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

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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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Factors to Consider When Setting Up an Enterprise

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Setting up an efficient enterprise does not come by chance. It involves a lot of input or factors. Proper consideration and planning of these factors can help one to be able to set up a very industrious enterprise. Some of the factors that merit serious consideration are discussed below.

1. Capital: This refers to the funds or money available for the establishment of the enterprise. The entrepreneur should have a start-up capital as well as working capital to help the enterprise to stand on its feet. The start-up capital is the capital that is used for the purchase of tools, equipment, materials and machinery to start the business operation.

On the other hand, the working capital is the capital used in the day-to-day running of the business. It caters for the salary of workers, transportation costs, and purchase of new materials for productions, operation costs, maintenance of machinery and all the other things that ensures the smooth flow of business activities. The entrepreneur should have a sound financial bedrock to enable him set up and run the enterprise.

2. Room or Space for Workshop: The entrepreneur should also search for an appropriate room or space for the workshop. The space should be large enough to accommodate all the equipment, tools and machinery as well as the entire work force. It should also allow free movement from one area of the workshop to the other.

Moreover, the room should be well ventilated and well lit to make the execution of business activities very smooth. The space should be located at a good spot where tools, materials and machinery can be well stored without any hazards internally or externally.

3. Skilled Labour: The working force or labour of the enterprise refers to the people who are employed to work in the enterprise. The appointment of these people should be strictly based on their technical expertise or skill that can be utilized for the success of the enterprise.

The entrepreneur should seriously consider this factor otherwise he will end up paying people who do not in any way contribute to the generation of funds for the enterprise. Qualified personnel should be employed and they must possess excellent traits that can positively affect the business activity. Never should persons employed to work in the enterprise be based on sympathy or family grounds. Doing this would eventually collapse the business enterprise.

4. Availability of raw materials: The entrepreneur should ensure that he has a sustained supplier of the raw materials for his enterprise. He should have a large stock of these raw materials that can sustain him for a fairly long period of time. This would not cause the business activity to cease or halt when the raw materials are very scarce. He must have reliable suppliers of his raw materials. If possible he can even initiate the production of his own raw materials.

5. Transport and Communication: The entrepreneur should consider the means of conveying his products from the enterprise to consumers and shops. The roads from and to the workshop should be well constructed or accessible to ensure easy transportation of products. Means of conveyance of products such as vehicles can be made available to aid in transportation.

Communication lines must be readily accessible to prospective clients who might want to call to propose business transactions. Telephones must be installed in the enterprise as well as in all its departments. This would ensure the smooth flow of information, enhancing productivity.

6. Nearness to market or customers: The location of the enterprise should be near to prospective buyers or customers. It should be closer to the market. This would promote and maximize the sale of the products.

7. Selecting a Business name: The entrepreneur should select an appropriate business name for the enterprise. It should be attractive, easy to remember and must have a direct bearing or full description of what the enterprise produces. The business name should be unique and original.

8. Registration requirements: The one who desires to set up an enterprise should endeavor to meet all the registration requirements. For example, he has to register the business at the Business Registry Department. He has to see to it that the enterprise together with all its resources is insured.

He must also pay all his taxes and have the name of his business in all the legal documents and books of the country. This would spare him of any future business close down.

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What to Expect From Therapy

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If you are entering therapy for the first time you may be feeling a little anxious. After all, you don’t really know what to expect. You may have been in therapy before, but dropped out early, because you didn’t know what to expect. Many people enter therapy hoping to find quick and easy solutions to their difficulties.

That expectation is usually too high. So, what can you expect from therapy?

You can expect to feel a little awkward at first. It takes time to establish a trusting relationship with a therapist. After a session or two you should be feeling more comfortable.

Be prepared to answer quite a few questions. Remember the therapist must gather information to fully understand you and your situation. One question you will hear a lot is, “And how do you feel about that?” So, be prepared to talk about your feelings.

Don’t be surprised if you are asked to complete homework assignments or read books. Therapy is less effective if you only concentrate on your issues and concerns once a week for an hour. Doing the specific activities assigned by the therapist speeds up the time it takes to work out your problems.

Therapy can be very painful. Expect to be emotional in session. It is normal to be tearful and/or angry. You will be talking about situations and people that have hurt you. You may need to talk about your past. You might be discussing things that you are ashamed of. This is an emotionally charged process.

Therapy is hard work. It requires time and patience. You might be tempted to quit right before any real change or breakthroughs happen. We are all naturally resistant to change.

Others may resist your changes and growth as well. Don’t be discouraged by this, they need time to adjust. As you become more healthy and balanced you too may need time to adjust. This may be uncomfortable at first as it can feel very unfamiliar.

If you stick to your commitment to therapy it will change your life. Be prepared to feel some loss. It is a normal part of change.

Therapy is a journey. Expect it to be like any other journey with roads that go up, down, and twist. There will be some smooth sailing and some rough seas. When you work hard and stick to the course, therapy can get you to your destination.

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How to

Divine Soul Purpose Signal

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Divine Signals and Messages

Our soul is different from spirit, and often confused. We are given divine signals and messages. Our spirit is the connection to our higher source, where answers will be heard with actions to be taken. Our soul is the expression of how we will live in this world, because we are a body.

Living with the soul is a natural way of living in the world. Your soul is being expressed through your everyday experiences. So today you can start to become the person you are most seeking, making you life more fulfilling, living with soul will help you to become more alive and purposeful.

When the search for spiritual connection and it works well, it brings great relief. You want this experience to last forever. All it takes it a few minutes a day to remember. Your soul will show up more as it becomes better connected to higher source.

Connect to your Higher Source

Give yourself a few minutes and try this exercise to connect to your higher source for answers of your soul purpose


I recognise there is one power and presence in the universe. God the good, omnipotent. I am one with this power and presence of God. Therefore, I claim my perfect divine signal and divine message to come to me now with divine order and timing.

I call upon the Holy Father to give me a divine signal and message. Release all seeming blockages that have prevented me from receiving my perfect divine signal and message now. Release and let go f all ideas that I am separate from God or that God is out of reach. In doing so, I accept and welcome with open arms my perfect divine contact with God now. Thank you, God, and SO IT IS.

Once you make contact with your higher source take a few deep breaths

I now let go of the outer environment and go deeper to the physical level

Take three deep breaths

I now relax and become aware of my conscious mind

Take three deep breaths

I now relax to the level of my subconscious mind

Take three deep breaths

Connect with your higher source

Ask for the signal

Take three deep breaths

I call upon Holy Wisdom to give me your divine signal now. Feed it stronger feed it stronger feed it stronger

Take a few deep breaths

Let go and Let God

Recognise and verify my signal

Once recognised a clear signal than say aloud:

Holy Wisdom is the signal that I have identified as being my signal? Then please feed it stronger to me now?

Take three deep breaths

Ask for a message and say aloud


“Holy Wisdom please tell me (ask the questions you are most seeking answers to) now”

IT is critical to ASK for direction of your soul purpose.

  • Why am I holding back?
  • What is it that I need to do?
  • When do you show up in my life?
  • Is there a message that I need to understand?
  • When will I live my truth?
  • It there anything else you would like to say?
  • What would you like for me to do?
  • How will this look like in my life?
  • Is there anything else you would like to say?

Let go and let be

Take another deep breath

Do nothing and less than nothing. Do not try to get a message have a neutral attitude and give up completely.

Give Thanks and Gratitude

https://purposepassionandpossibilities.com/soul-coaching-mentoring/

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