Annual Trustee Commissions
Trustees in New York receive annual commissions based on the value of the trust’s principal, with specific payout rates as follows:
- $10.50 per $1,000 of the first $400,000 of the principal
- $4.50 per $1,000 of the next $600,000 of the principal
- $3.00 per $1,000 for the remaining principal
Additionally, trustees get 1% of payouts made.
These rates are established by New York’s Surrogate’s Court Procedure Act (SCPA) § 2309. The purpose is to ensure trustees are fairly compensated for their time and effort while ensuring that the trust’s assets are well-managed and preserved.
Real Property Management:
- For real property held by a trust where a trustee is required to collect rents and manage the property, the commission is calculated based on the net amount of rents collected, not the gross amount. Additionally, trustees are entitled to an additional commission of 6% of the gross rents collected for their services related to managing real property, but only one additional commission is allowed, regardless of the number of trustees.
The Impact of Multiple Trustees
When more than one trustee is appointed, the calculation and allocation of trustee fees become a bit more complex.
Multiple Trustee Commissions:
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If the value of the trust’s principal is $400,000 or more, each trustee is entitled to full compensation unless there are more than 3 trustees. In cases where there are more than 3 trustees, the full compensation of 3 trustees must be apportioned among them according to services rendered, or in accordance with a written agreement among the trustees. This means that, generally, up to 3 trustees can each receive full commissions based on the trust’s value.
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If the value of the trust’s principal is $100,000 or more but less than $400,000, each of the 2 trustees is entitled to full compensation. If there are more than 2 trustees, the compensation must be apportioned, unless otherwise agreed in writing, so that no more than 2 full commissions are allowed.
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If the value is less than $100,000, the full compensation allowed to a sole trustee must be apportioned among the trustees according to their services rendered.
Trustees can also reach an agreement in writing to divide the commissions in a manner different from the statutory default, provided that no trustee receives more than one full commission.
Trustee Compensation Calculator
To help trustees calculate their compensation, including situations where multiple trustees are involved, you can use the calculator below:
Trustee Compensation Calculator
If you are unsure how trustee fees should be calculated in your case, or you need guidance on splitting fees between trustees, seeking professional legal advice can help clarify your responsibilities and ensure a smooth administration process. For more assistance or inquiries about trustee fees in New York, feel free to reach out to our firm. We can help guide you through the complexities of trust administration and compensation.