In Re Trust of Katherine D. Graham

Decedent created a trust and named one of the beneficiaries and Appellee, a third-party

bank, as co-trustees. The trust beneficiaries petitioned for Appellee’s removal and for the

substitution of another beneficiary as co-trustee. The petitioners also sought an order

directing Appellee to reimburse the trust for fees paid to Appellee as co-trustee. The trial

court held that Appellee administered the trust diligently and without any malfeasance,

misfeasance, or non-feasance. As such, the trial court implicitly found that Appellee was

entitled to its fees. The trial court further found that it would violate a material purpose of

the trust to appoint, as co-trustee, another related beneficiary. Ultimately, the trial court

declined to remove Appellee and to substitute another beneficiary as co-trustee. Appellant

is the only petitioner/beneficiary to appeal. Although we conclude that the trial court erred

in its material purpose finding, for reasons discussed below, we affirm the trial court’s

decision not to remove Appellee as co-trustee. Further, we affirm the trial court’s denial

of the petitioners’ request that Appellee reimburse the trust for its fees. Appellee’s motion

for appellate attorney’s fees is denied.