In Robert Rauschenberg Foundation v. Grutman, a Florida appeals court recently held that $24.6 million was reasonable compensation for trustees that served for approximately six years. While the court agreed that trustee's fees should not be based on a percentage of the assets of the trust, it reviewed the time involved, the skill and experience of the trustees, the success of the trust, the customary wages paid to trustees and other factors to determine reasonable compensation.
This case teaches an important lesson—where trustee's fees are not set forth in or determinable by the trust agreement or agreed to by the trustee and the beneficiaries, state law will determine the compensation of the trustee.
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