Estate debt resolution

Following Ellen White’s death, the probate court appointed three appraisers to value her estate. They estimated its worth at $65,721.87^{10“Inventory and Appraisement” document filed with the Napa County Superior Court, dated September 21, 1915. Photocopy of document located in Ellen G. White Estate records dealing with Ellen White’s estate.} against an indebtedness of $87,250.00,” ^{11“First and Final Assessment” document filed with the Napa County Superior Court, undated, though last entry listed is for December 31, 1916. The document was accepted by the court on February 13, 1917. Photocopy of documents located in Ellen G. White Estate files dealing with Ellen White’s estate; see also Arthur L. White, Ellen G. White: The Later Elmshaven Years, 1905-1915 (Hagerstown, MD: Review and Herald®, 1982), 6:457, where in round figures he lists the indebtedness of the estate at $88,000 and its assets as being $66,000; also, according to the minutes of the General Conference Committee, November 17, 1915, A. G. Daniells reported to those in attendance that the liabilities of the Estate were $87,000 against assets of $63,000. The slight discrepancy in totals can be accounted for depending upon which document is looked at. One document in the White Estate’s file lists several minor adjustments found by the court-appointed auditor that needed correcting. According to the information stated in this audited document, one entry in the “First and Final Assessment” document was mistakenly listed twice, another small cash receipt had not been listed, etc. It appears that the General Conference actually paid a total of $89,047.47 for Ellen White’s estate, including notes payable and accrued interest.} leaving an overall deficit balance of $21,528.13. Throughout her lifetime, Ellen White had donated heavily to support the work of the church, sometimes borrowing money on which she paid interest—at least once as high as 7 percent—in order to have funds to donate to church projects. ^{12EGW to J. N. Loughborough, February 19, 1899, Letter 35, 1899; and EGW to Dear Brother Olsen, June 21, 1890, Letter 115, 1890.} Additionally, money was borrowed to pay for preparing and printing the several books published during the last fifteen years of her life, ^{13EGW, Testimonies for the Church, volumes 7 (1902), 8 (1904), and 9 (1909); Education (1903); The Ministry of Healing (1905); The Acts of the Apostles (1911); the revision of The Great Controversy (1911); Counsels to Parents, Teachers, and Students (1913); and Gospel Workers (1915).} not to mention the ongoing preparation of other book manuscripts that were in various stages of readiness at the time of her death. ^{14EGW, Life Sketches (1915); Prophets and Kings (1917); plus book manuscripts on the history of the denomination’s health work, Ellen White’s years in Europe (1885-1887), and her years in Australia (1891-1900).} Ellen White also had lent money to both of her surviving sons. ^{15According to a note written by Arthur L. White in a White Estate Document File dealing with Ellen White’s estate, Edson and W. C. White each owed their mother approximately $10,000 at the time of her death. However, documents filed with the probate court seem to indicate otherwise. Whereas Edson did in fact owe his mother approximately $10,000 at the time of her death, Willie is listed as owing her only $1,500.}UEGW 216.1

In fairness to Ellen White, she died with no idea that her estate was insolvent. According to the financial records maintained by her accountant, her net worth was considerably more than her indebtedness. ^{16According to the financial records maintained by her accountant, at the time of Ellen White’s death her estate was valued at $121,382.90 against an indebtedness of $65,923.70.} The difference between her net value as shown on the accountant’s books and the value of the estate arrived at by the court appraisers was due to the way the two totals were figured. The court appraisers based their appraisal upon what they thought things would sell for in an immediate court-appointed sale, whereas the accountant figured Ellen White’s net worth at the value that the book manuscripts, printing plates, and so on, had originally actually cost to produce. Neither figured the potential future value of the royalty income generated from the sale of Ellen White’s books. A few weeks prior to Ellen White’s death, several of her future trustees met at Elmshaven, and compared her net worth to her obligations. They were satisfied that the estate could cover all her debts. ^{17“Report of Conference Held at Elmshaven, June 22, 1915,” 1.}UEGW 216.2

Because Ellen White’s estate did not have sufficient readily available assets to cover her indebtedness, in accordance with California law the court required that an estate sale be conducted. ^{18C. H. Jones to W. T. Knox, December 30, 1915.} On October 2, 1916, the General Conference paid $87,250.00^{19“In the Superior Court of the State of California, in and for the County of Napa, Order Confirming Sales of Real and Personal Property,” October 2, 1916, 5.} to acquire the entire estate, including Elmshaven. ^{20W. C. White to W. T. Knox, October 2, 1916.} Legally, Ellen White’s estate ceased to exist, though church leaders seem to have viewed the purchase more as a loan to the estate than as an actual purchase of it. ^{21Undated six-page document apparently written in early 1941 by Arthur L. White entitled “A Statement,” 4 (White Estate Document File 821).} Prior to that sale, the court would have received a copy of the terms of the agreement that had been worked out between the executors of the estate and the General Conference^{22W. T. Knox to H. G. Childs, December 22, 1915.} planning to honor some provisions of Ellen White’s will, though not all of them. ^{23A. H. Mason, Ellen White’s accountant, reported in a letter to D. E. Robinson, Ellen White’s grandson-in-law, dated December 1, 1915, that the State of California would not allow anything to be paid to the heirs until all the creditors had been paid in full. Consequently, according to Mason, it was being proposed that the heirs sign off on the amounts they were to receive, at least until after the entire debt had been paid in full.} One provision that was honored was the trust arrangement whereby the five trustees named by Ellen White^{24See “Last Will and Testament of Mrs. Ellen G. White,” dated February 9, 1912, paragraph FIFTH, where she named William C. White, Clarence C. Crisler, Charles H. Jones, Arthur G. Daniells, and Frank M. Wilcox as the original trustees of her estate.} received her general unpublished letter and manuscript file. Eventually, the trustees repaid at 4 percent interest the estate’s entire indebtedness to the General Conference. This was from royalties earned on the sale of Ellen White’s books. ^{25Arthur L. White, “A Statement,” 4.} The repayment arrangement was in harmony with the intent of Ellen White’s original will. ^{26See “Last Will and Testament of Mrs. Ellen G. White,” dated February 9, 1912, paragraph SECOND; also paragraph FOURTH, subdivision (d), point 1.} Honored also was the provision leaving her personal effects to her sons. ^{27See points 1 and 2 in “Propositions for Basis of Agreement in the Settlement of the Estate of Mrs. E. G. White,” copy located in White Estate Document File 832.}UEGW 216.3