Trustee fees are the payments thatll be made to your appointed Trustee in exchange for the service theyll provide as they fulfill their duties in the role. While states dont have Trustee compensation mandates, they generally do have guidelines for Executor compensation, which you absolutely could use as a reference. (See commentary below about the Robert Rauschenberg Foundation case.). , Read More What Is a Petition for Discharge? Absent language that specifies the terms of a trustees compensation, the Florida statutes state that the trustee is entitled to reasonable compensation. Theres also the Uniform Trust Code (UTC), which some (but not all) states have adopted in effort to standardize all things related to Trustsincluding Trustee fees! There can be some real benefits to using a trusted person in your life as your Trustee. Therefore, any compensation to be paid to a trustee must be contained within trust accountings, unless waived by all interested parties. An attorney or a person related to the attorney is deemed appointed in the trust instrument when the trust instrument appoints the attorney or the person related to the attorney as trustee, cotrustee, successor, or alternate trustee in the event another person nominated is unable to or unwilling to serve, or provides the attorney or any person related to the attorney with the power to appoint the trustee and the attorney or person related to the attorney was appointed using that power. With regard to the principal and income question the trust controls and absent language in the trust addressing this issue then Florida Statute 738.701 and 738.702 govern. Virtually no beneficiary likes to pay their trustee compensation. This becomes especially important if you plan to use a Personal Trustee. As the founder of Jurado & Associates, PA, a specialty business, real estate, and immigration law firm, Romy's practice focuses primarily on domestic and international business transactions, with a strong emphasis on company formation, stock sales, and assets, contract drafting, and business immigration. (1) (a) Except as provided in paragraph (d), if the trustee of a revocable trust retains an attorney to render legal services in connection with the initial administration of the trust, the attorney is entitled to reasonable compensation for those legal services, payable from the assets of the trust, subject to s. 736.0802 (10), without court Bank, 74 So.2d 779 (Fla. 1954). Are you the beneficiary of a Florida trust? Trustee Compensation - What Is Reasonable & Should Be Considered? The first is from the Second District Court of Appeal. Just CLICK HERE. Under the Florida Trust Code, A Trustee is entitled to compensation that is reasonable under the circumstances. F.S. They also might charge an additional percentage based on a Trusts annual income. 515 East Las Olas Blvd., Read on to find out. If the trustee of a revocable trust retains an attorney to render legal services in connection with the initial administration of the trust, the attorney is entitled to reasonable compensation for those legal services, payable from the assets of the trust, subject to s. Unless otherwise agreed, compensation based on the value of the trust assets immediately following the settlors death and the income earned by the trust during initial administration at the rate of 75 percent of the schedule provided in s. An attorney who is retained to render only limited and specifically defined legal services shall be compensated as provided in the retaining agreement. On an estate with an inventory value of $500,000, fees to the personal representative up to $15,000 are reasonable. He should know. A separate agreement or a provision in the trust suggesting or directing the trustee to retain a specific attorney does not obligate the trustee to employ the attorney or obligate the attorney to accept the representation but, if the attorney who is a party to the agreement or who drafted the trust is employed, the compensation paid shall not exceed the compensation provided in the agreement. This initial period is not intended to include continued regular administration of the trust. 2. The typical duties of a field office Trial Attorney include: Oversee the administration of bankruptcy cases filed in the judicial districts served by the Region and the field office; Litigate issues arising in chapter 11 proceedings, including those involving corporate governance, and issues arising in employment applications, fee applications . Unlike the personal representative fees, the statutes do not provide guidance as to what is deemed reasonable compensation. However, Florida case law has established a long list of factors that are to be used in calculating trustee fees, some of which are: Case law further established that the lodestar method of determining fees (i.e., multiplying the number of hours reasonably expended by a reasonable hourly rate) and fees based on the percentage of the trusts value are not to be used when calculating reasonable compensation for a trustee. To see a FREE VIDEO about whether an amendment to a revocable trust is valid, click HERE. Also like the personal representative, the statutes once again provide guidance as to what is considered reasonable compensation. For ordinary services of attorneys in formal estate administration, the following table sets forth the amount of compensation that is presumed to be reasonable based on the inventory value of the probate estate assets and the income earned during administration: The personal representatives attorney may receive additional compensation for extraordinary services, which may include the involvement in a will contest, postmortem tax planning, review or preparation of an estate tax return, the purchase or sale of real property by the estate, and other services.
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