A trustee is a person who serves in an important role in managing the assets and administration of a trust. This person is also entitled to receive compensation based on their efforts managing the assets and the responsibilities associated with the trust. Trustee fees are payments for services rendered whether the trustee is an organization or an individual. Various duties are associated with the responsibility of a trustee and these duties are clearly outlined in the trust document.
The primary purpose of the trustee is to ensure that the grantor or creator’s wishes are honored when it comes to the trust beneficiaries. This can include distributing assets or payments from the trust to its beneficiaries and handling tax filings for the trust. When creating your own trust, you would typically specify the terms of payment in the trust document itself.
There are a few different ways that you might approach the process of trustee fees, such as a set percentage of the assets in the trust each year or a flat dollar amount each year.
If there are not many duties associated with the administration of your trust, this could lead to a trustee fee arrangement of an hourly payment for the person’s time. You can also establish a limit on how much can be paid out in trustee fees. State laws will determine the fees in the event that you do not document them in your trust.
If you have not yet appointed a trustee or are curious about how to choose whether an individual or an entity should serve in this role? Our New Hampshire estate planning law office is here to support you with these questions and concerns.
Schedule a consultation today with a trusted estate planning lawyer to learn more.