What is a reasonable compensation for a trustee of an irrevocable Trust?
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What is a reasonable compensation for a trustee of an irrevocable Trust?
Asked on June 9, 2015 under Estate Planning, Michigan
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
The compensation payable to a trustee for the performance of their duties varies from state-to-state, as well as the specific terms and conditions provided by the trustor. Typically, trustees charge a fee of not less than a 1% of the total worth of the estate. However, as a general rule, it will not be significantly higher than 1% of the estate.
What you can do now is to google the name of the state in which the Trust is located and then google the words "trustee's fees". You should then be able to find the appropriate state schedule.
Note: Occasionally the administration of a Trust ends up being greatly more complex and time-consuming than is usual. In such a case, the trustee can usually petition the court to allow for a greater fee; it typically has the authority to make reasonable adjustments to a trustee's fee.
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