• filter:

Trustee Fees

  • Page :
  • 1
  • Text Only
  • Search this Topic »
Voting History
rated:
I am one of several beneficiaries of a Florida living A/B trust where both settlors are deceased.  The final distribution
proposal for the B side included a 2.5% fee to be paid to the Trustee (one of the beneficiaries).  I asked the Trustee's
lawyer (not on speaking terms with the Trustee) for an accounting of what effort by the Trustee warranted that payment.
Her answer was the Trustee fee is 2.5% of the value of the B Trust and that the Trustee is not required to itemize every action,
meeting, etc. that the Trustee performs or attends in administering the Trust.  The trust document only specifies that the
Trustee shall be entitled to reasonable compensation for services and reimbursement for expenses incurred.  I can't find
anything about a set fee in Florida for Trustees.  Can anyone shed some light on this?


 

Member Summary
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
I'm guessing you are misunderstanding the term "reasonable compensation".  2.5% is what's deemed "reasonable" for overseeing a Trust; they arent expected to submit a time card before being paid, like you seem to expect.

rated:
I can see why you aren't on speaking terms with the trustee. I wouldn't want to speak with you either.

2.5% isn't unreasonable. Percentage based compensation is standard for these kind of things.

rated:
http://web2.fkks.com/uploads/news/Reasonable_Compensation.pdf 

"Florida also provides reasonable compensation for personal representatives of an estate. But, it does so pursuant to a more complex scheme. Florida first provides a statutory schedule “presumed to be reasonable compensation” of 3 percent of the first $1 million, 2.5 percent of the next $4, million, 2 percent of the next $5 million and 1.5 percent of assets in excess of $10 million."

2nd link on Google "trustee fee schedule florida"

rated:
jarfykk said:   http://web2.fkks.com/uploads/news/Reasonable_Compensation.pdf 

"Florida also provides reasonable compensation for personal representatives of an estate. But, it does so pursuant to a more complex scheme. Florida first provides a statutory schedule “presumed to be reasonable compensation” of 3 percent of the first $1 million, 2.5 percent of the next $4, million, 2 percent of the next $5 million and 1.5 percent of assets in excess of $10 million."

2nd link on Google "trustee fee schedule florida"

  
Cool so under that fee structure, which seems to recap something from Florida statute 733.6171 ( http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_S... ), a 2.5% fee would apply if the total value of the trust is between $5.94 and $6.06 million.

According to that fee schedule, (which, who knows if it applies in this case, but it's nice and clear!), if the trust is worth less than $5.94 million, 2.5% is too stingy (the OP should be fighting to pay more!) and if it's worth more than $6.06 million, 2.5% is too generous.

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017