Investor · Everett, WA · Member since 2015 · 61 posts · 36 votes
So, in case my spouse and I pass as we have young kids, when using trust services to manage assets, real estate primarily, is it better to do flat fee for 1.5% or a trust services company that charges by the hour with a published fee schedule? Thanks!
Also, it may be hard to anticipate whether the trustee will hold on to your assets as real estate or sell it to invest in another asset class. The trustee has to take into account the needs of all the beneficiaries, as well as the cost of managing the real estate vis a vis stocks / bonds and other asset classes.
Consult your estate planning attorney about all of this (and the prior post) as I am not licensed in your state.
Good day. It is probably best to have a trusted and competent person you know be your trustee. That trustee can hire experts as needed. The comparison of professionals is difficult. It depends on amount of assets under management. In either case they should have very clear state directions so the fees do not get too high or the administration take too long. Flat fee might be better for a longer term trust. I hope that helps Lee.
The thing about trustees is they change their fees over time. It may be hard to anticipate now what their fees will be like at the time both you and your wife pass away. One way to work around this is to have a provision in your trust that allows for the trustee to be changed if necessary.
Also, it may be hard to anticipate whether the trustee will hold on to your assets as real estate or sell it to invest in another asset class. The trustee has to take into account the needs of all the beneficiaries, as well as the cost of managing the real estate vis a vis stocks / bonds and other asset classes.
Consult your estate planning attorney about all of this (and the prior post) as I am not licensed in your state.