Hi. My 4 sisters and I are successor trustees fur my parents trusts- my parents are both not able to take care of their affairs and are living in assisted lu in homes, next door to each other.
The trusts do not address specific compensation but allow reasonable. The combined trust value is under 10 million. There are many beneficiaries- inc my 4 kids, their 15 cousins, etc.
3 of us delegated day to day trust duties to 2,of our sisters. They billed 140,000 fir 6 months last year (so 280,000/yr rate. Over 1,000/day week day rate).
Many others are also paid to help manage my parents various properties, out of my parents trusts.
Va code guideline says 62,500 is about what should be reasonable compensation for this. So, my sisters are charging 220,000 more- and there is a history of these sisters billing my parents A LOT (several hundred thousand) prior to trust succession, paying out, with no one else knowing this (well after dementia diagnosis) . Is 280,000/year ok for trust valued 6-8 million?
Sounds high but a lawyer wouldn't be able to know for sure until hired to dig into the case.
On the face of it, it sounds as though the amounts would not be considered as reasonable. Your sisters should be providing you with an accounting of their expenses. I would have to review the trust terms and their actions to give you a better idea of whether you have a case against them. You stated that five of you are co-trustees. You could remove the power you gave to your two sisters. You need to contact an estate litigation firm for guidance on this matter.
My answer is for general information only and does not imply that any attorney-client relationship has been created.
It may depend on the scope of their duties and how actively engaged they are in the management of trust properties. It certainly seems high, but it's possible that if they are actively engaging numerous other managers or other persons in day-to-day transactions and affairs on the different properties, it's plausible that the compensation is appropriate.
But to assess that and your other minimally mentioned issues ("improper transfers worth 100s+" you will need to speak with an estate/trust litigation attorney.
This answer provides general advice and should not be understood as to create an attorney-client relationship between the questioner and the responding attorney.
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