Jan 28, 2008
Court of Appeal reverses the charging of administrative trust expenses to GMSR’s client

In the Matter of the James G. Stull Living Trust (2008) 2008 Cal.App. Unpub. LEXIS 697 (California Second District Court of Appeal, Division Six) [unpublished]. In approving a trust accounting involving a settlor’s trust that divided into two subtrusts upon the settlor’s death—one for the benefit of his children and one for the benefit of their stepmother, the settlor’s surviving spouse—the trial court ruled that all trust administrative expenses must be charged to the children’s subtrust rather than allocated between the two subtrusts. Representing the children on appeal, GMSR argued that the court erred by refusing to hear extrinsic evidence that the trustor did not intend their subtrust to bear all the expenses. The Court of Appeal agreed and ordered a new hearing.