If you set up a trust as part of your rebate plan, you can get advice not to use a family member as an agent or retirement agent, as this could be overwhelming for them. Others may suggest using a family member to save money. However, others propose to use a corporation, a trust company or a law firm as agents. For a variety of reasons, there are times when an agent does not collect an annual fee or even address the subject. Sometimes the agent is a family member or family friend and does not consider taking a tax because he or she does not need the money. But if circumstances change, the agent can start taking a tax, and the beneficiaries can then complain. Sometimes an agent may try to take a tax for his or her resignation or simply decide that he or she should have taken a tax in the past, because the beneficiary now challenges his or her management of the trust. Or maybe the trust lacked cash in the past and there was no money to take fees. Whatever the reason, since there is no clear agreement, given that the levy is levied, it is unlikely that a levy will be good for the beneficiaries.
There are many pitfalls faced by those who serve as agents. This article is limited depending on the design to the extent. It is intended to raise public awareness of fiduciary remuneration and to make it clear that best practices require an agent to be transparent about the remuneration to be paid and to do so in writing. Directors who do not employ qualified specialists in the management of the trust or who do not properly control conflicts of interest put themselves at great risk. Similarly, if they also serve as CPAs or counsels for the trust, they should be very careful about these services separately, in detail and reasonable. Conflicts of trust and trust are often linked to emotions and tenacity, making it particularly costly, tedious and avoiding something. A recent conceited decision by the New York Appellate Division illustrates this point (Estate of Witherill, 828 N.Y.S.2d (N.Y. App.
Div. 2007). Although he is an estate administrator who had served as the deceased`s financial advisor prior to his death, trust and risk issues also apply to directors. The court found that Witherill`s executor (1) overpaid for his services, (2) overpaid accountants and did not question their invoices, and (3) Merrill Lynch allowed real estate assets to be invested in an improper investment. It also found that his excessive costs and negligence in the excessive payment of accountants were acts for which he was personally responsible. Many states only seek “adequate compensation” without explaining what it is. However, if you want to use a trust company or other type of business, you may not want to manage the position of trust without a minimum payment guarantee. The law gives directors a right to compensation. The courts do not expect people to bear the burden of running a trust without being paid. Many states give an agent the right to “properly compensate.” But what is adequate compensation is sometimes left to the discretion of the courts.
Fair compensation is generally based on several factors, such as the . B: Fair and fair compensation for an agent takes into account several factors if the amount is not broken down in the trust agreement. Also, it simply means that you appoint a member of your family to manage the position of trust, not that you don`t have to pay for it. You can get legal proceedings for compensation if there is no payment agreement. Whoever you choose as a successor agent or agent, they will ask for payment for their services, even if they are family.
