Monday, 23 March 2015

For an revocable living trust in California that does not state specifically how much the trustee can receive for their time and mileage whe...

Question

For an revocable living trust in California that does not state specifically how much the trustee can receive for their time and mileage when settling the estate, what is a general rule of thumb to charge the estate for time and mileage?



Answer

The trustee is entitled to reimbursement of expenses and a reasonable fee. The notion of reasonableness is based on a number of factors, such as how difficult the work is and how experienced the trustee is.

Contra Costa county has a local rule of court, which says that a fee of $40/hour is presumptively reasonable for non-professional trustees. Other courts have different rules. Mileage can probably be charged at the IRS reimbursement rate.



Answer

Typically if a trustee take a fee of 1.5% of the gross estate, or less, then it's unlikely you'll find a judge decreeing that the fee is too much.



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