It’s a billion-dollar family feud straight out of central casting.
The first great-grandchild of legendary Dallas oil tycoon H.L. Hunt is suing his father and other family members for alleged mismanagement of two trust funds with up to $4 billion in assets.
In a Texas state court filing that often reads like a Hollywood script, Albert G. Hill III claims that his father, Albert G. Hill Jr., and two aunts “were motivated by their avarice. . .so they could ‘get their money sooner rather than later.’”
The complaint calls Tom Hunt, a nephew of H.L. and trustee of the two trusts, “the ’spider’ in a web of conflicting interests” and “the most conflicted man in Dallas.”
Specific claims involve an $800,000 luxury skybox at Texas Stadium, home of the Dallas Cowboys, a $20 million penthouse condo in Vail, Co., allegations of inappropriate transfers of millions in cash, trust assets sold to family members at discounts, and Albert Jr. firing Albert III from the family business and disinheriting him.
The real issue, however, may be that some of H.L.’s progeny simply live too long. What triggered the current suit was a plan to break up the trusts about 20 years early.
The suit, filed Nov. 8, was first reported by The Dallas Morning News.
In 1935, H.L. and his first wife, Lyda, established trusts for each of their six surviving children. Each trust was to last until the death of the initial beneficiary plus 21 years.
The trusts named in the suit were established for H.L.’s first two children, Margaret and Hassie, also named Haroldson Lafayette, like his father.
Hassie , born in 1917, was diagnosed with schizophrenia as a young man, and died in 2005.
Margaret, who married Albert Hill Sr., died in June at age 91. Albert Sr. and Hassie were best friends, according to Margaret’s book about her parents.
H.L., who amassed one of the largest fortunes in history, died in 1974 at age 85.
It’s clear, attorneys for Albert Hill III argue, that H.L. intended “the trusts would remain intact and that they would benefit not just Defendants and their army of lapdogs, but Plaintiff as well.”
One exhibit included with the suit is labeled “Hypothetical Model” of the flow of trust assets following a sale of Hunt Petroleum Corporation, owned jointly by Margaret’s and Hassie’s trusts.
The two-page analysis was distributed to family members at a meeting in Colorado Springs six weeks after Margaret’s death, according to the suit. The document says a sale of Hunt Petroleum could fetch as much as $4 billion, and assumes a sale for $2.5 billion.
After distributions to cousins ($500 million), taxes ($500 million) and payments to Hunt Petroleum executives ($200 million), the remaining $1.3 billion is divided equally into new trusts benefiting Albert Jr. and his sisters, Alinda Wikert and Lyda Hill, according to the document.
Albert Jr.’s share of Margaret’s trust is re-divided into four equal parts among Albert Jr. and his three children, Albert III and two sisters.
Were she still alive, the suit claims, Margaret never would have allowed the breakup of her trust. The suit also points out that the clock is running for Albert Jr., his sisters and other older family members. Waiting another two decades to get their money could be moot.
According to the suit, Tom Hunt is 84, Albert Jr. is 62, Lyda 65, Alinda 59 and Albert III 37.
In the suit, Albert III says that his father “disclaimed” most of his share in Margaret’s trust in 2005, making Albert III and his sisters direct beneficiaries. Albert Jr. has since tried to recant that claim, the suit says.
Albert III, like many Hunt heirs, is active in Dallas affairs. He sits on the boards of Baylor Health Care System Foundation, the John G. Tower Center for Political Studies at Southern Methodist University and St. Marks School of Texas, the most exclusive private school in Dallas.
H.L. had 15 children with three women, in often overlapping households. Margaret and Hassie were from his first family, as were Lamar, Caroline Rose, Nelson Bunker and William Herbert.
Lamar, who died last December, co-founded the American Football League and owned the Kansas City Chiefs of the NFL. Caroline owns and operates some of the top luxury hotels in the world. Nelson and William once tried to corner the world silver market.
Ray Hunt, whose Hunt Oil recently signed a controversial exploration deal in Iraq, is from H.L.’s third family. Ray has kept his family’s holdings separate from his half-siblings.
It’s hard to predict how the suit will play out. All parties certainly can afford the best legal talent.
One thing for sure, when the Hill branch of the Hunt dynasty sits down for Thanksgiving dinner next week, some members will probably be missing.
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#1. Hunt trust fund battle gets personal | Muckety.com - See the news with interactive relationship maps 02.11.2008
[…] November, Albert III sued his father and other family members for alleged mismanagement of two trust funds with up to $4 billion in assets. The trusts were […]
#2. Did H.L. Hunt heirs get full value for Hunt Petroleum? | Muckety.com - See the news 06.23.2008
[…] follows the outline of a “hypothetical” sale distributed at a Hunt family meeting in Colorado Springs last July. The two-page document said Hunt Petroleum could fetch as much as $4 billion and assumed a sale at […]
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