Court Refuses to Terminate Small Trust for Charities
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.
The full text of this article is available to paid subscribers only. Login or subscribe to read more