Arizona Trustee

Trustee: a person or persons designated by a trust document to hold and manage the property in the trust. Beneficiary: a person or entity for whom the trust was established, most often the trustor, a child or other relative of the trustor, or a charitable organization.

While there is a general power to pay a trustee for providing services, there is no such general power to pay a trustee for carrying out trustee duties. Charities cannot do this unless they have a suitable authority, either in the charity's governing document, or one provided by the commission or the court.

An all-in fee will start between 1% and 2%, and usually covers the trust's investment manager, fiduciary and trust administration, and record-keeping and disbursements, but typically not asset-management fees. So, you might pay $30,000 to $50,000 a year on a $3 million trust.

Generally, the individual that develops the trust appoints the trustees. You can have up to four trustees. Many grantors appoint their executors to also act as trustees. Similar to an executor, you can request professionals to act as trustees, such as an accountant or lawyer.

1. An association or corporation doing business under the laws of this state as a bank, trust company, savings and loan association, credit union, insurance company, escrow agent or consumer lender. 2. A person who is a member of the state bar of Arizona.

Most corporate Trustees will receive between 1% to 2%of the Trust assets. For example, a Trust that is valued at $10 million, will pay $100,000 to $200,000 annually as Trustee fees. This is routine in the industry and accepted practice in the view of most California courts.

Some states have laws governing who may or may not serve as a trustee in a deed of trust. Generally, the trustee must be an attorney, title insurance company, trust company, bank, savings and loan, credit union, or other company specifically authorized by law to serve as a trustee.

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.

Trustees' fees A trustee's fee is the amount the trust pays to compensate the trustee for his or her time. There is no set trustee's fee. You can choose to base it on a small percentage of the market value of the assets plus a percentage of the income earned by the trust.