When someone passes away, their assets and property must be distributed according to their wishes or state law. The person who is responsible for overseeing this process is called an estate trustee, also known as an executor. While serving as an estate trustee is an important and often emotionally taxing responsibility, it is also a paid position. In this blog post, we’ll explore the topic of estate trustee fees, including how much they can be and who is entitled to receive them.
Estate trustee fees are the compensation paid to the person who is responsible for administering an estate. The fees are meant to compensate the estate trustee for their time and effort in managing the estate’s affairs, which can include:
- Gathering information about the deceased person’s assets and liabilities
- Paying off any outstanding debts or bills
- Distributing assets to beneficiaries
- Filing tax returns on behalf of the estate
- Handling any legal issues related to the estate
The amount of estate trustee fees that can be charged varies depending on a few factors. In most cases, the fee is based on a percentage of the value of the estate. This percentage can range from 0.5% to 5%, depending on the size and complexity of the estate. For example, if the estate is worth $500,000 and the estate trustee fee is 2%, the estate trustee would receive $10,000 as compensation for their services.
In addition to the percentage-based fee, estate trustees may also charge an hourly rate for their services. This rate can vary depending on the estate trustee’s experience and qualifications.
Estate trustees are rightfully entitled to compensation for the services they provide when managing an estate. In some instances, however, additional fees may be paid out to professionals such as attorneys or accountants if brought on board by the trustee in charge of administering proceedings.