Are successor trustees paid for their services in distributing the assets and terminating the trust?
Rarely. Not only does the operation take just a few days, it should also be remembered that if the successor trustee(s) is also the beneficiary(s), the payment is simply deducted from his/her inheritance! If the successor trustee accepts money from the trust in payment for services rendered, it must be reported as income on his/her 1040 income tax form. If the successor trustee carries out such duties gratis, the money will still be received but rather as an inheritance on which there is no tax. 11: Under what conditions should a bank or investment firm be appointed as trustee or successor trustee? Answer: Corporate trustees charge large fees to manage a trust. Yet there is no more to managing the affairs of a family trust than there is to managing an estate held in private ownership. Banks often offer the enticement of free financial advise to lure the trust maker. However, in this day and age free financial advice knocks at almost everyone’s door three times a week, usually from some
