October 8, 2013
Authored by: Luke Lantta
Before 2008, Kentucky Revised Statutes 386.180 mandated that testamentary trustees make a choice of compensation between either an annual fee or a fee at the termination of the trust. In 2008, the Kentucky General Assembly repealed this statute. The repeal of the statute, however, left unresolved the question of whether its repeal affected trustee compensation for trusts that were in existence before the repeal of the statute. In Jarvis v. National City, the Kentucky Supreme Court resolved that question.
The Kentucky Supreme Court affirmed the Kentucky Court of Appeals and the trial court before it – trustees are not bound by the constraints of the former statute. The repeal of the former statute was complete and unlimited. Thus, trustees of testamentary trusts may collect reasonable fees on trusts that predate the repeal of KRS 386.180.