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One Co-Trustee is charging fees. Is he supposed to be?

Colorado Springs, CO |

I recently received an inheritance. It is set up in 3 accounts: an inherited IRA, a GST exempt and a GST Nonexempt account. My brother, myself and my CPA are listed as CoTrustees. My CPA is also listed as Successor Trustee. My CPA is charging fees to the 2 GST accounts, but not to the IRA account. He is charging one account $250.00 quarterly and the other account $650.00 quarterly.
Is he supposed to be charging these accounts while I’m still an active Trustee? Should I be getting paid fees too? Are these fee amounts reasonable?

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Attorney answers 2

Best Answer

Is he charging for accounting services or for services rendered as a trustee? Usually, the trust states the fees to be paid and sometimes trusts provide for fees being paid only to non-related parties. So you must check the document.
Not knowing what these fees are for or the size of the trust, It would seem that the fees being charged are reasonable and minimal in amount.
You may be entitled to a fee ( or a "commission") for your services as trustee, but you have to weigh taking a fee that is subject to income tax versus ultimately getting the trust assets as beneficiary that would not be taxable.
In any event, you need to speak with a Colorado attorney, experienced in estate matters.

Hope this helps.

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I practice in Washington and you need a lawyer in Colorado. Generally speaking the terms of the trust will govern the fees, they may be optional or forbidden you will need to read the terms. The professonal work of a CPA is usually worthwhile.

Good Luck

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