Trustee’s fees equaling 30% of income were not unforeseen by donor, it says
Despite the recommendation of the state Attorney General to terminate a $600,000 trust for the benefit of three separate charities because of a high proportion of trustee’s fees, the Appellate Court of Illinois has refused to terminate the trust. It has reversed a trial court decision authorizing the termination. ( Church of the Little Flower v. US Bank, No. 4-12-0266, 11/5/12 .) Erma Donelan established a trust in 1991, with income and emergency funds to herself for life. Any assets exceeding $750,000 at her death were to be distributed 20% to Church of the Little Flower, 20% to St. Joseph’s Home, and 60% to Friends of the Sisters of St. Francis, now a Foundation. Property worth $750,000 was to retained in further trust to pay 7% income to her four sisters-in-law, with any remainder worth more than $500,000 at the death of the last of them to be held in further trust for the three charities.