How are trustees compensated?

Corporate Trustees are at the top of the group, and they usually are paid a percentage of the Trust assets as Trustee’s fees. 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.

What is the difference between a trust and a settlement?

Settlements may involve written agreements or deeds. Trusts are a common type but a settlement can also be a disposition, covenant or agreement. However, there doesn’t have to be a deed and so settlements can also include an unwritten arrangement or even a straightforward gift or transfer of property.

Could a family settlement asset trust be a solution for You?

Could a Family Settlement Asset Trust be a solution for you? A Family Settlement Asset Trust (FSAT) is a discretionary trust usually coupled with a life interest used to protect assets which may be property, cash, bonds and so on.

Who is considered for a settlement protection trust?

A professional trustee should always be considered for a Settlement Protection Trust. The professional trustee has expertise in investment management, taxation, and navigating the system to support the injured party. Courts rarely require a bond for a professional trustee.

What happens if I choose a family member to be my trustee?

A trustee’s power and control over your assets and his/her power to make distributions can cause resentment among beneficiaries. Hurt feelings may develop in those family members not chosen, who may feel dismissed or feel that the settlor believes them to be unworthy of trust and respect.

What are the qualifications to be a trustee?

The legal qualifications for a trustee are simple: he/she must be over the age of 18 and legally competent to manage his/her own affairs. The practical qualifications, however, are much more complicated. A trustee must: Have the skill set to properly administer the trust and meet the needs of the beneficiaries. Possess and exercise good judgment.

What does it take to set up a family trust?

Setting up a family trust requires individuals to fund the trust by transferring ownership of assets. This is accomplished by acquiring new property titles for real estate and vehicles and changing names on bank accounts and financial assets. The person that sets up the trust is referred to as the Grantor.