Pay cut sought for Hillblom estate's executor
The Chairman of the Board of Trustees for the Hillblom Charitable Trust has filed a motion in the court seeking reduction in the compensation for the executor starting this month.
Peter J. Donnici has asked the Superior Court to reduce the monthly compensation of Saipan Bank, from $150,000 to $50,000 beginning June.
In an order last April, the court has authorized the filing of this type of motion. It gave permission to any party to lodge in a motion after April 30 this year seeking for the modification of the present monthly compensation of the executor.
According to the motion filed by Donnici, the court has resolved a big portion of the Hillblom’s estate which reduced the work of the executor.
It cited that the Hillblom personal representatives have been fully paid as of last month which accounted for at least $4.8 million. The amount exceeds 1.35 percent of the gross value of the estate. It also did not include the reimbursement expenses made by the personal representatives nor the payment to accountants, appraisers, attorneys and other individuals.
Moreover, the remaining tasks would only require less effort from executor, the motion said.
The management of the estate cash assets will be primarily handled by a U.S. Trust Company based in Los Angeles. For its non-cash assets, the beneficiaries came out with a directive last January ordering those assets to be delivered to estate creditors in settlement of their claims. This has greatly reduced the work of the executor in connection with the non-cash assets.
Likewise, they also directed the executor to limit its involvement in the level of preserving those assets.
In addition, the remaining estate is currently being managed by a special administrator.
The trust believes that by reducing the executor’s compensation means that the bank will neither make a profit or incur lost. Certain legal resolutions have allegedly been dragged on by the executor.
“Eliminating future net profit may actually expedite closure of the estate by eliminating the bank’s present incentive to prolong administration,” it said.
