When are Trustee Fees Paid?
When are trustee’s fees normally paid? (i.e. end of year, beginning of year, prorated monthly?)
There’s no hard and fast rule, but often trustee fees are paid semiannually. For instance, if the fee is 1 percent of the assets in the trust, it might be paid half on January 1st based on the December 31st value and half on July 1st based on the June 30th value. If the end of year value of all the assets in the trust was $500,000, the trustee would receive $2,500 at that time. If the value increased to $550,000 on June 30th, then the next payment would be $2,750.