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See Ohio Rev. Code Ann. sec. 2111.18 (Anderson 2002). With their
tentative settlement in hand, the Hickses petitioned the Union
County Probate Court to approve their plan. Baxter sent a
prehearing report to the judge to explain the proposed trusts and
loan. He carefully noted:
The $1 million loan which Mr. Hicks is making
to the Settlement Trust, although available
for Kimberly’s use and benefit during her
lifetime, will not be an asset of her estate
at her death. Since her estate will probably
exceed $600,000, the savings on the $1
million which will not be included will be
approximately $500,000.
The Probate Court reviewed the plan at a hearing in June
1994 and approved both the amount of the settlement and
attorneys’ fees, and the creation of the trusts. Society
National drew up a plan to distribute the funds, which the Court
approved about a month later. The plan allocated $1,415,000 to
Clyde Hicks for loss of services and loss of consortium;
$1,450,000 to Kimberly; and $100,000 to Theresa and Kimberly’s
sister for their comparatively minor injuries. (The remainder
went to attorneys’ fees and expenses.) Society National, in its
capacity as trustee of the Management Trust, issued a promissory
note to Clyde for $1 million. This had been contemplated by the
terms of the Management Trust, under which proceeds from such a
loan “shall become part of the trust property and shall be
administered and distributed on the same terms as the property
originally contributed to the trust.” With the trusts in place,
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