Examples of Trusts Commissions

Executor’s Commissions

The decedent passed away with the following assets titled in her sole name:

House valued at $350,000
Bank Accounts valued at $50,000
Stock Accounts valued at $100,000

Total Assets: $500,000

The Executor’s commissions would be calculated as follows:

5% of the first $100,000 ($100,000 x .05) $5,000

4% of the next $200,000 ($200,000 x .04) $8,000

3% of the next $700,000 ($200,000 x .03) $6,000

Total : $19,000 total commission payable

Trustee’s Commissions

Let’s say the same $500,000 in assets listed above were placed in an irrevocable trust by the grantor on January 1, 2012. The grantor of the trust passed away on January 1, 2013, and the assets were distributed on December 31, 2013.

The Trustee would be entitled to annual trustee’s commissions for 2012 and 2013, calculated as follows:

1.05% of the first $400,000 ($400,000 x .0105) = $4,200

.45% of the next $600,000 ($100,000 x .0045) = $450

Total : $4,650 each year

For 2012 and 2013, the trustee would be entitled to commissions of $9,300

Upon the termination of the trust, the trustee would also be entitled to 1% of principal, calculated as follows:

■ $500,000 x .01 $5,000 one-time commission, upon the termination of the trust

The trustee would be entitled to total commissions in the amount of $5,000 + $9,300= $14,300