Question:
My parents have a living trust. What is the trustee fee for an estate worth between $5 and $10 million dollars, where I have an account split between the two trusts and I did all the paperwork?
Response:
Professional trustees generally charge an annual fee based on the amount of funds in the trust. Typically, this is between 0.8% and 1.2% of the funds under management for the first $2 million and then becomes a smaller percentage on amounts above $2 million. Though not all trust companies post their fee schedules online, here’s one from Edward Jones:
SCHEDULE OF ACCOUNT FEES
Annual Base Charge Trustee or Co-trustee: $1,200
Managing Agent: $600
IRA: $300
Fee schedules for various other companies can be found in this Wealth Advisor article, published in August 2019.
In my experience, banks and trust companies are also willing to negotiate fees on larger trusts since they are generally more profitable to run than smaller trusts. It doesn’t take that much more work manage a $5 million trust than a $500,000 trust. While the investments will undoubtedly be more complicated, the client contact and communication may be the same.
Related Articles:
What is the Tax Treatment of Trustee Fees?
What Will an Institutional Trustee Charge for Closing our Trust?
