In re: Estate of Fridenberg

The Pennsylvania Attorney General appealed a superior court's order that reversed the Philadelphia County Orphans' Court order which held Wachovia Bank was not entitled to receive commissions from the principal of an estate for its trust administration services. The Decedent Anna Fridenberg passed away in 1940, leaving the residue of her estate and other property to a trust for five named individuals no longer living. The remainder of the net income was to be given to the Jewish Hospital Association of Philadelphia. Wachovia Bank was the trustee to the Friedenberg estate and filed the annual accounting of the estate. The accounting also included requests for commissions to be paid out of principal for Wachovia and one of the individual successors. The Attorney General objected to this request, arguing the law in effect at the time the trust was created prevented parties who served as both executors and trustees under a will from receiving more than one commission from principal. The Attorney General noted Wachovia's corporate predecessor already received a commission from principal for its services; therefore, Wachovia was not entitled to another commission from principal. The Orphans' court sustained the objection, holding the law at the time the trust was created barred more than one commission from principal, despite subsequent changes in the law that now allow more than one commission. Wachovia appealed, and the Superior Court reversed, holding that the numerous legislative enactments over the past half-century permitting more than one commission for previously established trusts were constitutionally valid. Upon review, the Supreme Court agreed with the Superior Court's ruling and affirmed that court's decision. View "In re: Estate of Fridenberg" on Justia Law