As discussed in last week’s blog, the trustee of an estate is charged with a number of tasks and responsibilities. In accordance with the amount of work involved, the trustee is entitled to fair compensation. At one time in Georgia history, trustees did not receive any form of compensation for their services. Because the intricacy and complexity of the role of trustee has greatly evolved, contemporary legislation now allows trustees to be paid for their time and service. In this article – which is a continuation of the Serving As An Estate Trustee series, we’ll briefly discuss how that payment is determined.
The state of Georgia determines a trustee’s fees and payment based on the value of the trust or estate in question. According to Georgia law, the fee for the trustee or executor needn’t be part of the trust. Instead, it can be part of a separate written agreement. Georgia is one of a small number of states to adopt a fee schedule based on the trust or estate’s assets. For example:
- The state of Georgia allows compensation for corporate trustees equal to their published fees
- Individual trustees are allowed compensation of 1% of the fair market value of the estate’s property upon initial funding
- Individual trustees are further entitled to an annual fee (between 0.5% and 1.75%) based on the value of the estate’s assets
New legislation enacted in March 2018 affects the trustee’s power, and, in some instances, the way trustees might be compensated. Have you been named as a trustee for a family member or friend? Are you selecting a trustee for your own estate? Don’t attempt to navigate the complex laws governing wills, estates, and trusts on your own. Our experienced estate planning attorneys are prepared to help you every step of the way. Contact the estate planning experts at the Grissom Law, LLC today to get professional help you can rely on. Estate law is our specialty. Seeing you successfully navigate the probate courts is our goal.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.