Probate, Substantiation Of Reasonableness Of Fees: Trustee Benefiting Herself, Not The Trust, Not Entitled To Reimbursement Of $500,000 In Attorney’s Fees And Costs In Various Probate Proceedings

Besides That, Fee Substantiation Of A Re-created, Severely Redacted Nature Did Not Support Fee Recovery. 

            Decedent in In re Andersen Family Trust, Case Nos. B286565/B286867 (2d Dist., Div. 4 June 5, 2019) (unpublished) left about $1.3 million in assets to three beneficiaries, one of which was designated as the trustee.  After a to-do on distribution of assets which was largely won by beneficiaries, trustee sought $500,000 in attorney’s fees and costs for doing battle in various proceedings with the beneficiaries.  The lower court denied the request on several grounds.

            The 2/4 DCA affirmed.  The main problem was that trustee failed to do an allocation, with most of the work relating to protection of trustee’s own interests rather than for the benefit of the trust—with the trust’s benefit being of pivotal concern when it comes to reimbursement of fees and costs in the probate arena.  (Whittlesey v. Aiello, 104 Cal.App.4^th 1220, 1231 (2002).)  Beyond that, the fee substantiation was flimsy, consisting of re-created time and severely redacted billing entries such that the lower court was correct in concluding it was impossible to apportion fees for trustee’s versus the trust’s true interest.