[WSBAPT] Approval of Co-Trustee's fee

[Josh Grant]

I have a client who is a co-trustee of several  irrevocable intervivos trusts. Each grandchild (7) of the settlor’s is the sole beneficiary of separate trusts.  One of the beneficiaries is objecting to one of the trustee’s fee.  The basis of the objection seems to be that the co-trustee approved his own fee.  It has been proposed that in the future  the trustee who is being paid a fee (one co-trustee is an attorney and the other is a family member who doesn’t usually take any fee) not approve it but that the other co-trustee approve of the other co-trustee’s fee.  My thought is that this may seem on the surface a good idea, however, trustees are empowered in the trust to determine these fees, and both are responsible and both should do the approving of a fee, notwithstanding the apparent  or actual conflict of interest.  If a beneficiary wants to take it to court they can.  This trust sets the fee at “equal to one and one-half times the compensation which would have been charged by ________ Bank, (or its successor or a comparable corporate fiduciary) had it served as trustee...”  The fee in question is way under that amount.

Thanks

Josh

Joshua F. Grant, PS
Attorney at Law
P. O. Box 619
Wilbur, WA 99185
tel 509 647 5578
fax 509 647 2734
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