In re Robert W. Ashcraft Trust

Summary

The Michigan Court of Appeals affirmed the denial of Susan J. Nazem’s petition for attorney fees and costs from the Robert W. Ashcraft Trust. The court held that MCL 700.7904(1) permits, but does not require, an award of fees when a party enhances, preserves, or protects trust property, and that the probate court acted within its discretion in finding that Nazem’s litigation did not benefit the entire trust. The court also concluded that equity did not require shifting her fees to the Trust.

Holdings

1. MCL 700.7904(1) authorizes, but does not require, a probate court to award costs and reasonable attorney fees from trust property. The statute's use of the word "may" and the phrase "as justice and equity require" leaves the award within the probate court's discretion.
2. Nazem was not entitled to attorney fees because she failed to establish that her litigation enhanced, preserved, or protected the entire trust or provided a distinct benefit to the trust property.

Questions Presented

1. Whether the probate court abused its discretion by denying Nazem's request for attorney fees and costs from the trust under MCL 700.7904(1).
2. Whether Nazem's litigation enhanced, preserved, or protected trust property within the meaning of MCL 700.7904(1).
3. Whether justice and equity required an award of attorney fees even if the statutory conditions were satisfied.

Disposition

affirmed