A tool assists in determining appropriate remuneration for individuals managing family trusts. It often incorporates factors such as the size and complexity of the trust’s assets, the trustee’s responsibilities, and prevailing compensation standards within the relevant jurisdiction. For instance, it might calculate compensation based on a percentage of the trust’s assets under management, or an hourly rate for services rendered.
These instruments are valuable because they promote fairness and transparency in trustee compensation. They help to avoid disputes among beneficiaries and the trustee by establishing a clear and justifiable basis for fees. Historically, determining appropriate compensation involved subjective assessments, leading to potential conflicts of interest and feelings of inequity. Modern tools offer a more objective and defensible approach.
