Non-professional trustees should use the above-mentioned guidelines before taking a fee. Thats why you should consider reading 2 important trustee compensation cases. To see a FREE VIDEO about whether an amendment to a revocable trust is valid, click HERE. v. Florida National Bank of Jacksonville. The Florida Probate Code does state what a reasonable PR fee is, based on a sliding scale that begins with 3% on the first $1 million of value of the estate. Upon petition of any interested person in a proceeding to review the compensation paid or to be paid to the attorney for the trustee, the court may increase or decrease the compensation for ordinary services of the attorney for the trustee or award compensation for extraordinary services if the facts and circumstances of the particular administration warrant. Looking for help or guidance in determining reasonable Trustee fees? Legal advice regarding carrying on of decedents business or conducting other commercial activity by the trustee. and ultimately distribute the trust estate. There is a significant amount of competition currently existing in the fees for services charged by trust departments, and rates generally decrease as the value of the trust assets increase. The Florida Trust Code is a body of statutes created by the legislature for trustees and beneficiaries to follow. These fees shall include services for routine audit of the return, not beyond the examining agent level, if required. With regard to the allocation of a trustees fee, the first question involves whether the fee should be taken from principal or income. There is a huge difference. You can read it for free. (1) 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. Suite 1050, If the amount or method of determining compensation is not provided in the agreement, the attorney is entitled to a reasonable fee, taking into account the factors set forth in subsection (6). Several factors are taken into consideration: Despite the Florida Legislatures failure to provide uniform measures for the reasonableness of trustee fees, it is clear that a trustee is entitled to reasonable compensation for his or her services rendered in administering the trust. In this legal commentary, Florida trust litigator John Pankauski will provide insight. Even if you live in a UTC state, some state statutes allow for courts to consider additional factors if a Trustee's job will be quite difficult and warrants additional compensation. Here's what you need to know. An irrevocable trust is an agreement among a settlor, trustee, and beneficiaries that cannot be revoked or amended. Professional trustees also have to pay self-employment tax on the fees they receive. If interested in learning more about this article or other estate planning, Medicaid and public benefits planning, probate, etc., attend one of our free upcoming virtual Estate Planning Essentials workshops by clicking here or calling 214-720-0102.
What Happened To Krista King,
St Edmonds Rehoboth Bulletin,
Articles N
