assets, and that                   
          Bergreen retained complete control over the sale of those assets            
          after their transfer to HG and its subsidiaries.  We disagree.              
               As a result of the transfer of assets from the estate to HG            
          and its subsidiaries, the estate no longer owned the Gilman                 
          assets; HG and its subsidiaries did.  Because the sale occurred             
          after the restructuring, Gilman Paper Co. was sold by HG (not the           
          estate).  Bergreen and Moody rendered services in connection with           
          its sale in their capacity as managers of HG, not as executors of           
          the estate.  Thus, Bergreen was performing services for HG, not             
          the estate.  Bergreen was not entitled to compensation by the               
          estate under article 12.                                                    

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Last modified: May 25, 2011