In Palm Beach trust lawsuits, you generally “get” attorneys fees paid for from the Florida trust if you have rendered a benefit to the Florida trust. Palm Beach probate courts evaluate whether a “benefit” was conveyed very carefully. Just because you spend money doesn’t mean that you are going to get reimbursed for your Palm Beach trust litigator fees. Here’s a California trust & guardianship case decided a few days ago where a lawyer wanted fees 7 years after providing services in a trust and guardianship matter. This case may cause a Palm Beach trust beneficiary, or someone involved in a Palm Beach guardianship case, wonder whether you will get your probate legal fees reimbursed….or whether you pay your guardianship lawyer yourself.
Trust Lawyer Seeks Attorney Fees for Guardianship
- A trust attorney wanted to get paid from trust funds for service rendered
- The trust lawyer filed an amended petition for attorney fees seeking payment from a trust for legal work she performed on behalf of a trust beneficiary
- The probate court said “no”
- The trust lawyer then moved unsuccessfully for reconsideration of the ruling, and then filed a trust attorney fee appeal – and still lost
Inter Vivos Trust Created
- 1986, Ann creates an inter vivos trust (the Trust)
- Ann = sole trustee & beneficiary
- Ann’s daughter, Diane becomes income beneficiary upon Ann’s death
- July 1996: Ann resigned as trustee
- Accountant = new successor trustee.
Revocable Trust Supports Daughter
- Ann lived with and financially supported her daughter Diane until
- Anne moves to a care facility
- Diane remained in Ann’s home
Guardianship Filed
- September 2003: Ann’s sister files for guardianship
- a petition for conservatorship of Ann’s person is filed
- Sister wants a professional fiduciary as guardian
Daughter Fights Aunt Over Guardianship
- Daughter Diane retained a trust or guardianship attorney to represent her in this guardianship litigation
- Daughter opposed the Aunt’s guardianship petition
- Daughter files her own guardianship petition
- Diane wants to be her mom’s guardian -opposes the professional guardian
Settlement Conference
- April 30, 2004: the relatives agreed at a mandatory settlement conference to professional guardian
- Evidently: the fighting family members in this contested guardianship did not resolve who pays the guardianship lawyers
Attorney Wants to Modify Trust
- A trust lawyer is appointed for Anne
- May 21, 2004: The trust lawyer files a petition to modify the Trust [ Florida Trust Code also permits a trust modification ]
- August 25, 2004: the trial court modifies the trust
- Trustee can pay daughter’s “shelter” and “reasonable monthly utilities,” either by using the Trust income that remained after paying Ann’s monthly expenses, or by invading the Trust principal —-not a bad result for daughter !
Trustee Sues to Remove Daughter From House
- November 2004: the successor trustee of the revocable trust sues daughter Diane : get out of your mother’s house !
- Trustee wants to sell house and move daughter into apartment
- Daughter hires lawyer who defends Daughter and consolidates eviction action with her mom’s guardianship proceeding
Probate Court Modifies Trust to Give $$$ to Daughter
- May 19, 2005: probate court modified the Trust for the support & maintenance of daughter
- Trustee ordered to comply
- Trustee ordered to get an apartment for trust settlor’s daughter !
- July 2009: Ann dies
- Now daughter is trust income beneficiary
7 Year Old Trust Attorney Fee Petition
- •· August 28, 2012: 7+ years later, the trust lawyer files a petition for attorney fees in the guardianship case
- •· Trust lawyer wants $31,000 for legal work she did for daughter from 2003-2005
How do you think the court ruled ? Want to read the trust legal opinion from the California appeals court that handled this trust attorney fee dispute: Here’s the link: http://www.courts.ca.gov/opinions/nonpub/G048285.PDF