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The trustee took a fee from the percentage of rental income received and from a percentage of the real estate tax that was collected, and the beneficiaries objected to the trustee imposing a fee on the tax money received by the trust.
Issue: Did the court err when it denied the trustee's motion for partial summary judgment in regards to an action that challenged in part the trustee's assessment of a fee on portions of trust income that was designated for payment of property taxes?
Law: Even though Haw. Rev. Stat. § 607-18 (1993) allowed for the fee on the tax money,...
Rev. Stat. § 560:7-205 (1993). Bremer v. Weeks, 104 Hawai'i 43; 51, 85 P.3d 150, 158 (2004); in re the Estate of Bishop, 53 Haw. At 605-06, 499 P.2d at 672; in re Wharton's Trust Estate, 28 Haw. At 509; Matthewson v. Aloha Airlines, Inc., 82 Hawai'i 57, 71, 919 P.2d 969, 983 (1996); Mahiai v. Suwa, 69 Haw. 349, 356-57, 742 P.2d 359, 366 (1987); Franks v. City and County of Honolulu, 74 Haw. 328, 335, 843 P.2d 668, 671-72 (1993).
Reasoning: Based on the plain language of…
Law: Even though Haw. Rev. Stat. § 607-18 (1993) allowed for the fee on the tax money, the beneficiaries argued that there was a reasonable restriction on the fee imposed by reason of Haw. Rev. Stat. § 560:7-205 (1993). Bremer v. Weeks, 104 Hawai'i 43; 51, 85 P.3d 150, 158 (2004); in re the Estate of Bishop, 53 Haw. At 605-06, 499 P.2d at 672; in re Wharton's Trust Estate, 28 Haw. At 509; Matthewson v. Aloha Airlines, Inc., 82 Hawai'i 57, 71, 919 P.2d 969, 983 (1996); Mahiai v. Suwa, 69 Haw. 349, 356-57, 742 P.2d 359, 366 (1987); Franks v. City and County of Honolulu, 74 Haw. 328, 335, 843 P.2d 668, 671-72 (1993).
Reasoning: Based on the plain language of and the legislative history underlying HRS § 560:7-205, courts may review the reasonableness of a trustee's determination as to what constitutes income. In this case the trustee's determination of trust income was reasonable because income included real property taxes.
Holding: Vacated and remanded.
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