Estate of Lopez

California Court of Appeal Apr 30, 1947 No. Civ. No. 13286Published

Before: Goodell

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Holding. The court held that a trustee's compensation and attorney's fees for the initial year of a trust's administration, which involve extraordinary services, may be apportioned between the trust's income and corpus.

Issues

Whether a trustee's compensation and attorney's fees for the first year of trust administration must be paid solely from income or may be charged against the corpus.
Whether the compensation allowed to the trustee and its attorneys was excessive and unreasonable.
Whether an order denying a motion to vacate an order settling a trust account is appealable.

Disposition. Affirmed in part and dismissed in part.

Quotations verified verbatim against the opinion

“It is not questioned that in the absence of contrary testamentary directions the ordinary and current expenses of a trust, including the trustees' compensation, should be paid out of income and that extraordinary and unusual charges should be paid from the corpus of the estate.”

“The size of such fees is within the sound discretion of the court (Estate of McLellan, 8 Cal.2d 49, 55 [63 P.2d 1120]) and we find no abuse of discretion in this case.”

79 Cal.App.2d 399 (1947) Estate of ROBERT F. LOPEZ, Deceased. WINIFRED LEONARDINI, Appellant,

WELLS FARGO BANK & UNION TRUST CO. as Trustee, etc., Respondent.

Civ. No. 13286. California Court of Appeals. First Dist., Div. Two.

Apr. 30, 1947. Eric Lyders for Appellant.

Wright & Larson for Respondent. [400]

GOODELL, J.

The respondent trustee filed in the superior court its first account and report in each of two trusts created by the will of Robert F. Lopez, deceased, covering the period from December 29, 1944, to December 29, 1945. In the orders settling the accounts the court allowed compensation to the trustee and its attorneys for their services during said first year of administration and charged one-half thereof against the corpus and one-half against the income, of the respective trusts. From those orders this appeal was taken.

Robert F. Lopez died in 1936. The provisions of his will creating the two trusts were incorporated into a decree of partial distribution entered on December 29, 1944.

The Lopez estate consisted almost entirely of a contingent interest in a trust known as the Evans trust, administered in the State of New York, the beneficiary of which was Mary Evans, a sister of Robert. Mary Evans died on July 15, 1944, whereupon testator's contingent interest ripened into an actual interest. By his will the testator created the Leonardini trust, consisting of the residue of his own small estate and a one-quarter share of his contingent interest in the Evans trust. Appellant is the life beneficiary thereof, and on her death the corpus goes to her son. The Leonardini trust is valued at approximately $300,000 according to the statement on appeal.

By his will the testator also created the Kirby trust, the corpus whereof is a one-sixteenth share of decedent's contingent interest in the same Evans trust. Claribel H. Kirby is the life beneficiary, and on her death the corpus goes to appellant or in case of her death to her son. The Kirby trust is valued at approximately $75,000 according to the statement on appeal.

Estate of Lopez

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GOODELL, J.

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