Generally, a successor trustee cannot change or amend a trust. Most trusts are initially managed by their creator or original trustee, while they are still alive and competent. But after their passing, a successor trustee must step in to take legal title to assets and administer the trust according to its terms.
Can a Trustee pay trust expenses?
Most trustees are entitled to payment for their work managing and distributing trust assets—just like executors of wills. Typically, either the trust document or state law says that trustees can be paid a “reasonable” amount for their work.
How much does it cost to have a trustee for a trust?
While percentage fees are standard, this can be problematic for smaller trusts. A trust holding $200,000 and paying a fee of 1.5% would pay an annual fee of $3,000, which may or may not cover the trustee’s costs. Some professional trustees charge a minimum of $5,000 a year.
What are the accounting fees for a trust?
These fees are also dictated by the terms of the trust agreement or by state law. They are usually calculated similarly to the successor trustee’s fee. Accounting fees will vary depending on the overall value of the trust and the type of assets it holds.
What makes a trustee a cost efficient service?
Cost efficient trustee services treat trust accounting as a commodity with a super focus on automation and efficiency. Imagine a trustee sending beneficiaries an invoice only for trust accounting. Nobody wants to overspend on this commodity type service.
Can a non-professional trustee charge a higher fee?
Where there’s no professional trustee acting, the non-professional trustee can certainly charge a higher fee and can use the professional standards as a guide. However, they should look at other trust costs. For instance, professional trustees usually take care of the investments as part of their function.
