IBJNews

Judge removes Bren Simon as trustee over late husband's estate

Back to TopCommentsE-mailPrintBookmark and Share

A Hamilton County judge has ordered Bren Simon removed as personal representative and interim trustee over her late husband's estate, replacing her with a retired justice of the Indiana Supreme Court.

The ruling by Superior Court Judge William J. Hughes represents a turning point in an ugly family squabble over Melvin Simon's more than $2 billion fortune. It's a big victory for Deborah Simon, one of Melvin's children from a previous marriage, who had argued Bren is unfit to serve as trustee.

"The record herein is replete with examples of conduct by Bren Simon justifying her removal in both capacities," Hughes wrote in the order entered Dec. 15.

The judge cited Bren's decision to distribute $13 million from the estate to herself without notifying other trust beneficiaries, a move she later tried to recast as a loan, albeit one without an interest rate or repayment schedule. Among Bren's other questionable decisions: Paying her attorneys more than $3 million from the estate without the court's approval, and moving to convert more than $600 million ownership units in Simon Property Group Inc. without appropriate professional advice, the judge wrote.

Hughes appointed former Indiana Supreme Court Justice Theodore R. Boehm, who retired earlier this year, to replace Bren as both trustee and Melvin's personal representative. The judge chose an outsider because "successor personal representatives" noted in Melvin's will, including his son and Simon Property Group CEO David Simon, are either named parties or witnesses in the pending will contest.

Hughes ordered Bren to immediately deliver all records pertaining to the estate to Boehm, and to provide a full accounting of her activities as interim trustee within 60 days.

Deborah's legal team argued in July that Bren is unfit to serve as trustee, saying that she is hostile toward her stepchildren and already had bungled several important decisions.

They played snippets of videotaped testimony from Bren, taken in March, in which she describes Deborah and her siblings Cynthia Simon-Skjodt and David Simon, the chairman and CEO of Indianapolis-based Simon Property Group, as spoiled, vicious and hurtful. In e-mails entered into the court record, Bren calls Deborah "bin Laden" and describes the actions of David as "terrorism." (Snippets of Simon's video deposition, including comments she made about her strained relationship with her stepchildren, appear in the videos below.)




Attorneys for Bren argued she served capably as executor and trustee of the estate of her late husband, pointing to a series of moves she has signed off on, including the transfer of her husband's stake in the Indiana Pacers and moves to appraise the value of a vast array of holdings.

Bren's attorneys are trying remove Hughes from the case, after taking issue in November with the judge’s choice of personal counsel to represent him in front of a state judicial commission. Hughes hired two attorneys with Bingham McHale after he was charged with driving while intoxicated in North Carolina in October. A different attorney at the same firm represents Simon Property Group.

Hughes replaced the Bingham McHale attorneys on Nov. 22, three days after Bren’s attorneys objected and asked for a stay in the case. Hughes said he has “no bias” for any party or attorney in the case, but Bren’s attorneys were not convinced. The judge on Wednesday certified the appeal, fast-tracking a review by another judge.

Deborah claims Bren coerced Melvin to make changes to his estate plan in February 2009, seven months before he died at age 82. Deborah contends Melvin was suffering from dementia and didn’t understand what he was doing when he signed off on the plan, which boosted the share of his fortune going directly to Bren from one-third to one-half.

The changes also wiped out a portion that was to go to Deborah and her two siblings from Simon’s first marriage—Cynthia Simon-Skjodt and David Simon.

Bren has claimed in court filings that the changes to the will reflected Melvin’s desire to compensate her for a drop in the company’s stock price and a reduction in the cash dividend.

ADVERTISEMENT

  • Bren's Kindness
    I was fortunate to meet Brenda Simon in the 80's in South Florida. She was always very kind and generous to me. She had a way of making the people around her feel very special. I'm sure that is one of the reasons Mel loved her so much. It saddens me to think this is happening to her at this stage in life. My thoughts and prayers go out to her. I ask God to free her from anxiety and give her the peace she so desires. Sincerely, Paula Kulbicki
  • Individual Trustee - Response to Joe
    Joe -

    Justice Boehm has likely forgotten more about trusts and wills than most corporate trustees will ever know.
  • Poor BREN
    That poor old lady WOW
  • because $ isnt enough
    of course that enough money, but to these people its not having enough, its having all of it.

    and keep on the story IBJ - the way the biggies in this town work and live s a fair representation of the reasons indy is hurting.
  • Why all the fuss?
    Greed. G R E E D . Greed.
  • Individual Trustee
    Appointing an individual as Trustee in an estate this large is egregious and terrible ruling. Corporate Trustees, not only have decades of estate, trust and investment experience, but also have the deep pockets to potentially reimburse the estate for any errors or negligence. With all due respect to the retired Chief Justice, there is no way he has the experience to act as a fiduciary or make investment decisions and he certainly does not have the financial resources to be held accountable for any mistakes he could make, negligently or otherwise. Both sides are losers on this one.
    • I look forward to the IBJ reprorting
      The Simon fued is the best soap opera in Indy
    • I am up for alien baby pics
      This is very relevant to the local business community, but Alien babies, WOW.
    • worthwhile
      I appreciated this report. The Simons are involved in many areas of the community, and the activity surrounding this case will have a reaching impact, regardless of the outcome.
    • um. . . taters . . .
      This is kind of a big deal and has nothing to do with Smashing Taters. Its a multibillion dollar estate in the hands of the Indiana Judiciary. I like to see how they handle the issue. IBJ - thanks for the update.
    • I am tired of it all, too
      There is enough money for all to live in complete disgusting manners. Why all the fuss?
      • seriously...
        Why is this news? Your infatuation with the lives of the ridiculously wealthy is nauseating.

        What's next for the IBJ? Who's had bad plastic surgery? A list of local divorces? Photos of alien babies?

      Post a comment to this story

      COMMENTS POLICY
      We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
       
      You are legally responsible for what you post and your anonymity is not guaranteed.
       
      Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
       
      No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
       
      We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
       

      Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

      Sponsored by
      ADVERTISEMENT

      facebook - twitter on Facebook & Twitter

      Follow on TwitterFollow IBJ on Facebook:
      Follow on TwitterFollow IBJ's Tweets on these topics:
       
      Subscribe to IBJ
      1. If I were a developer I would be looking at the Fountain Square and Fletcher Place neighborhoods instead of Broad Ripple. I would avoid the dysfunctional BRVA with all of their headaches. It's like deciding between a Blackberry or an iPhone 5s smartphone. BR is greatly in need of updates. It has become stale and outdated. Whereas Fountain Square, Fletcher Place and Mass Ave have become the "new" Broad Ripples. Every time I see people on the strip in BR on the weekend I want to ask them, "How is it you are not familiar with Fountain Square or Mass Ave? You have choices and you choose BR?" Long vacant storefronts like the old Scholar's Inn Bake House and ZA, both on prominent corners, hurt the village's image. Many business on the strip could use updated facades. Cigarette butt covered sidewalks and graffiti covered walls don't help either. The whole strip just looks like it needs to be power washed. I know there is more to the BRV than the 700-1100 blocks of Broad Ripple Ave, but that is what people see when they think of BR. It will always be a nice place live, but is quickly becoming a not-so-nice place to visit.

      2. I sure hope so and would gladly join a law suit against them. They flat out rob people and their little punk scam artist telephone losers actually enjoy it. I would love to run into one of them some day!!

      3. Biggest scam ever!! Took 307 out of my bank ac count. Never received a single call! They prey on new small business and flat out rob them! Do not sign up with these thieves. I filed a complaint with the ftc. I suggest doing the same ic they robbed you too.

      4. Woohoo! We're #200!!! Absolutely disgusting. Bring on the congestion. Indianapolis NEEDS it.

      5. So Westfield invested about $30M in developing Grand Park and attendance to date is good enough that local hotel can't meet the demand. Carmel invested $180M in the Palladium - which generates zero hotel demand for its casino acts. Which Mayor made the better decision?

      ADVERTISEMENT