Indiana Supreme Court reverses earlier ruling on Inlow estate
Erika D. Smith
November 18, 2009
IndyStar.com
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The Indiana Supreme Court struck a compromise of sorts Wednesday in a case involving the estate of a Conseco Inc. executive who was killed 12 years ago by a helicopter blade.
The state’s top court reversed an earlier ruling, allowing the widow of Lawrence W. Inlow, Anita Inlow, to keep part of the proceeds from a wrongful death settlement. Inlow’s four children from a previous marriage had sought that money, which was used for Inlow’s $284,034 funeral.
The decision is the latest development in a long legal war over Lawrence W. Inlow’s his fortune — at one point worth as much as $180 million and now, after lawsuits and Carmel-based insurer Conseco’s bankruptcy, valued at a fraction of that.
At issue in this latest battle was whether Inlow’s heirs had the right to use money from a $885,000 wrongful-death settlement to pay for his funeral.
Anita Inlow, in 1997, paid for the funeral, and was reimbursed from the estate, which is controlled by Inlow’s four heirs.
Then in 2005, estate representative Fifth Third Bank sought a reimbursement for the same expenses. The money would be taken from the settlement controlled by Anita Inlow and put back into the estate controlled by Inlow’s adult children.
The heirs, Jason, Heather, Jeremy and Sarah, supported the bank’s action.
Anita Inlow objected, citing what she said was the court’s erroneous interpretation of a state law covering the use of wrongful-death settlements.
She lost two previous cases, and that set up the appeal that went to the Supreme Court in April.
Today, the court ruled that a portion of the settlement should be applied toward those expenses, since Indiana’s Wrongful Death Act includes language that specifically refers to medical, hospital, funeral and burial expenses as a component of total damages in such cases.
The exact amount will be determined at a later date.
Heirs of Conseco executive continue court battle over funeral cost
Erika Smith
April 10, 2009
Indy.com
http://www.indy.com/posts/heirs-of-conseco-executive-continue-court-battle-over-funeral-cost
State Supreme Court will decide which side covers $284,034 bill
For 12 years, Lawrence W. Inlow, a Conseco executive who was killed by a helicopter blade, has been resting in peace in a custom-built mausoleum at a Far-Northside cemetery.
For just as long, his widow and heirs have been waging wars over his fortune — at one point worth as much as $180 million and now, after lawsuits and Conseco’s bankruptcy, valued at a fraction of that.
The $284,034 bill for Inlow’s funeral and private mausoleum is about all that’s left to fight about.
On Thursday, they did.
A lawyer representing Inlow’s widow, Anita Inlow, and another representing his four children from a previous marriage made their cases before the state Supreme Court about why the other side should pay.
The hearing followed rulings in two lower courts, both of which were against Anita Inlow.
At issue is whether the four children from Lawrence Inlow’s first marriage — all of whom were adults when he died in 1997 — have the right to use money from a wrongful-death settlement to pay for his funeral.
Anita Inlow got sole control of the $885,000 from the wrongful-death case against Carmel-based insurer Conseco. She is the guardian of the Inlows’ young son, Jesse, and under Indiana law, such settlements go only to dependents and widows.
Children from Inlow’s previous marriage, however, were left a portion of their father’s estate.
At the time of Inlow’s death, his widow arranged and paid for the funeral and $250,000 mausoleum at Our Lady of Peace Cemetery. Both sides agreed $284,034 was a reasonable amount, said Robert M. Hamlett, who represents the adult children.
Private mausoleums typically cost hundreds of thousands of dollars, said Ted Mau, president of the Washington Park Cemetery Association.
In 1999, Anita Inlow got back the money she spent on the funeral via a reimbursement from the estate.
In 2005, estate representative Fifth Third Bank sought a reimbursement for the same expenses. This time, the money would be taken from the settlement controlled by Anita Inlow and put back into the estate controlled by Inlow’s adult children.
The heirs, Jason, Heather, Jeremy and Sarah, supported the bank’s action.
Anita Inlow objected, citing what she said was the court’s erroneous interpretation of a state law covering the use of wrongful-death settlements.
That issue is now before the state Supreme Court. Hamlett said he didn’t know when the panel will rule.
If the court allows the $284,034 to be moved from the wrongful-death settlement to the estate, Inlow’s adult children would split the money.
Anita Inlow would get nothing.
Her lawyer, Jack Hittle, called the situation unfair.
He cited a 2004 arrangement between the widow and Inlow’s adult children in which Anita Inlow agreed to give up her 50 percent stake and her son’s 10 percent stake in the estate in exchange for an unspecified lump sum. Paying for the funeral out of her wrongful-death settlement wasn’t part of the deal.
The four heirs, under that deal, would get the rest of the estate.
Right now, “the rest” is about $1 million, Hamlett said. But winning this case would push the value to $1.28 million.
This is the heirs’ last legal hang-up, save outstanding attorneys fees.
A resolution would mean an end to more than a decade of lawsuits and family feuds.
There have been squabbles over taxes, the wrongful burial of an in-law, and millions of dollars in stock options. The lengthy list of companies that have been sued includes the accounting firm that handled taxes for Inlow’s estate, his previous employer and the company that made the helicopter that killed him.
All of the fighting stems from the fact that Inlow, 46, died without a will.
He was executive vice president and general counsel for Conseco and earned $12.8 million the year before his death.
Most of Inlow’s wealth, $100 million of it, was tied up in Conseco stock. The insurer went bankrupt in 2002, and any stock held then became worthless. The Inlows still managed to draw millions from the estate, but court records don’t disclose the scope of their wealth.
Now the fight has come down to a mausoleum and a funeral worth $284,034.
Estate of Denial® provides news, analysis and commentary on abusive practices occurring in probate courts and via probate instruments (wills, trusts, guardianships, powers of attorney). We provide original perspective to educate the public regarding this growing threat to both individual freedoms and property rights.
