by James M. Berklan
A Tennessee judge has granted sole permanent oversight of long-term care icon Forrest Preston’s vast financial holdings to one of his sons, Aubrey Preston.
The centerpiece of the portfolio is the Life Care Centers of America nursing home chain, which comprises more than 200 facilities spread over 27 states, employing more than 30,000.
The gargantuan provider was deemed at risk after company executives raised alarms about Forrest Preston’s declining mental health and what was described as increasingly erratic behavior by his third wife, who had threatened Life Care leaders and was alleged in separate legal action initiated by Aubrey to have bilked the billionaire of tens of millions of dollars.
In a brief hearing in Bradley County Chancery Court Tuesday morning, Chancellor Jerri Bryant found that the 91-year-old Forrest Preston is disabled under state law and requires a conservator. His net worth has been estimated at $1.2 billion.
Attorneys gave brief opening statements, but there was no new evidence or testimony introduced. The judge’s formal, written order will be issued in the coming days.
“We’re grateful that the court looked at the facts of the situation and determined that a conservatorship is the right course of action to protect my father,” said Aubrey Preston in a statement to McKnight’s Long-Term Care News. “This has been a difficult process, but it has always been about protecting Dad and helping him age with grace and dignity. This has also been about ensuring that Life Care and its sister company, Century Park, are protected for the future. We’ve got an outstanding management team, and they’ll have the support they need. Our family is fully committed to caring for Dad and providing stewardship for the businesses in the months and years ahead.”
Life Care Centers President Todd Fletcher also issued an optimistic statement after the hearing’s outcome.
“As Life Care embarks on a new chapter, I’m honored to be part of this historic moment. Forrest Preston hired me in 1990, and for that I will always be grateful,” said Fletcher, one of Preston’s nephews. “On behalf of Life Care, Century Park, and our entire team of associates, we want to thank Aubrey Preston for his leadership and willingness to step in on behalf of his father. The future looks bright, and I look forward to working together with Aubrey to continue serving the mission and legacy that have made Life Care a leader in the industry.”
‘Unable to manage’ but ‘very much alert’
After court-ordered neurology exams, doctors found over the last few months that Forrest has “a moderate to severe cognitive condition that affects his ability to manage his own affairs, property, and healthcare needs” and that decision-making should be entirely transferred, according to a trial brief that Aubrey’s legal team filed last week.
“Forrest is, quite simply, unable to protect himself or manage his health decisions, unable to manage his personal financial decisions, and unable to manage the hundreds of business entities that comprise his business empire and he needs someone to protect him and manage his affairs,” it added.
Forrest Preston was in court and “very much alert and certainly understood the nature of the proceedings,” said his lawyer, William Horton, of Horton, Ballard & Pemberton PLLC. That made for mixed emotions.
“Any person who has, at that age, accomplished remarkable things, on his own, as sole owner, for years and decades and accomplished that much and is, I guess you might say, prideful of what he’s created, it’s hard for them to let go,” Horton told McKnight’s Long-Term Care News. “I would say he had some trepidation about it and reservations about it, but I think he accepts the end result and they’re the best results for the company and all concerned.
“Mr. Preston’s legacy and reputation and accomplishments were reserved with dignity, and the court was very complimentary of Mr. Preston,” Horton added.
Some claims settled
Aubrey Preston was granted temporary conservatorship in December after an emergency appeal prompted by behavior by Forrest’s wife, Kim Phuong Nguyen Preston, that Aubrey and company leaders called erratic, harmful and fraudulent.
After that Nov. 20, 2024, ruling, however, Kim stated in a recent legal filing that she would not object to Aubrey being named conservator if a court deemed it proper.
The Vietnam native, who first came on the scene as a caregiver to Forrest’s now-deceased second wife, said in the same brief she wants to remain Forrest’s wife and caretaker, not conservator.
Attorneys agreed to a confidential settlement over Aubrey’s charges against Kim and her siblings’ alleged misappropriation of millions of dollars of Forest’s assets, Horton said Tuesday.
Aubrey Preston has owned and operated long-term care facilities for decades, though he has not worked directly for LCCA since serving as his father’s director of acquisitions as a young adult.
He described himself as a reluctant participant in the legal action who was compelled to act after hearing disturbing reports from company officers and others.
Among other endeavors, he is the founder and chairman of the Leiper’s Fork Foundation,
where he is described as an entrepreneur, philanthropist and
preservationist. He and his mother, Cora, Forrest’s first wife, were
original land donors to conserve acreage in Leiper’s Fork through The
Land Trust for Tennessee.
Full Article & Source:
BREAKING: ‘New chapter’ begins for Life Care Centers of America as judge gives permanent control to owner’s son
UPDATED: Court shifts emergency control of Life Care Centers of America to owner’s son
Son seeks conservatorship for Life Care’s Forrest Preston
Life Care Centers CEO Faces Conservatorship Bid, Raising Concerns Over Nursing Home Giant’s Future
Emergency Petition Seeks to Expedite Conservatorship for CEO of Nursing Home Giant Life Care Centers
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