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Trustee Compensation Agreement
"I need a Trustee Compensation Agreement for a professional corporate trustee who will manage our family trust from March 2025, with performance-based incentives and provisions for additional professional accounting services."
1. Parties: Identification of the trust, existing trustees or trust administrator appointing the trustee, and the trustee being appointed
2. Background: Context of the appointment and the need for the compensation agreement
3. Definitions: Key terms used throughout the agreement, including types of services, compensation categories, and relevant trust terminology
4. Appointment and Term: Confirmation of the trustee's appointment and duration of the role
5. Duties and Responsibilities: Outline of the trustee's core responsibilities and scope of services
6. Compensation Structure: Details of the basic compensation, including base fees, payment intervals, and calculation methods
7. Payment Terms: Timing and method of payment, including invoicing requirements and payment procedures
8. Expenses and Reimbursements: Guidelines for claiming legitimate expenses incurred in trust administration
9. Reporting Requirements: Trustee's obligations regarding financial reporting and documentation of services
10. Termination: Conditions and procedures for terminating the compensation agreement
11. General Provisions: Standard clauses including governing law, amendments, and notices
1. Performance Incentives: Additional compensation based on trust performance or specific achievements, used when the trust wants to align trustee compensation with trust success
2. Multiple Trustee Provisions: Specific provisions for dividing compensation among multiple trustees, needed when there is more than one trustee
3. Professional Services: Provisions for additional compensation for professional services beyond standard trustee duties, relevant for trustees with professional qualifications
4. Tax Provisions: Detailed tax handling procedures, particularly important for complex trusts or international trustees
5. Conflict Resolution: Specific procedures for resolving disputes about compensation, recommended for larger trusts or complex arrangements
6. Confidentiality: Detailed confidentiality obligations, particularly important for trusts with sensitive or proprietary information
7. Insurance Requirements: Specifications for professional indemnity insurance, relevant for professional trustees or high-value trusts
1. Schedule A - Fee Schedule: Detailed breakdown of all fees, rates, and calculation methods
2. Schedule B - Scope of Services: Comprehensive list of services covered under the basic compensation structure
3. Schedule C - Expense Policy: Detailed policy on reimbursable expenses and claiming procedures
4. Schedule D - Performance Metrics: Metrics and calculations for any performance-based compensation
5. Appendix 1 - Trust Deed Extract: Relevant extracts from the trust deed relating to trustee compensation
6. Appendix 2 - Required Forms: Standard forms for expense claims, invoicing, and reporting
Authors
Financial Services
Wealth Management
Legal Services
Real Estate
Non-Profit and Charitable Organizations
Family Office Services
Corporate Services
Estate Planning
Investment Management
Education (for educational trusts)
Healthcare (for medical benefit trusts)
Legal
Compliance
Trust Administration
Wealth Management
Financial Operations
Risk Management
Corporate Services
Fiduciary Services
Document Management
Client Services
Trust Administrator
Corporate Trustee
Legal Counsel
Trust Manager
Compliance Officer
Financial Manager
Estate Planner
Wealth Manager
Trust Operations Manager
Fiduciary Services Director
Risk Manager
Trust Account Manager
Company Secretary
Professional Trustee
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