Legal Fees Not Allowed to Defend Legal Fees, and Other Fees Reduced to 15% of Trusts

Objections filed by the individual beneficiary of two charitable remainder unitrusts to the administration and investments of the trusts, and the legal fees paid by the trusts, were overruled after a hearing on the objections, and so the trustee is now entitled to reasonable attorney fees for defending the administration and investments of the trusts, but not attorney fees for defending the legal fees incurred. The court was satisfied that the attorneys for the trustee separated their time defending the trustee from the time defending the legal fees, but reduced the fees from 25% of the value of the trusts to 15% of the value of the trusts. Chadwick Trusts Nos. 6 and 7, 2 Fid.Rep.4th 4 (Montgomery O.C. 2022).

[For other cases denying legal fees of a fiduciary to defend legal fees, see “Non-Reimbursable Legal Fees of Fiduciaries.”]

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