What is the fee for a trustee?
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What is the fee for a trustee?
Asked on October 19, 2015 under Estate Planning, New Jersey
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
My research suggests that in NJ, if the Trust document has not yet been drafted, the maker a/k/a the grantor can expressly state the compensation that the trustee will receive. Tyoically, however, a Trust will provide that a trustee will receive "reasonable compensation".
Such sompensation has been set by state law. Typcially, a trustee takes an annual fee and theis fee is split into 2 amounts an income commission and a corpus commission.
Income Trustees are entitled to a 6% annual fee on all income received by the Trust.
Corpus Trustees are entitled to an annual commission on the corpus of the Trust. This includes money that in previous years qualified as income but has since been reinvested. The fee for a Trust corpus is .005% of the first $400,000 and .003% on the value of the corpus that exceeds $400,000.
In addition to income and corpus fees, the trustee is entitled to a percentage-based termination fee when the Trust ends. This fee depends on the value of the Trust and amount of time they served as trustee prior to termination.
Note The above fees/percentages change depending on the number of trustees who serve. If there is more than one trustee, a slight percentage is added to the overall commission that is divided between all of the trustees.
To be certain of all of this, you can consult with a probate attorney in the local area.
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