Professional Profile: Meet the Protector of Fiduciaries – Teresa Gorman

I arrived at my profession in a circuitous fashion. I first worked in various clerical positions. After realizing that a “legal” secretary was paid a higher salaries than a “regular” secretary, I applied for a legal secretary position for a Trust & Estate attorney. I put a Band-Aid on my finger (as I could not type 90 wpm), interviewed and got the position. My legal career began!

After several years on the job, I applied for law school. I did not have a high school diploma (I dropped out after 10th grade), let alone an undergraduate degree. I began night law school with the understanding that since I did not have my undergraduate degree, I would have to take the first-year law school exam otherwise known as the “baby bar.”

After my first semester of law school, I became pregnant with our son, Logan, and soon thereafter with our daughter, Bailey (they are 14 months apart). I took the maximum leave of absence and returned to law school four years later to complete my second semester (Contracts II, Torts II).

At the time, I was working as a legal assistant for my mentor, Nancy Boxley Tepper. Nancy had an impeccable pedigree – magna cum laude from Radcliffe College and a law degree from Harvard Law School where she was the editor of the Harvard Law Review.  If you take a close look at this photo, you will see there were two women in the Harvard Law Review (this photo hung in our lobby); Nancy Boxley Tepper and Supreme Court Justice, Ruth Bader Ginsburg.

Nancy was my biggest advocate. She was tough, took no excuses, and expected the best of me. As a legal assistant, I was expected to prepare Federal Estate Tax Returns (706) and run a Probate without Nancy having to step foot into court. After several years, Nancy was ready to retire and wanted to pass her law practice onto me. She gave me three attempts to pass the Bar.

I took the Bar Exam, now with three children, Logan, Bailey, and Flynn. I returned home each night of the Bar exam to change diapers and put my children to bed. On my first try, I passed the Bar and succeeded to Nancy’s practice.

If it were not for my husband, none of this would have been possible. He took on the expense and the extra workload around the house, with three young children, so that I could pursue my dream. The ancillary benefit to all this is that our children are closely connected to their father, as he was very active in every aspect of their childhood.

As time went on, the law practice I inherited from Nancy changed, increasingly focusing on litigation. I had a unique boutique practice which included drafting estate plans, trust administration, decedent’s estates, conservatorships, litigation, and serving as court-appointed counsel and guardian ad litem. I am most proud of my legacy, having hired and worked with several of the brightest, young (maybe not so young anymore) attorneys. Many of my prior law clients are my real estate clients.

In 2018, I made the decision to sell my boutique Trust & Estate law practice and join the family business, Fiduciary Real Estate Services (FRES).  At the time, both FRES and my law office were flourishing. I made the decision to focus my efforts to further cultivate the vision of Ruben Martinez (my husband) to provide real estate brokerage services tailored to the unique demands required by Fiduciary clients. I have never looked back.

The FRES company motto is: “Protecting the Fiduciary by Bringing Value to the Estate.”  FRES does this by providing specialized, attorney-guided, real estate brokerage services designed to protect the Receiver from both parties to the action and buyers.

A receiver is not an agent of any party to the action, but instead is a fiduciary who, as an officer and representative of the court, acts for the benefit of all persons interested in the property. Shannon v. Superior Court, 217.Cal.App. 3d 986, 992 (1990).

 A receiver occupies a position generally analogous to that held by an executor in the law of probate or by a trustee in the law of bankruptcy. Shannon v. Superior Court, 217.Cal.App. 3d 986, 993 (1990).

As an Estate Planning, Trust & Probate Law Certified Specialist, I found significant similarities between the duties of Receivers and that of my former client base which largely consisted of California Licensed Professional Fiduciaries (CLPF) practicing in the Trust & Estate realm. In the real estate context, both are Exempt Sellers, both report to Courts of Equity, both file comprehensive accountings, and both have their fees approved by the Court. There are differences as well. In the Probate Division of the Superior Court, it would likely be considered self-dealing to sell real property using an in-house broker.

I discovered that my skill and experience in representing CLPFs in the administration of estates, my role as a litigating attorney and serving as Court-Appointed Counsel was easily transferrable to the Receivership world. Although I am not representing a seller as their attorney, understanding contract provisions, tailoring disclosures and counteroffers, and dealing with tenants allows me to utilize my legal skills in real estate transactions.

I find that many aspects of a Trust & Estate practice is similar to that of a Receivership Estate.  As mentioned, both operate under the supervision of a Judge in a Court of Equity. Fiduciaries in Trust & Estate matters (and their attorneys) have to be well versed in all matters a person may become engaged in during their lifetime (real properties, LLC’s, franchises, divorce, running businesses). CLPFs and their attorneys delve into a large swath of legal complexities often involving disgruntled family members who have been stripped of any authority. Sound familiar?

I have settled into my role at FRES.  Has it really been seven years?  I am privileged to work with my husband, our children, and our incredible staff. I am proud to say that our children took a more traditional approach in their education, having received degrees from NYU Stern (Logan), Stanford (Bailey) and Chapman University (Flynn). FRES is a family business with each person contributing to the success of a listing. We truly serve as a “team” to provide consistent excellent services.

I keep my Trust & Estate specialization by serving a Judge Pro Tem for Orange County Superior Court Probate Divisions, by teaching (I taught CLFP Trust Administration course at UCR), by writing articles, and by giving presentations. I believe I occupy a unique niche being deeply immersed in the world of fiduciary duties and deeply immersed in real estate law and contracts.

During my time at FRES, we have developed counteroffers which contain Civil Code § 1542 Waivers and which strip contractually required disclosures, to ensure the Fiduciary seller is only completing statutorily mandatory disclosures. FRES understands landlord/tenant laws and provides transitional property management. We currently have listings across the State of California, including listings all the way up in Eureka down to listings in San Diego. We have sold single-family residences, gas stations, hotels, industrial, and vacant land. This large geographic area has Ruben and Logan traversing the state. Our in-house transaction coordinator provides detailed insight as to the unique disclosures required for each jurisdiction. We realize that even Receivers, with quasi-immunity, need the protection of accurate, thorough disclosures.

FRES has sold properties for some interesting crossover cases with other legal practices including probate and bankruptcy. Recently, we sold an industrial property where the owner was under a conservatorship, and we represented the Bankruptcy Trustee in the sale of the property. The property appraised just over million and the sale was confirmed by the Bankruptcy Court at $16.7 million.

As the years roll by our family is growing professionally and in size. Logan has achieved his CCIM (Certified Commercial Investment Manager) designation. Bailey recently blessed us with a grandson. Flynn is getting married at the end of the year. Ruben and I intend to do more traveling. It is a treat to get away to our vacation home in Idaho where he rides the tractor and I actually cook. While owning a small business, we are always connected, we hope to spend more time there and build another house on the adjacent property.

This profile about “me” contains a lot of “we’s.” The business has grown and thrived by collective efforts. We are appreciative of those who have given us the opportunity to work together and are optimistic about strengthening professional relationships with others. It has been an honor to be on the Board. I am impressed by the experience and camaraderie of fellow Board members. I hope to grow in relationships, knowledge, and contributions to the Board in the coming year.