A tool that estimates compensation for individuals serving as trustees who lack professional credentials (such as lawyers or accountants) in fiduciary roles is essential for estate planning. This instrument factors in elements like the trust’s size, the workload necessary for administration, and pertinent regional legal regulations. For example, a family member managing a trust holding real estate, stocks, and bonds can use such a calculation to determine fair compensation for their responsibilities, encompassing asset management, tax filings, and distributions to beneficiaries.
The significance of this assessment lies in promoting transparency and accountability within trust administration. By providing a structured method for determining reasonable fees, the risk of disputes among trustees and beneficiaries is lessened. Historically, disputes over trustee fees have been a common source of litigation. Using a fee estimation process offers an objective benchmark for evaluating the appropriateness of compensation, aligning with principles of fairness and promoting efficient trust management.
