Successor trustee fees are either dictated by the terms of the trust agreement or by state law. These laws usually provide guidelines as to what is considered a “reasonable fee” based on how complex the trust is, how much time it will take to administer and settle and whether the trustmaker’s estate is subject to estate taxes. The laws also take into consideration whether the validity of the trust or the choice of the successor trustee is likely to be or has been challenged by the trust beneficiaries. If the grantor’s estate is subject to estate taxes at the state or federal level, accounting fees may also include the preparation and filing of these tax returns. Although the federal estate tax exemption for an individual is $12.06 million as of 2022, state thresholds are often considerably less. Some estates that would not owe taxes or require a return at the federal level may still have to deal with this expense at the state level. Appraisal fees for personal property can range anywhere from a few hundred to a few thousand dollars, while business valuation fees will typically run several thousand dollars.
