Trustee Fees: How Much is Enough and How Much is Too Much?

I am often amused by the ads and offers I see concerning
living trusts.

Almost always, one of the big sales pitches is how a living
trust will save th*usands of doll*rs in "nasty" probate fees.

This leads the consumer to believe that you pay for probate,
but living trusts are "fr*e." (that is, after you've paid the
promoter to set one up for you).

Not so.

Here's an email I received from one of my subscribers
(she has given me permission to discuss her question in this
article):

Hi Phil,
My mom passed away recently and my sister is 1st trustee.
She claims she gets 10% of my mom's estate as 1st trustee.
Is this true? What is the normal fee for 1st trustee?

Great question. Often one of the biggest, if not the biggest,
areas of dispute between children or heirs after a death occurs.

What is a trustee fee? How is it calculated? Are there other
fees?

If you have a trust and don't know the answer to these questions,
I think the proper thought is "Uh-ohh!"

OK, let's have a quick review of trustee fees.

First let's make a distinction between the times a trustee may
be called upon to act.

Remember, one of the best uses of a trust is to manage the
assets of someone who is incapacitated. My best friend and
his sister have been managing their mother's affairs (as
trustees) for the last 10 years. Mom is 95, in decent physical
health, but has advanced Alzheimer's).

Let's save the discussion of trustees fees charged for
managing an incompetent's estate for a future article. Let's
get down to answering the above question.

Here it is again:

Hi Phil,
My mom passed away recently and my sister is 1st trustee.
She claims she gets 10% of my mom's estate as 1st trustee.
Is this true? What is the normal fee for 1st trustee?

Basically, the question is "How much can a trustee charge to
handle an estate after a death?"

How do we answer this?

First, we have to look at the trust instrument.

Most competently drawn trust instruments will have a section
that deals with trustee fees.

The better ones are fairly specific and make a distinction
between acting as trustee while the beneficiary is alive, but
incompetent, and acting as trustee after a death has occurred
(similar actions to what an executor performs through a probate).

So, first, we look to the trust instrument. Often it will specify
a fee. Sometimes it will say .75% to 1.25% of the total value
of the assets being managed and transferred (since this is the
typical fee charged by the professional trust companies run by
many banks).

In fact, let's see what California law tells us about trustee fees
(every state will have a statute, go to your county law library
and ask the law librarian to help you look it up).

In California, the law of living trusts is contained in the
Probate Code. Here is what Probate Code Sections 15680-82 tells us:

15680. (a) Subject to subdivision (b), if the trust instrument
provides for the trustee's compensation, the trustee is entitled
to be compensated in accordance with the trust instrument.

(b) Upon proper showing, the court may fix or allow greater
or lesser compensation than could be allowed under the terms of the
trust in any of the following circumstances:

(1) Where the duties of the trustee are substantially
different from those contemplated when the trust was created.

(2) Where the compensation in accordance with the terms
of the trust would be inequitable or unreasonably low or high.

(3) In extraordinary circumstances calling for equitable
relief.

(c) An order fixing or allowing greater or lesser compensation
under subdivision (b) applies only prospectively to actions taken in
administration of the trust after the order is made.

15681. If the trust instrument does not specify the trustee's
compensation, the trustee is entitled to reasonable compensation
under the circumstances.

So to answer the question, we have to find out what the trust
instrument says. If it is silent, then Section 15681 tells us the
compensation is to be "reasonable compensation under the
circumstances."

What is reasonable under the circumstances? If it were me,
I would gather up the brochures of the various bank trust
departments in the area to determine their rates. Where I
live, the fee is .75% to 1.20%, depending on the size of the
trust and the type of assets. The minimum is $5,000.

So, it looks like the answer to the question is that if the
trust instrument says the 1st trustee is entitled to 10%
compensation, then she may be. However, if it doesn't then the
amount to be charged must be reasonable.

And, even if the trust instrument said 10%, I would seriously
consider asking a court to change the compensation per
15680 (b) (2) that allows the court to change compensation
"Where the compensation in accordance with the terms of the trust
would be inequitable or unreasonably low or high."

This article needs to be continued since we haven't even
touched on the big m*ney m*ker for trustees and attorneys,
"extraordinary fees."

Good luck and until next time,

Phil Craig

P.S. Feel free to forward this on to any friends.

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© Phil Craig, All Rights Reserved

http://www.LivingTrustSecrets.com

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Criminal Records Search Through Public Police Records

We tend to just passively enjoy the conveniences and services rendered by the Police. Actually, we can greatly benefit from their Public Police Records if we were more proactive. It's easy to search public police records and if we do that any time we are uneasy about someone, there's no doubt that a great many crooks would have been spotted long before they could strike.

Police are renowned for their record keeping. It is standard police procedure to put into records all interaction with the public and it is estimated that 30% of all Americans will have some form of police records in their lifetime. Public Police Records are not limited to just criminal violations either. They include administrative and other civil matters such as address change, firearms permit, household accidents and so forth.

Public Police Records are governed by state laws. Hence, there are variations in the way they are administered. The general practice though is that the direct ownership of this function comes under the respective police departments. That being said, these records are uploaded onto the respective central repositories of each of the states.

Being public records, anyone has the right to access, view and make use of anybody's Public Police Records as long as rules and regulations are observed. They are obtainable directly from the local police department if the exact residence of the subject is known. If not, they can still be requested from other state agencies responsible and authorized for it.

To some extent, Public Police Records are already in routine use, at least in official circles. It is commonly used in large corporations in appraising and screening both potential and existing employees. It's also a standard procedure with many voluntary welfare organizations to run through Criminal Records Search in the assessment of their volunteers. Without doubt, they can be just as handy in private use.

Providing Public Police Records is a public service and is usually granted free of charge. Administration fees are charged at some public offices for this purpose but the amounts are typically nominal. Free Public Police Records can be requested by mail, walk-in, telephone, fax or most popularly nowadays, online over the internet from the various government offices or even some private websites offering it as a fringe service.

The problem with Free Public Police Records is that they normally entail queuing and waiting time. That's why the paid-version from commercial records providers is popular when time is of the essence and plug-and-play readiness of the records is sought. The information industry is fiercely competitive so with a little shopping, it's not difficult to find good value for money.

Search For Free Criminal Arrest Records to Prevent Crimes

It's not enough to depend your personal and business life on those resumes and applications that were assumed to be true and accurate. For you to have that reliable source of information to check on the honesty of a person, it is recommended that you search for those arrest records that are available nowadays. Such process will give you the peace of mind that you need.

One of those searchable documents this time is Oklahoma Arrest Records. These records can be easily found online. To be able to obtain such file, you may choose to use either the free search or one that cost a minimal price. It has been said that conducting the search through the fee-based support is preferable since that will provide you with a professionally-done and most accurate result. The records that you will also get from them came from various databases; therefore, you'll really be satisfied with the outcome of your search.

The most common things that are associated with searching Arrest Records Oklahoma are the status of sex offenders, those known aliases, arrests and any conviction records from any other case. Because of the increase in crime rate based on statistics, filed documents in Oklahoma are sometimes lost while others were not even recorded yet for a long span of time. However, with those professional services online, you will surely obtain the desired data once it is recorded in the court.

Another advantage when you search for these records through those commercial record providers is that they keep every confidential thing that is related to the search. Such act is to ensure that you're safe from those people that you're searching for who might cause you any harm once they learn that you're searching for information about them. These arrest records usually reveal details such as what kind of offense was done, when was that done, and what were the outcome of those crimes.

Not everyone who wants to search for these criminal records have enough time to perform all the things that should be done. Searching may sometimes require you with a longer time. With the help of those professional service providers, you don't have to worry about that concern with time anymore. These providers offer tons of resources that you can use for searching as well as databases that contain your desired data. Therefore, obtaining reports for Oklahoma Criminal Records will only consume few minutes of your valuable time.

The bottom line why people search for these arrest records is to ensure the security of one's self, the family, and the business too. Therefore, for you to achieve such goal, you should not just trust those search providers that are not tested to be of much help. Another thing is to avoid being victimize by scams and illegal practices that surround us now. Trust only those sites that will truly help you with your decision making after the search.

Free Outstanding Warrant Search

A free outstanding warrant search is a great service that most states now provide its residents. The search allows you to search and see if someone has an outstanding warrant that is filed with the court. You enter the persons name that you wish to investigate and the web site will tell you whether or not the person has a warrant filed against them.

Protecting yourself and your family is very important because you never know who might have an warrant. The government passed a law call the Freedom of Information Act which made the government divulge information related to public safety to the public. It is important for the government to protect its citizens from people that might be dangerous.

It is important to know if people have warrants filed against them. For instance, when doing a background check on a baby sitter or nanny you need to know who will be watching your children. You can check out the person who applied for the position by visiting a web site that does a free outstanding warrant search.

If while using a free warrant service you discover that someone has an warrant out for their arrest, please do not alert the person in question. People who have avoided correcting their outstanding warrants do not want to be turned in to the proper authorities. This creates a very dangerous situation.

You need to contact the proper authorities in your state and keep the person in question away from your family because they are criminals and can pose serious physical harm to you and your other family members. You should not tell other people outside of your family because if the person finds out that they are going to be turned in to law enforcement officers then they are likely to bolt or disappear and leave the state which is not a good thing.

Law enforcement officers need the help of the public to locate those people who have outstanding warrants filed. Never try to apprehend a person who has an outstanding warrant filed against them.

Hopefully these tips about using a free warrant search will help you keep yourself and your family safe.