8/6/2020 Twelfth Account Current
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Electronically FILED by Superior Court of California, County of Los Angeles 8/6/2020 3:32 PM Sherri R. Carter, Executive Officer/Clerk, By H. Tam, Deputy Clerk 1 GERALDINE A. WYLE (SBN 89735) [FILED CONDITIONALLY UNDER [email protected] SEAL SUBJECT TO MOTION TO 2 JERYLL S. COHEN (SBN 125392) SEAL FILED ON 8/6/20] 3 [email protected] FREEMAN, FREEMAN & SMILEY, LLP 4 1888 Century Park East, Suite 1500 Los Angeles, California 90067 5 Telephone: (310) 255-6100 Facsimile: (310) 255-6200 6 Attorneys for James P. Spears, Conservator of the 7 Estate and Conservator of the Person 8 9 SUPERIOR COURT OF THE STATE OF CALIFORNIA 10 COUNTY OF LOS ANGELES, CENTRAL DISTRICT 11 In re the Conservatorship of the Estate of Case No. BP 108870 LLP 1500 12 Hon. Brenda Penny, Dept. 4 90067 UITE UITE S , 13 BRITNEY JEAN SPEARS [REDACTED] AST E ALIFORNIA 14 Conservatee. C 255-6100 ARK ARK , TWELFTH ACCOUNT CURRENT; P 15 REPORT OF JAMES P. SPEARS, (310) NGELES CONSERVATOR OF THE ESTATE; A ENTURY ENTURY 16 C PETITION FOR ITS SETTLEMENT AND OS L 17 FOR APPROVAL THEREOF 1888 FREEMAN, FREEMAN & SMILEY, FREEMAN, FREEMAN 18 Date: October 7, 2020 [ok to set per Dept. 4] Time: 9:30 a.m. 19 Dept.: 4 20 FILED CONDITIONALLY UNDER SEAL 21 SUBJECT TO MOTION TO SEAL FILED 8/6/20 22 23 24 JAMES P. SPEARS (“Mr. Spears”), as Conservator of the Estate of Britney Jean Spears, 25 Conservatee, (the “Petitioner”) respectfully presents his verified Twelfth Account Current; Report 26 of Conservator of the Estate; Petition for its Settlement and Approval Thereof, as follows: 27 INTRODUCTION 28 The Conservatee has substantial assets held in various trusts which are not subject to this 4575506.1 26244-332 1 [REDACTED] TWELFTH ACCOUNT CURRENT; REPORT OF JAMES P. SPEARS, CONSERVATOR OF THE ESTATE; PETITION FOR ITS SETTLEMENT AND FOR APPROVAL THEREOF 001 1 conservatorship proceeding and not included in this Account and Report. This Twelfth Account 2 covers only the Conservatorship assets. 3 REPORT OF CONSERVATOR RE STATUS 4 1. Appointment of Temporary Co-Conservators of the Estate. On February 1, 2008, 5 Mr. Spears and Andrew M. Wallet (“Mr. Wallet”) were appointed Temporary Co-Conservators of 6 the Estate of Britney Jean Spears, Conservatee (“Ms. Spears” or “Conservatee”). Letters of 7 Temporary Conservatorship of the Estate were issued on the same day. Letters of Temporary 8 Conservatorship were extended several times. 9 2. Appointment of Permanent Co-Conservators of the Estate. On October 28, 2008, 10 the Court appointed Mr. Spears and Mr. Wallet as the permanent Co-Conservators of the Estate of 11 Conservatee. Permanent Letters of Conservatorship were issued on January 9, 2009. LLP 1500 12 3. Amended Letters of Conservatorship of the Estate. On March 5, 2019, the Court 90067 UITE UITE S , 13 accepted the resignation of Mr. Wallet and confirmed Mr. Spears as the sole Conservator of the AST E ALIFORNIA 14 Estate of Ms. Spears and Amended Letters of Conservatorship were issued on that date. C 255-6100 ARK ARK , P 15 4. Appointment of CAC Counsel. On February 1, 2008, the Court appointed Samuel (310) NGELES A ENTURY ENTURY 16 D. Ingham, III (“Mr. Ingham”) as the Court Appointed Counsel (“CAC”) for the Conservatee. As C OS L 17 of the date of the filing of this Petition, Mr. Ingham has not been discharged as the CAC attorney, 1888 FREEMAN, FREEMAN & SMILEY, FREEMAN, FREEMAN 18 and he will be served with a copy of this Petition. 19 5. Report of Account and Estate Administration. Petitioner’s Twelfth Account and 20 Report covers the period of January 1, 2019, through and including December 31, 2019. 21 6. Petitioner is chargeable with and are entitled to credits, as set forth in the Summary 22 of Account and supporting schedules attached as Exhibit 1 and incorporated by this reference. 23 Exhibit 1 is being filed publicly in its redacted version and the unredacted version is filed 24 conditionally under seal. 25 7. 1060 – 1063 Allegations. The account includes a Summary of Account as required 26 by Probate Code Section 1061 for the period covered. Indicated below are the schedules required 27 by Probate Code Sections 1062 and 1063 which are included in the Account for the period 28 covered and those which are not included because they are not applicable. 4575506.1 26244-332 2 [REDACTED] TWELFTH ACCOUNT CURRENT; REPORT OF JAMES P. SPEARS, CONSERVATOR OF THE ESTATE; PETITION FOR ITS SETTLEMENT AND FOR APPROVAL THEREOF 002 1 a. 1061(a)(1) and 1063(a) – Property on Hand at Beginning of Account period – 2 Schedules 1a and 1b. 3 b. 1061(a)(2) – Additional Property Received – not applicable. 4 c. 1061(a)(3) and 1062(a) – Receipts, Schedule A. 5 d. 1061(a)(4) and 1062(c) – Net Cash from Trade or Business, Schedule F. Due 6 to the circumstances unique to this case, the Twelfth Account includes a 7 schedule of Net Cash from Trade or Business category rather than a schedule 8 of Net Income from Trade or Business. See Paragraph 7 below. 9 e. 1061(a)(5) and 1062(d) – Gains on Sales, Schedule B. 10 f. 1061(a)(6) and 1062(b) – Disbursements, Schedule C. 11 g. 1061(a)(7) and 1062(d) – Losses on Sale, Schedule E. LLP 1500 12 h. 1061(a)(8) and 1062(c) – Net Loss from Trade or Business, Schedule F. See 90067 UITE UITE S , 13 Item d above. AST E ALIFORNIA 14 i. 1061(a)(9) and 1062(e) – Distributions to Conservatee – The Conservatee C 255-6100 ARK ARK , P 15 receives a weekly allowance. The expenditures made by the Conservatee are (310) NGELES A ENTURY ENTURY 16 reflected as disbursements in the account and are not reflected on a separate C OS L 17 schedule. 1888 FREEMAN, FREEMAN & SMILEY, FREEMAN, FREEMAN 18 j. 1061(a)(10), 1062(f) and 1063(a) – Property on Hand at End of Accounting 19 Period, Schedules 13a and 13b. 20 k. 1063(b) – Change in the Form of Assets – There were no changes in the form 21 of assets during the period of this account. 22 l. 1063(c) – Allocation between Principal and Income – not applicable. 23 m. 1063(d) – Specifically Devised Property – not applicable. 24 n. 1063(e) – Calculation of Interest – not applicable. 25 o. 1063(f) – Proposed Distribution – not applicable. 26 p. 1063(g) – Schedule of Liabilities, Schedule G. 27 q. 1063(h) – Schedule of Real Property in Foreign Jurisdiction, Schedule I. 28 Petitioner’s good faith estimate of fair market value on August 23, 2010, of 4575506.1 26244-332 3 [REDACTED] TWELFTH ACCOUNT CURRENT; REPORT OF JAMES P. SPEARS, CONSERVATOR OF THE ESTATE; PETITION FOR ITS SETTLEMENT AND FOR APPROVAL THEREOF 003 1 the real property located in Kentwood, Louisiana, is set forth on Schedule I of 2 Exhibit 1. The Conservatee's mother resides on the property and has lived 3 there since before the establishment of the conservatorship. The Conservatee 4 visits and stays in the property from time to time. The Petitioner monitors the 5 maintenance of the property and the expenses incurred for its maintenance. 6 Petitioner does not believe that ancillary proceedings are necessary at this 7 time in order to preserve or protect the property. 8 8. 1064(a)(1) Description of Other Transactions During the Account Period. All 9 sales and purchases are reflected in the accounting schedules. 10 9. 1064(a)(2) Explanation of Unusual Items. 11 a. The Conservatee has substantial assets held in various trusts which LLP 1500 12 are not subject to this Conservatorship proceeding and are not included in this Twelfth Account. 90067 UITE UITE S , 13 The Conservatee is a world-renowned musical artist and performer. The Conservatee’s business AST E ALIFORNIA 14 consists of approximately ten to fifteen entities (wholly owned by the Conservatee) and involves C 255-6100 ARK ARK , P 15 literally many thousands of transactions, including between and among the entities. It would be (310) NGELES A ENTURY ENTURY 16 impractical to fit the business activities and transactions into the form of the traditional C OS L 17 accounting. 1888 FREEMAN, FREEMAN & SMILEY, FREEMAN, FREEMAN 18 b. Due to the complexities and volume of information relating to the 19 Conservatee’s business activities, the Twelfth Account diverges from a traditional probate account 20 as explained in more detail in this paragraph. 21 c. The form of presentation of the Conservator’s accounts are subject to 22 this Court’s “Order Re: Accounting Format” entered August 15, 2012, a true, conformed copy of 23 which is attached and incorporated as Exhibit 2 to this Petition. 24 d. The business activity is reported to the Court in Schedule F of 25 Exhibit 1. Schedule F contains separate independent accountings for each entity. The business 26 activity of the individual entities is not incorporated into the Summary of Account. Similarly, the 27 Summary of Account and Schedule of Property on Hand at the End of Account Period do not 28 4575506.1 26244-332 4 [REDACTED] TWELFTH ACCOUNT CURRENT; REPORT OF JAMES P. SPEARS, CONSERVATOR OF THE ESTATE; PETITION FOR ITS SETTLEMENT AND FOR APPROVAL THEREOF 004 1 reflect the substantial appreciation in any of the business entities resulting from the business 2 activities during the period covered by this Twelfth Account. 3 e. Most of the active entities were formed after the Conservatorship was 4 established and therefore are not reflected in the Inventories. The entities created after the 5 Conservatorship was established are also not reflected in the Schedule of Property on Hand at the 6 End of Account Period for the reasons set forth in this paragraph.