$24.6 Million for Three Trustees: How Florida Sets Trustee Fees (Rauschenberg Foundation v. Grutman)

When the artist Robert Rauschenberg died, his revocable trust named three individual trustees. The beneficiary was his foundation. The trustees asked for compensation; the fight was over how much, and how to measure it.

The Positions

• The Foundation argued for a lodestar calculation, hours times a reasonable rate, which it put at about $375,000.
• The trustees sought roughly $51 to $55 million.
• During their service, trust assets grew from about $605.6 million to about $2.179 billion.

The trial court awarded $24.6 million.

The Decision

The Second District affirmed (No. 2D14-3794, Jan. 6, 2016). Under Florida’s Trust Code, a trustee who isn’t paid a set amount by the trust instrument is entitled to compensation that is "reasonable under the circumstances" (§ 736.0708). The court held that reasonable trustee compensation is determined by the multi-factor test from West Coast Hospital Ass’n v. Florida National Bank, 100 So. 2d 807 (Fla. 1958), not by the lodestar method from Florida Patient’s Compensation Fund v. Rowe that governs attorney’s fees. The legislative history of § 736.0708 cites West Coast, and competent evidence supported the award.

The Factors That Matter

The West Coast analysis looks at the whole picture, including the size of the trust, the responsibility and risk involved, the time and skill required, the character of the work, and the results achieved. Hours are one factor, not the formula.

Lessons for Florida Families

• If you are naming individual trustees, set their compensation in the trust document. Silence invites litigation.
• Beneficiaries who believe fees are excessive can object, but the test is reasonableness under all the circumstances, not an hourly audit.
• Trustees should keep records of time, decisions, and results; they are the evidence in a fee hearing.

Source: Robert Rauschenberg Foundation v. Grutman, No. 2D14-3794 (Fla. 2d DCA Jan. 6, 2016).

Watch the Oral Argument

This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.

Florida Court Case: Artist Estate Dispute | Oral Argument (2nd DCA)

Go Deeper

• What Does $25 Million in Probate Fees Get You? (You May Be Surprised)
• Florida Trustee Duties and Beneficiary Rights: Accountings, Self-Dealing, and the 6-Month Deadline
• Who Pays the Lawyers in a Florida Trust Lawsuit? Attorney Fees, Trust Assets, and Penalty Clauses

Frequently Asked Questions

How are trustee fees set in Florida?

If the trust doesn’t set them, a trustee is entitled to reasonable compensation under § 736.0708, determined by the multi-factor West Coast Hospital test.

Are trustee fees calculated by the hour in Florida?

Not primarily. The Rauschenberg court held the lodestar method used for attorney’s fees does not control trustee compensation.

How much did the Rauschenberg trustees receive?

The trial court awarded $24.6 million, and the Second District affirmed in 2016.

Can beneficiaries challenge trustee fees?

Yes. Beneficiaries can object and ask the court to determine reasonable compensation.

Talk to a Florida trust litigation lawyer

Weidner Law, P.A. handles Florida trust disputes and probate appeals from St. Petersburg. If you need a trust litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.

Read the law yourself, free: the full Florida Probate Code and Probate Rules and the Florida Trust Code are on floridarules.net.

This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.