Clinton County Superior Court heard a petition regarding disqualified and qualified beneficiaries of the trust designated to benefit local non-profit organizations by two influential leaders in the Clinton County community.
On Oct. 31, the Clinton County Superior Court heard a petition regarding William “Bill” Beard and R. Jean Beard’s estate fund that was initially considered by the court with filings in December 2021. The hearing for the trust was based on a petition filed by attorney James Moore as a request to determine qualified and disqualified beneficiaries for the allocation of trust funds. The funds were presented as $1,315,016.90 for the money marketing fund and $50,395.39 for the checking account that would be distributed to the beneficiaries. All beneficiaries of the trust were required to be a 501(c)(3) non-profit organization to be eligible to become a beneficiary.
In the trust, if an entity that was designated as a beneficiary ceases to exist, the trust directs the court to remove the entity from the trust and reallocate the share to the rest of the beneficiaries rather than allow the court to substitute a similar organization in its place, according to Moore. Due to the rules outlined by the trust, Moore commented that the court would be unable to finalize the percentages for every beneficiary without designating which organizations were qualified or disqualified, and he filed a petition on Sept. 27 to discuss the organizations that would be assessed for disqualification.
Moore stated that the initial requests for W9s and certified information from beneficiaries were sent out almost two years ago that have since been returned by many organizations, but the lack of response from some organizations led Moore to question whether they qualify as beneficiaries any longer.
– Photo courtesy of Chris McBarnes.
Moore began by highlighting Damou Christian Mission, which recently provided its certified information to qualify as a beneficiary, striking its case for disqualification. The first organization set for disqualification was Prevent Child Abuse. According to Moore, letters were issued to request W9s and certified information on Feb. 22, 2022, April 16, 2022, June 10, 2022, and Oct. 2, 2023, but all of the letters were returned. Due to the return of the letters, Moore stated that the organization should be disqualified as it is assumed to no longer be active, which would allow the court to redistribute its .16% share in the trust to the other organizations.
Rainbow Haven was also sent letters on Feb. 22, 2022, May 26, 2022, June 2, 2022, and Oct. 2, 2023, before Moore was notified of its closure. Moore stated that Rainbow Haven began as a First Presbyterian Church project before becoming an independent entity prior to its closure, which led to Moore’s request to disqualify the organization. The Mental Health Association of Clinton County was also sent letters in February 2022 and October 2023 with no response. The organization was listed as 58 W. Clinton St. in Frankfort, which now belongs to another business, and Moore called for its disqualification.
Moore received a notice that a filing in the Secretary of State’s Office was received for the dissolution of the Clinton County Cancer Association on May 28, 2019, which led to his call for disqualification.
The conversation shifted toward establishing a point of reference for when a dissolved organization
– Photo courtesy of Erilda Coleman
would be disqualified from receipt of its share of the trust due to the filings of Habitat for Humanity of Clinton County, St. Vincent Frankfort Hospital Association and the Hospital Foundation. According to Moore, Habitat for Humanity filed for dissolution on Sept. 27, 2023, due to its plans to join the Habitat for Humanity of Tippecanoe County with its transfer of assets to the organization. Moore stated that the organization requested for the share to be transferred to the Tippecanoe County branch, but he stated that due to its relocation out of the county and its dissolution, the organization should be disqualified. St. Vincent and the Hospital Foundation filed for voluntary dissolution on March 24, 2023, which placed the organizations in the same situation as Habitat for Humanity. Judge Justin Hunter stated that the organizations would be considered for disqualification due to their dissolutions with consideration of the dates that they filed for dissolution due to the nearly two-year process of the allocation.
Conversation was also heard on CORE Community Center’s share. CORE, previously the Clinton County Family YMCA, was designated as the largest beneficiary, receiving 12.4% of the funds. Due to the rebranding of the organization, Moore highlighted how the organization can maintain its status in the trust regardless of the trust’s designation for the share to be distributed to the YMCA. Moore stated that through the articles of amendment for the name change, CORE maintained itself as the same legal entity with the same tax identification number with the Secretary of State’s Office. Moore stated that due to the Beards’ involvement with the YMCA, where Bill Beard served as the president of the board that brought the organization into the county, rather than “CORE” and their involvement with their faith, which was the forefront of the YMCA mission and he stated was essential for the Beards to still want the organization to receive the funds, he initially held concerns for maintaining its status as a beneficiary. Moore stated that since the organization maintained that it would be “governed by core values of Christianity,” alongside its legal similarity to the YMCA, an argument for CORE to remain as a beneficiary was likely to succeed.
– Photo courtesy of CORE Community Center
Moore also highlighted a mistake that needed to be corrected for the Community Foundation where scholarship amounts were mistyped in one section of the trust. The correction will allow more students to qualify from Clinton Prairie, Clinton Central, Frankfort, Rossville and Kokomo, which is the school Jean Beard attended. Moore also highlighted Camp Cullom, which is expected to receive .6% as a share before the redistribution of the disqualified organizations.
Moore stated that priced realty and interest in southern Indiana subsidized housing have been sold to be added to the trust. The oil and gas interests the couple held are expected to be sold within the next few months, and Moore stated that he is awaiting prices to increase again for the sale to net the highest benefit for the beneficiaries. Many of the Beards’ shares in The Farmers Bank were also sold, but Moore stated that 15 shares remain to be sold with the same goal of selling the shares at the highest price to increase the trust.
Moore commented that after the initial larger distribution, “given the widespread nature of the Beards’ assets, it’s foreseeable that income” will continue to be gained in the trust into the future. However, Moore stated that the amount garnered after the initial distribution would likely be minimal.
Moore also proposed a limit or minimum amount for each share of the additional income after the initial distribution, which would disqualify the organizations from receiving the additional funds if they would receive under a set amount. Moore stated that the limit would ensure the most “equitable and efficient use” of the funds as organizations would not receive checks for small follar amounts after the first distribution.
Judge Hunter stated that the court will work to identify the disqualified organizations and present Moore with the anticipated ruling within the next week. Hunter stated that Moore would be responsible for filing the final steps of the process within a week after the presentation, and the public would be notified of the decisions and percentage numbers within the next two to three weeks.
Bill Beard passed away on Dec. 18, 2016, at the age of 90 as a lifelong Clinton County resident. Bill Beard served as an Aviation Electronic Technician’s Mate 2nd Class from 1945 to 1946 in the Navy during the second World War. Bill Beard was the co-founder and co-owner of Beard Industries alongside his wife, Jean Beard, from 1966 to 2003. He served for nine years as a Clinton County Commissioner, was a member of the Frankfort First Christian Church, Beard Masonic Lodge 641, Eastern Star, Frankfort Country Club, Clinton County Chamber of Commerce and Kiwanis. Bill Beard served as the president of the Clinton County YMCA board as well as the Frankfort Kiwanis, and he served on the board of directors for the On Stage Foundation since it began in 1968. Bill Beard earned numerous awards for his work in the community alongside Jean Beard, who passed away
on Dec. 17, 2021, at the age of 92. Jean and Bill Beard consistently donated to the Boys and Girls Club, YMCA, the church and many more organizations, and the couple would often make the largest annual contribution to the Boy Scouts of America in the district. Through the trust, the couple intended to continue their philanthropy for many years to come in Frankfort and Clinton County.
Members from CORE Community Center and Camp Cullom attended the hearing on Oct. 31 to provide testimony if necessary and hear updates.
Stay tuned to Clinton County Daily News and Boone County Daily News for more information on the final percentages every organization will receive from the trust.