The Hillblom Charitable Trust is asking the Superior Court to approve its recommendation to reduce the monthly compensation for the Bank of Saipan and discharge its function as the Hillblom Estate Executor, saying the bank has now “substantially less cash to manage.”
“It is appropriate to reduce the bank’s compensation to reflect its reduced workload and risk,” stated the motion filed by lawyer Paul Lawlor on behalf of Peter Donnicci, chairman of the Board of Trustees of the Charitable Trust.
The Superior Court last week approved the distribution of $200 million of the estate cash among four of Hillblom’s children and the Charitable Trust. The children will inherit $23 million each, while the Trust will get $108 million from the estate cash.
The estate in question was owned by Larry Hillblom, co-founder of DHL Worldwide Express, who died in a plane crash in May 1995.
At least eight children allegedly fathered by Hillblom during his affairs with teenage girls in the Philippines, Palau, and Vietnam originally filed for claims on the estate, but genetic tests reduced the number of claimants to four.
The court’s approval of the distribution plan has moved the Hillblom case closer to final resolution of claims.
The $200 million approved for distribution was part of the $295 million which the Bank of Saipan has been tasked to manage.
An additional $25 million of the estate cash will soon be paid out to the Donnicci Claimant Group and the Saudi Claimant Group.
The Bank of Saipan, seeking to be relieved of responsibilities over the estate, has recommended that the remaining assets be distributed and liquidated by Oct. 28.
By Nov. 1, the Bank of Saipan is expected to complete its distribution task and “its remaining work will be limited in scope,” the Trust said.
According to court documents, the Bank of Saipan has been paid at least $4.4 million as of Sept. 30 for serving as estate executor.
Bank of Saipan was originally scheduled to be paid an additional $150,000 for the month of October.
However, noting the executor’s “reduced workload” , the Trust recommended that compensation for the BoS be reduced to $75,000 for November, and $25,000 for December.
The Trust said the recommended payment should be enough considering that “even though the estate was 57 percent owner of the bank, no part of profit on the executor fees was ever paid out to the estate.”
The Trust also seeks to terminate the compensation by Dec. 31 and “upon the entry of order discharging the bank as executor.” (MCM)