What is an appropriate fee for a trustee?

Most corporate Trustees will receive between 1% to 2%of the Trust assets. For example, a Trust that is valued at $10 million, will pay $100,000 to $200,000 annually as Trustee fees. This is routine in the industry and accepted practice in the view of most California courts.

How much is a trustee fee for a trust?

So for a trust with $5 million in assets, the fee would work out to $50,000 a year. With smaller trusts that use a flat fee model, the numbers can look very different. For example, say you have a trust that has $200,000 in assets. Using the 1% rule as a guideline, your trustee would be able to collect $2,000 a year for their services.

What is reasonable compensation for a trust trustee?

The reasonableness of the total fees paid to all Trustees when more than one Trustee is serving. Comparable charges for similar services. (e.g. what is the custom in the geographic area where the Trust is being distributed?)

Can a trustee of a trust not be paid?

By earned, we mean that all fees must be paid after the Trustee properly, and reasonably, manages the Trust administration. If a Trustee does not work, then the Trustee will receive no pay no matter what the circumstances.

How is the fee for a successor trustee calculated?

These fee schedules are similar to the state laws that calculate an executor’s or personal representative’s fee as a percentage of the value of the gross estate . State law will dictate the institution’s fee if the revocable living trust is silent on this issue. Is the Successor Trustee Also the Attorney for the Trust?

When do I have to pay a trustee’s fee?

There are two big caveats to all Trustee’s fees: (1) if the Trust document specifies a compensation amount, then that controls (unless the court orders otherwise), and (2) all fees must be earned. By earned, we mean that all fees must be paid after the Trustee properly, and reasonably, manages the Trust administration.

Who is the trustee of a revocable trust?

One unique aspect of acting as trustee of a revocable trust is that you owe fiduciary and other duties only to the settlor or other person having power to revoke the trust. This can include someone to whom the settlor granted the power to revoke or someone appointed to act on behalf of the settlor (such as a conservator).

How are trustees paid in Florida probate court?

If fees are contested, what method does the Florida probate court use to assess them? In Florida probate litigation, trustees usually get paid according to a fee clause in the trust instrument. Can a trust allow for hourly rate payments?