What May a Family Trustee Charge for a Very Simple Trust?
Question:
What is an acceptable trust fee in the State of Utah? I manage a trust for my Mom. I spend two hours per year on management duties. There is a bank account, Apple stock, and a promissory note. I take the 1099s from the bank and Fidelity Investments to the accountant. He issues the K-1 and figures out total interest. I write a check for the interest accrued based on the accountant’s recommendation. I pay one bill per year—to the accountant. I make checks out to the beneficiary once or twice a year.
Photo by Jaxon Lott on Unsplash
Response:
While my response is not specific to Utah, and I don’t know the size of the trust, it sounds like your role and responsibilities are relatively minimal. I think $1,000 a year would make sense, unless it’s a large or very small trust fund. That would compensate you for your work and responsibility without eating into the principal very much. However, the best practice is to run this by your mother and any future beneficiaries of the trust, so they don’t complain. You should also be aware that you must report your payments as taxable income.
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