Frahm v. Rokus
Defendants, Deborah D. Frahm and Sherryl L. Lilley, appeal from the July 31, 2012 probate court order which distributed assets of the Frahm Family Trust (the trust). The probate court directed the trustees to allocate a $3.2 million payment for promissory notes to plaintiff, Tari F. Rokus. In 1993, an iteration of the family business, Reid Plastics, Inc., issued promissory notes to the settlors, Carl and Shirley Frahm (the Frahms), in exchange for a loan. In 1997, the Frahms received $3.2 million in payment to extinguish the promissory notes. Defendants contend the probate court erred by allocating the $3.2 million to plaintiff rather than having the assets split three ways under the trust’s residuary clause. Plaintiff contends the probate court order was proper because the Frahms intended she receive the proceeds from the Reid Plastics, Inc. sale including the promissory note payment. We affirm the July 31, 2012 order.
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