Trust has a special meaning to Kathy C. Gainey, Richmond County Clerk of Court.

Before taking the oath of office as the county’s clerk of court, Gainey was a deputy clerk in charge of the Estate Division and Special Proceedings.

During 2008, the Clerk of Superior Court office wrote monthly checks totaling $747,790.36 to the Richmond County Finance Office for fees, fines and forfeitures collected by the office for the Richmond County Sheriff’s Office and N.C. Highway Patrol.

That was money paid to the county.

Much more money is being safeguarded for others within the duties of the clerk’s office.

The Office of the N.C. State Auditor reported that on July 31, 2008, the office was responsible for safeguarding $6,285,962.88 in funds for other people and entities.

“I handle that money as if it was my own,” Gainey said. “And I’m very frugal. Just ask my husband.”

Besides investing it for maximum returns, Gainey cares deeply for those she serves. “I take the guardianship to heart,” she said.

And, it is not just for the living. With respect for the deceased, her office oversees maintenance funds for six cemeteries in Richmond County with current assets of some $90,000.

Audit

Last year’s audit was for four main accounts as of July 31:

n Cash and cash equivalents on hand and in bank accounts totaled $273,141.02. Most of these funds go to the county treasurer’s office. They also include cash bonds for defendants.

n Investments totaled $3,133,887.02.

n Trusts totaled $2,427,165.14.

n Invested judgments totaled $724,910.72.

“The results of our audit disclosed no internal control deficiencies or instances of noncompliance or other matters that are considered reportable under generally accepted government auditing standards,” said Leslie W. Merritt Jr., State Auditor.

There are currently 112 different accounts entrusted to the office which range from $900 to $246,000.

The number of trusts varies because when children reach 18 years of age, they receive the money in the trust. “We receive three or four new accounts each month,” Gainey said.

Investments

If a trust is to be short term, money is held in a savings account. For long-term trusts, money is invested in certificates of deposit.

With today’ economy, Gainey said she receives three quotes from different banks for the greatest yield before investing or renewing such deposits.

“Now investments in CDs are usually six months to a year because of lower yields in anticipation of higher yields later.”

They are “not invested for several years like in the past when economic conditions were better,” she said.

Most of the trust funds are for minors.

But before perpetual care cemeteries, it was necessary for groups of people to set up trust funds to maintain certain cemeteries.

There are six such trusts. A board of trustees oversees each cemetery. The boards submit bills to the clerk’s office for payment of maintenance services.

When services do not exceed annual interest on the accounts, such accounts grow; which is usually the case, she said.

Another fund is for right-of-way funds set aside by the N.C. Department of Transportation when disputes have not been settled. The same applies to other utilities and rights-of-way. Currently there are some 50 cases with $400,000, which has to be invested after 60 days.

And then there are the cases for adults who for one reason or another have been declared incompetent and need the clerk of court’s office protection.

Minors

In most cases where minors are involved in receiving funds and/or property from wills and insurance settlements, Gainey said families usually prefer for her office to administer the accounts.

While she can appoint a guardian — parent or another — to administer the funds, it can be costly.

The guardian must be bonded. A bond will cost one and one quarter times the principal involved to be renewed each year. A lawyer has to be involved in the proceedings, which include a hearing before Gainey. She decides if a guardian is fit for the job.

Any protest of her decision as a probate judge has to be appealed to the Richmond County Civil Superior Court.

A guardian in charge of each such case has to report annually to the clerk’s office how money received is spent for a child, whether the trust is handled by the clerk’s office or the guardian.

The clerk’s office also receives annual audit reports on local charitable trust funds administered by boards of trustees, 90 percent of which are invested by those boards. Gainey said they keep such reports on file.

When it comes to minors, Gainey said interest on accounts is used to support a child. Principal is only used when she decides a need is great.

“Such as a child needing braces not fully covered by the interest,” she said. “Good teeth are important.”

There are times when timber land held in trust must be cut or sold to pay for taxes on such land, she said.

Her passion

“Estates are my passion,” Gainey said. “I have met some of the finest people in the proceedings and some of the most greedy.”

In her public speaking around the county, she said she always stresses the need to make provisions concerning estates and the need for power of attorney for health care and incompetency, a living will, and a general power of attorney for any situation requiring one. “It is so important,” she said.

Gainey said she keeps such papers in her vehicle should she have a wreck and no one was around to make a decision for her care.

Many times she is called upon to make such decisions to appoint guardians when no provisions are made.

While she likes looking after the interests of others, she said she doesn’t like to have to hold an incompetency hearing.

Keeping oath

“No matter what the parties involved may think of my decisions, I swore an oath of office on a Bible to always do what I think is best for the person involved,” Gainey said. “I do so only after much consideration based on my many years of experience and interpretation of my duties.”

The office hears some five to 10 guardianship hearings a month.

Gainey added that original wills should be filed with her office for safety and access when needed. A person can do so without charge, and the will can be available upon request from the person filing it.

Original powers of attorney should be likewise filed with the Richmond County Register of Deeds Office.

Doctors should be given copies of living wills and health care powers of attorney. That helps others from having to make decisions about life support, she said.

The Clerk of Superior Court in North Carolina has numerous judicial functions.

As judge of probate, the Clerk has exclusive original jurisdiction over matters relating to the probate of wills and the administration of estates, including appointing personal representatives, auditing their accounting and removing them from office if necessary.

The Clerk also presides over many other legal matters including adoptions, incompetency proceedings, condemnation of private lands for public use, and foreclosures.

The Clerk is responsible for all clerical and record-keeping functions of the district and superior court. In addition, the Clerk receives and disburses money collected each year from court fees and fines which go into accounts for Richmond County Schools.

For other details on the functions of the Richmond County Clerk of Court, contact clerks at 997-9100.

Contact reporter Tom MacCallum at 997-9111, ext. 15; e-mail tmaccallum@yourdailyjournal.com.