Found an issue on this page? Let us know and we will look into it as soon as possible.
How much money can a person charge for being executor of his parents trust?
Anonymous7 views3 answers
Property left by a parent to children is to be divided equally after sale of said property, as per the trust. One child named as executor of trust. No amount or percentage named in the trust. Only statement that the executor may charge a fee for executing the trust, to which all beneficiaries shall agree upon.
In California, it is typical to see 1% of the gross estate as a Trustee fee. Local customs and practice may be different in Arizona. FWIW, "executor" is a term for a Will. If you mean Will and not Trust, those fees are set by statute and are a sliding scale of gross value of the estate usually. If you do mean Trust, the person appointed is called a Trustee.
This is intended to be general guidance and not necessarily state specific advice. There are some concepts that are the same or similar in most jurisdictions but not all. Use the .com web site to find an attorney in your area for state specific advice. In addition to that, contact your local bar association for referral to an attorney who specializes in this or talk to friends and neighbors to ask about an attorney they have used and liked. Often, but not always, the attorney will do an initial consultation FREE OF CHARGE. You will then be in a better position to determine what to do next. Best of luck to you!
The trustee can charge only a "reasonable" fee. Some states have case law that can be looked to as guidelines. I am not an AZ attorney but such an attorney could give you the state's rule of thumb. Finally, since all beneficiaries must agree you have the power to insure that the fee will be reasonable and customary. Also, be aware that that trustee will pay an income tax on the fee and it must be included in their tax return as income.
Hope this helps. Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is [email protected] . For further tax advice visit his website at www.sjfpc.com . and blog at >
You cannot usually charge a percentage fee under the Arizona Trust Code. Your fee as a personal representative or trustee should represent the value of what you are doing. If you are cleaning a house, for example, perhaps $10 per hour. If you are doing bookkeeping to give information to a CPA, perhaps $15 to $20 per hour. If it is a trust, the beneficiaries can still object to the payment by filing a complaint.
I hope this helps.
