[WSBAPT] Trustee Compensation

[Philip N. Jones]

One would need to review the trust in order to give you an answer you can rely on, but your arithmetic appears to be correct.  Assuming there are four children and they receive the residue, which appears to be after the reduction for the 16.66% fee.
Of course, the trustee will need to report the fee as compensation income for income tax purposes.
Nice work if you can get it.
Phil Jones
Portland, OR


Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Brent Williams-Ruth
Sent: Tuesday, December 15, 2020 5:09 PM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com>
Subject: [WSBAPT] Trustee Compensation

Greetings List -

Conducting a review of a Trust.  Distribution is equal shares to the children. But then as I got to page 11 and read through the compensation it states:

The Trustee shall be entitled to receive, out of the income and principal of the trust fund, Sixteen and Two-Thirds Percent (16.66%) of the Trust Estate.....

There is revisionary language if the Trustee is a corporate trustee.

Just want to make sure that I am reading this correctly - take 16.66 percent off the top of the trust, pay the Trustee, then divide the remainder into 25% shares and pay out?

I don't know why this is causing my brain to fritz - but would appreciate validation or correction of my theory!

Thank you,
Brent



Brent Williams-Ruth (preferred pronoun: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

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