Can a trustee charge fees?

A trustee’s standard charging rates (i.e. those that are line with their profession) will only be considered by the court as an initial reference point. The court will scrutinise the reasonableness of the trustee’s charges in relation to the work undertaken as trustee.

What is the trustee fee for Chapter 13?

five percent
Subsection (c) [enacted as (b)] permits a maximum fee of five percent on all payments to creditors under a chapter 13 plan to the trustee appointed in the case.

How far back do they check for bankruptcies?

7-10 years
How Far Back Can a Bankruptcy Background Check Go in California? Keep in mind that bankruptcy is public record, and will appear on your credit report anywhere from 7-10 years from the filing date before it ‘falls off’ or is deleted.

Are trustee fees tax deductible?

Trustee fees are an income tax deduction for the trust but taxable income to you. You must declare these fees on your Form 1040, where you place them on line 21, Other Income. If you’re a professional trustee, this income is also subject to Self-Employment Tax.

How does trustee get paid?

The Trustee can pay themselves from the trust funds based on the terms of the trust or the state’s laws. Some trusts stipulate hourly or flat fees for trustee duties. Professional trustees can earn over $100 per hour, while corporate trustees make 1-2% of the trust’s assets as annual compensation.

Do bankruptcies show up on credit reports?

When you file for Chapter 7 or Chapter 13 bankruptcy—two of the most common individual bankruptcies—it can remain on your credit reports for up to ten years. After a bankruptcy is listed on your reports, it causes serious damage to your credit score until it’s removed.

How much does it cost to have a trustee for a trust?

While percentage fees are standard, this can be problematic for smaller trusts. A trust holding $200,000 and paying a fee of 1.5% would pay an annual fee of $3,000, which may or may not cover the trustee’s costs. Some professional trustees charge a minimum of $5,000 a year.

When is a trustee entitled to fee reimbursement?

When fee disputes arise, a trustee is generally entitled to reimbursement of fees incurred in his or her defense as a trust administrative cost. However, the right of reimbursement does not allow for payment on a current basis unless so specified in the trust (which is extremely rare).

How is the fee for a successor trustee calculated?

These fee schedules are similar to the state laws that calculate an executor’s or personal representative’s fee as a percentage of the value of the gross estate . State law will dictate the institution’s fee if the revocable living trust is silent on this issue. Is the Successor Trustee Also the Attorney for the Trust?

Do you have to declare trustee fees on your tax return?

What you may not do is overcharge. Trustee fees are an income tax deduction for the trust but taxable income to you. You must declare these fees on your Form 1040, where you place them on line 21, Other Income. If you’re a professional trustee, this income is also subject to Self-Employment Tax. Otherwise, it’s income taxable only.

When fee disputes arise, a trustee is generally entitled to reimbursement of fees incurred in his or her defense as a trust administrative cost. However, the right of reimbursement does not allow for payment on a current basis unless so specified in the trust (which is extremely rare).

These fee schedules are similar to the state laws that calculate an executor’s or personal representative’s fee as a percentage of the value of the gross estate . State law will dictate the institution’s fee if the revocable living trust is silent on this issue. Is the Successor Trustee Also the Attorney for the Trust?

How often does the issue of trustee compensation come up?

The issue of trustee compensation comes up more often than most people would suspect. Although disputes about compensation do not flood the courts, when they do occur they are often hotly contested and unpleasant for all involved. The purpose of this item is to illuminate the issues that can lead to litigation on trustee compensation.