The accounting trail 1,475.97 - 816.00 = 659.97 called debt is the by far simplest example of an accounting entanglement. An accounting entanglement is used as a wedge and takeover tool and as cover. Whoever controls the accounting entanglement controls the people and assets that are entangled. If you can recognize the dynamics in the accounting entanglement 1,475.97 - 816.00 = 659.97 you can recognize the same dynamics in the far more complicated accounting entanglements.
It was created by the accountants and made to appear as if the family [Anthony O'Connell] was responsible. In preparing the 1991 accounting for the Trust Joanne Barnes prepared a figure for the Court that was different from the figure for the IRS when the figures should be the same; $1,475.97 was prepared for the Court and $816.00 was prepared for the IRS, and Edward White reported the difference of 659.97 to the Court, the IRS, and the State.
The accountants reported it:
To the Court in the Seventh Account for the Trust u/w of H. A. O'Connell at Bk480p1768:
"Payable to the Esate of Jean M. O'Connell ... ... ... ... $ 1,475.97"
To the Court in the First Account for the Estate of Jean O'Connell at Bk467p192:
"Int fm Harold O'Connell Trust ......................................... 816.00
Debt fm Harold O’Connell Trust ....................................... 659.97 "
To the IRS and the State in the Estate tax return and it's two amendments:
"4 Interest due Harold O'Connell Trust ......................................... 816.00
5 Debt due from Harold O’Connell Trust ..................................... 659.97"
1992.05.19 (Edward White to Anthony O'Connell, c/o E.A. Prichard, copy to Jean Nader)
"In your letter of May 6 to Jean you asked that I communicate with you with regard to the Harold O'Connell Trust.
I am trying to prepare the estate tax, and as usual in these cases, there are problems trying to understand the flow of debts and income.
I do have a few questions which are put forward simply so that the figures on the Trust's tax returns and accounting will agree with the estate's.
1. The K-1 filed by the Trust for 1991 showed income to your mother of $41,446.00. The Seventh Accounting appears to show a disbursement to her of $40,000.00 plus first half realty taxes paid by the trust for her and thus a disbursal to her of $1794.89. If these two disbursals are added the sum is $41,794.89. This leaves $348.89 which I cannot figure out. It could well be a disbursal of principal and not taxable.
2. The K-1 filed by the Trust showed a payment of $816.00 in interest to the estate. You sent a check in the amount of $1475.97 to the estate. What was the remaining $659.97? Do I have this confused with the tax debt/credit situation which ran from the Third Accounting?
3. On the Seventh Accounting "Income per 7th Account" is shown as $5181.71, but I cannot figure that one out either.
I am of the opinion that the estate owes the trust for the second half real estate taxes from September 15, 1991 through December 31, 1991 in the amount of $1052.35. This is shown on your accounting a disbursed to the heirs. Should this be paid back to the heirs or to the Trust?
I believe that the income received from the savings accounts from September 15 to the date the various banks made their next payment to the Trust (9/30 and 9/21) should be split on a per diem basis, since the Trust terminated on her death. This will be a small amount of course.
Are there any other debts which your Mother owed the Trust?
I realize that Jo Ann Barnes prepared this and if you authorize it I can ask her to help me out.
Please understand that I have no problem with the Accounting, I m just trying to match things up. In the long run, since the beneficiaries are the same, the matter is academic.
Please send the bill for the appraisal whenever you receive it. Jean is filing the Fairfax form for re-assessment in her capacity as a co-owner in order to give us a better basis to get this assessment changed and to meet the county's deadline. It will state that the appraisal you have ordered will follow. I think this will be to all of your benefit in the long run.
Sincerely, Edward J. White"
1993.02.12 (CPA firm of Joanne Barnes and Forest Balderson to Anthony O’Connell, in part)
"The final point in your letter is in regards how to treat the $1,475.97 of cash which was paid to your mother's estate in 1992. This is just a cash transfer to cure a cash deficiency as of the date of death and NOTHING else. On page 4 of the Seventh Account, your mother owed the Trust at the end of the Sixth Account $3,705.74 but you had underdistributed $5,181.71 of cash through her date of death. The $1,475.97 just completes what was due her. The transfer to her estate has no tax effect for either 1991 or 1992."
2000.08.08 (Jesse Wilson's Report to the Judges, in part)
"5. The said trustee has also filed a Twelfth Account in which he reports as an asset $659.97 "due from the Estate of Jean M. OConnell". A copy of that "account" is enclosed herewith as Exhibit 3.
6. The Estate of Jean M. OConnell, deceased, Fiduciary No. 49160, was closed in the Commissioner of Accounts office after approval of a Final Account on May 31, 1994.
7. The said $659.97 was the subject of correspondence between the said trustee and Edward J. White, attorney and co-executor of the estate of Jean M. OConnell, copies of which are attached hereto as Exhibits 4 and 5. In his letter,
Exhibit 5, the trustee explains that the $659.97 is part of a net income payment of $1,475.97 which the trust owed the estate of Jean M. OConnell. In that same letter, the trustee states that "At this point in time, I believe Mr. Balderson and I are of one mind that the estate does not owe the trust and the trust does not owe the estate".
Mr. Balderson was a CPA for the estate. Both of these letters were provided to the Commissioner of Accounts by the trustee in support of his "Twelfth Account".
8. The trustee also provided the Commissioner with a copy of a page from a "Jean M. OConnell estate tax analysis" which shows $659.97 under "Assets" of that estate as "Debt from Harold OConnell Trust". A copy of that page is attached as Exhibits 6.
From a review of this information the Commissioner finds that there is no evidence to support an assertion by the trustee that the $659.97 is an asset of the trust. To the contrary, it appears that either it is not a debt at all, or, from the estate's point of view, it was money owed by the trust to the estate, i.e. an asset of the estate of Jean M. OConnell. That estate has been closed for more that six years.
Accordingly, the foregoing Eleventh Account of Anthony M. OConnell, Trustee has been marked a "Final Account" by the undersigned and is hereby approved as a Final Account in the trust under the will of Harold A. OConnell and is filed herewith.
In the event that the trustee is successful in recovering $659.97 or any other funds which are proper trust assets to be accounted for, such may be reported to the Commissioner of Accounts by an Amended Inventory and, thereafter, accounted for by proper accounts."
If you are put off by the small amount you could ask the accountants why the Lynch payment of $545,820 to the estate on April 21, 1992, does not show in the accounting, but the simple and known accounting trail 1,475.97 - 816.00 = 659.97 is best for illustration. When the accountants don't recognise the accounting trail 1,475.97 - 816.00 = 659.97 or any accounting trail for these numbers it is a flag.