What do Trust Protectors Charge?
Question;
What is a standard trust protector fee? Is it paid every year or only when the protector’s services are requested?
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Response:
Typically, trust protectors are either family members or close friends who are not paid. Some attorneys also serve in this capacity, in which case they are paid when and if they have to intervene, usually at their standard hourly rates. Professional trust protectors may also charge a flat annual fee simply for having the responsibility of checking in on the status of the trust an an annual basis. Many attorneys refuse to act as trust protectors because they are concerned that they will incur liability if they don’t step in when needed, which can easily happen if there’s no communication with the clients after they execute the trust and leave the law firm’s office. Trusts also typically cover any costs the trust protector may incur—for instance, the cost of hiring an attorney, if necessary.
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Hello Harry,
In the instance where it is a family member AND the articles of the trust specifically state that the Trust Protector may receive compensation; What is a standard trust protector fee? (For a trust with modest Assets of $1.75MM-$2.0MM.)
Signed,
a trust Protector for my Uncle and Aunt
Brian,
There really isn’t a standard fee for trust protectors because its not a standard role with standard fees, such as for a professional trustee. When a lawyer serves as trust protector, they will charge for their time at their standard hourly rate. But that won’t work for a non-lawyer serving in this role.
For a trust the size you describe, I would think an annual fee for between $500 and $1,000 would make sense depending on how much time you are actually spending. I presume you are spending a few hours a year reviewing trust accounts and staying aware of what is happening with the trust. You also have ongoing responsibility unrelated to the amount of time you actually spend and should be compensated for, in effect, being on call.
Harry
Thank you Harry!
This helps a lot. Since activation in September I have been doing a lot of the coordinating with the Corporate Trustee, the assisted living facility, the Trust lawyer and being a power of attorney-for health care. They all have been using me as the point person for their questions and requests.
Thank you again,
Brian