Opinion ID: 1154523
Heading Depth: 1
Heading Rank: 14

Heading: holman's lack of good faith in setting and taking his fee

Text: William Holman knew from the outset that a normal individual cotrustee's fee was equal to one-half of the corporate trustee's applicable fee schedule. In the first half of 1980, Mr. Holman engaged the services of Sharon L. Dean, information broker of Information Unlimited, to do research and advise him what a reasonable fee charged by him would be. In a letter to Mr. Holman dated June 5, 1980, Sharon L. Dean transmitted to him the results of her research. Her letter stated, Based on my findings, I would deduce that .2 of 1% to .3 of 1% on the annual value of the trust would be considered a reasonable fee. Exhibit 42. Mr. Holman testified that the average charge by investment counseling firms for managing an account the size of the Stuart trusts was.5 of 1 percent to .6 of 1 percent. Ms. Dean's information indicates that the normal cotrustee fee of .2 percent to .3 percent is one-half of that average. William Blanchard, Assistant Vice President and Manager of the Charitable Trust Administration Section of Seattle-First, told Mr. Holman in an early meeting regarding the Stuart trusts that Holman's fee should be 50 percent of the bank's fee.