The estate is in California.My guess 1.5-3 % of the Total estate worth correct?
Is the Trustee Fee taxable? Anybody knows how much would be the tax on it? Is it a 1099?
2007-04-02 11:47:32 · 2 answers · asked by melinda1351 1 in Business & Finance ➔ Taxes ➔ United States
It is actually significant amount of work. This is our uncle in his eighties, he has advanced Alzheimer' s, so we are living with him. Our work involves all financial matters, shopping, cooking, cleaning, working around the house, absolutely everything.
2007-04-02 11:59:05 · update #1
That depends upon how much work is involved in maintaining the trust. Any fee that the trustee charges is taxable income to the trustee.
The personal support services are NOT part of the trustee's fee! Those are expenses charged against the trust but are not a management fee.
You should probably consult with a CPA or tax attorney who specializes in trusts. This is not a simple undertaking and you want to make sure that you do it properly. Their fee would be paid by the trust. You may also wish to nominate a substitute trustee to avoid any possible conflict of interest.
2007-04-02 11:51:46 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 0⤋
The trustee fee would be taxed the same as any other income to the trustee. Based on your Additional Information, the person is not just a trustee, but also a caregiver. Those are actually distinct functions.
3% of $1,250,000 is $37,500 if that helps any.
EDIT: bostonianinmo's answer above is better than mine.
2007-04-02 12:16:24 · answer #2 · answered by STEVEN F 7 · 3⤊ 0⤋