What kind of reimbursement do estate trustees get?
Estate Trustees are entitled to reimbursement for necessary legal fees, tax filing fees, and out-of-pocket expenses.
Can a trustee be entitled to reasonable compensation?
Yes, trustees are entitled to reasonable compensation for their services. The trust document should give guidelines. If the trust document is silent as to your compensation, the attorney will determine your compensation based on the state’s case or statutory laws. What if the responsibilities are too much for me?
When does a trust trustee need to be paid?
The Uniform Trust Code (UTC), a model law adopted in 20 states (albeit with slight differences), provides: If the terms of a trust do not specify the trustee’s compensation, a trustee is entitled to compensation that is reasonable under the circumstances.
When does a trustee get reimbursed for a fee dispute?
Rather, reimbursement takes place by court order at the conclusion of the fee dispute. (Of course, a trustee likely will not be entitled to reimbursement of such fees from the trust if the court finds that he or she is liable for wrongdoing.)
When is a trustee entitled to fee reimbursement?
When fee disputes arise, a trustee is generally entitled to reimbursement of fees incurred in his or her defense as a trust administrative cost. However, the right of reimbursement does not allow for payment on a current basis unless so specified in the trust (which is extremely rare).
How does the trustee of a trust get paid?
The trustee’s payment comes from the trust assets. And because as trustee, you’re in control of those assets, that means you’re in charge of paying yourself. You’ll probably also be in charge of determining the amount of your own compensation. Some trusts set out a flat or hourly fee for the trustee, but that’s not too common.
Can a successor trustee be reimbursed for travel?
Aside from this, travel expenses, mileage, and office supplies are all considered necessary expenses for administering the trust, and they’ll be reimbursed to the successor trustee as well if they pay for them. When Will the Successor Trustee Receive Payment?
Can a successor trustee be paid out of her own pocket?
The successor trustee is entitled to be reimbursed for any expenses she’s paid out of her own pocket, in addition to being paid for her services. These might include expenses that had to be paid before the successor trustee could take over the trust assets, such as doctor and funeral bills, utilities, property taxes, insurance, and storage fees.