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Prior to his death, iconic artist and philanthropist Robert Rauschenberg established a revocable trust whose sole remainder beneficiary was the Robert Rauschenberg Foundation. The Foundation is an organization he had established to further his philanthropic and educational initiatives, and to support artists and art related issues.
So the parties looked to the Florida statute addressing trustee fees. At trial, both sides brought in experts and utilized case law to explain their differing world views.
The Foundation focused on the amount of time that the trustees worked and sought to set a reasonable hourly rate. The Foundation sought to expand the doctrine and apply this method to trustee fees. The trustees, on the other hand, focused on the work rendered and value created for the trust.
The eleven factors to be considered are: The amount of capital and income received and disbursed by the trustee; The wages or salary customarily granted to agents or servants for performing like work in the community; The success or failure of the administration of the trustee; Any unusual skill or experience which the trustee in question may have brought to his work; The fidelity or disloyalty displayed by the trustee; The amount of risk and responsibility assumed; The time consumed in carrying out the trust; The custom in the community as to allowances to trustees by settlors or courts and as to charges exacted by trust companies and banks; The character of the work done in the course of administration, whether routine or involving skill and judgment; Any estimate which the trustee has given of the value of his own services; and Payments made by the cestuis to the trustee and intended to be applied toward his compensation.
While the trial court applied the West factors recommended by the trustees, it found that they were still asking for more than was appropriate.
For an analysis on how the court weighed the factors and came to this conclusion, please see Rauschenberg Estate Saga of Trust and Fees Explained.
Since the Florida Statute discussing trustee fees, Fla. Robert Rauschenberg Foundation v. Grutman et al, So. Robert Rauschenberg Foundation, http: Cardozo School of Law. She may be reached at selie law.
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