Opinion ID: 2356141
Heading Depth: 1
Heading Rank: 3

Heading: Trustee Fees

Text: Fred cross-appeals arguing that the trust only allowed for fees to be paid to a corporate trustee, and because Kelsey is not a corporate trustee, she is not entitled to fees. This court long ago adopted the American rule that a trustee is entitled to reasonable compensation for his or her time and trouble. Sutton v. Myrick, 39 Ark. 424 (1882). A trustee is entitled to reasonable compensation out of the trust estate for services as trustee, unless the terms of the trust provide otherwise or the trustee agrees to forgo compensation. Restatement (Third) of Trusts § 38 (2003). Where a trust specifically states that a trustee is to serve without compensation, such a provision might be enforceable. See, e.g., Hill v. Zanone, 184 Ark. 594, 43 S.W.2d 238 (1931). No such provision is found in Anne's trust. Fred argues that the fees were arbitrarily awarded. He also argues that Kelsey seeks compensation for tasks that were performed by others who have already been paid for their services. Kelsey testified that she requested $125,000 because her attorney told her to seek that amount. Accountant Norris Taylor reportedly told her to ask for a higher figure; however, Taylor did not testify, and Kelsey testified that she was unaware of the methodology Taylor used in reaching the sum sought in fees. Where a trustee has rendered services for which he or she has not been fully compensated, the court should allow compensation out of the trust principal or income. George Gleason Bogert, The Law of Trusts and Trustees, § 975, at 121 (2nd ed.1983). As noted in our early cases, the trustee is entitled to a reasonable fee. In arriving at a reasonable fee, the circuit court may consider such factors as: the time consumed in carrying out duties under the trust; the costs the trustee may have incurred; the nature of the services performed, including whether such services were routine or required skill and judgment; fees received by the trustee from beneficiaries to compensate the trustee; the fidelity or disloyalty displayed by the trustee; and the value of the services offered by the trustee in light of the trustee's experience and skill level. See id. at § 977, at 154 (2nd ed.1983). This matter is remanded for reconsideration of compensation of the trustee consistent with this opinion.