Trustee commissions are governed by the Surrogate’s Court Procedure Act § 2309. Taking on the role of trustee entitles a person to the commissions proscribed by the statute. According to SCPA § 2309(1), a trustee under a will or lifetime trust is entitled to the reasonable and necessary expenses he personally incurs in acting as a trustee, in addition to a commission of 1% for all money paid out of the principal of the trust.
In addition to that 1%, SCPA§ 2309(2) further provides that a trustee receive the following annual commissions:
1- $10.50 per $1,000 or major fraction thereof on the first $400,000 of principal, which comes to a little less than 1%;
2- $4.50 per $1,000 or major fraction thereof on the next $600,000 of principal;
3- $3.00 per $1,000 or major fraction thereof on any additional principal.
The commissions will be computed either on the value of the principal in the trust as of the end of the period for which commissions are payable OR on the value of the principal of the trust at the beginning of such period (provided that the option elected by the trustee for the first period for which such commissions are payable shall be used during the continuance of the trust and shall be binding on any successor or substitute trustee or trustees).
To discuss your role as Trustee, call the Law Offices of Albert Goodwin at 718-509-9774.