Quick answer
In England and Wales, professional trustees may typically charge reasonable fees for their services, though unpaid trustees generally cannot be remunerated unless the trust deed explicitly permits it. There are no fixed statutory limits on trustee fees, but courts generally expect charges to be proportionate to the work undertaken and the trust’s value. Beneficiaries should scrutinise fees against industry benchmarks, which typically range from 0.5% to 1.5% of trust assets annually, though complex trusts may justify higher rates. Professional trustees must act in good faith and can be challenged if fees are deemed excessive or if they conflict with their duties under the Trustee Act 2000. From 6 April 2024, enhanced transparency requirements apply to trustee charging. This guide explains what constitutes reasonable professional trustee fees in 2026/27, how to challenge excessive charges, and the legal framework governing trustee remuneration.
Last reviewed: 24 May 2026 by the MP Estate Planning editorial team. Jurisdiction: England and Wales. Scotland and Northern Ireland have different probate and intestacy rules; the IHT thresholds are UK-wide.
When it comes to managing a trust, understanding the fees associated with trustee services is crucial. In the UK, the general rule is that trustees should not be paid for their services. However, there are exceptions, particularly for professional trustees who can be remunerated under certain circumstances.
For beneficiaries, it’s essential to comprehend what constitutes reasonable trustee charges to ensure that the trust’s assets are managed properly. We will explore the complexities of trustee fees and provide guidance on navigating these costs.
Key Takeaways
- Understanding the general rule and exceptions regarding trustee remuneration is vital.
- Beneficiaries should be aware of the implications of trustee fees on the trust’s assets.
- Professional guidance can help navigate the complexities of trustee charges.
- Reasonable fees are essential to ensure the trust is managed effectively.
- Clear understanding of trustee fees can help protect the trust’s assets.
Understanding Professional Trustee Fees in the UK
When it comes to managing trusts in the UK, understanding the fees associated with professional trustees is crucial. Trust management is a complex field that requires expertise and a deep understanding of legal and financial nuances.
What Is a Professional Trustee?
A professional trustee is an individual or organisation appointed to manage a trust, often due to their expertise. They are responsible for administering the trust according to its terms and acting in the best interests of the beneficiaries. “A professional trustee brings a level of expertise that can be invaluable in managing complex trusts,” as noted by industry experts.
Using a professional trustee can provide peace of mind, knowing that your trust is being managed by someone with the necessary skills and experience. This is particularly important for complex trusts or those with significant assets.
The Role of a Trustee
The role of a trustee involves a range of responsibilities, including:
- Managing trust assets
- Making distributions to beneficiaries
- Filing tax returns
- Ensuring compliance with trust law
As we can see, the role of a trustee is multifaceted and requires a high level of competence. Professional trustees are equipped to handle these responsibilities efficiently, ensuring that the trust is administered correctly.
Why Use a Professional Trustee?
There are several reasons why using a professional trustee may be beneficial. For instance, they can provide expertise in managing trust assets, help navigate complex legal requirements, and offer impartial decision-making. As a recent case highlighted, “using a professional trustee can mitigate risks associated with trust management.”
In conclusion, understanding the role and benefits of professional trustees is essential for effective trust management in the UK. By appreciating the value they bring, individuals can make informed decisions about their trust administration needs.
Factors Influencing Trustee Fees
Understanding the factors that affect trustee fees is crucial for effective trust management. When setting up a trust, it’s essential to consider the elements that can impact the costs associated with hiring a professional trustee.
Complexity of the Trust
The complexity of the trust is a significant factor in determining trustee fees. Trusts that involve intricate financial arrangements, multiple beneficiaries, or complex distribution rules require more time and expertise to manage. As a result, trustee fees comparison across different trusts can reveal that more complex trusts incur higher fees due to the increased level of service required.
For instance, a trust that includes assets such as businesses or properties in multiple locations may demand more extensive management and administrative efforts, thereby increasing costs. We recommend that beneficiaries assess the complexity of their trust to understand the potential fee implications.
The Size of the Trust Fund
The size of the trust fund is another critical factor influencing trustee fees. Larger trust funds typically require more extensive management, including investment strategies and asset protection measures. Consequently, the fees associated with managing a substantial trust fund can be higher. For a detailed guide on the costs associated with trust management, you can refer to our resource on the cost of closing a trust in the.
When evaluating professional trustee costs UK, it’s essential to consider how the size of the trust fund impacts these costs. Larger funds may benefit from economies of scale, but they also involve more complex financial management.
Geographical Location
Geographical location can also affect trustee fees, as the cost of living and operating a business varies significantly across different regions in the UK. Trustees operating in areas with a higher cost of living, such as London, may charge more for their services compared to those in other parts of the country.
Beneficiaries should consider the geographical location of their trustee when evaluating fees. It’s also worth noting that some trustees may offer competitive pricing regardless of their location, so it’s beneficial to compare services and fees.
Typical Fee Structures
In the UK, professional trustee fees are typically structured in one of three ways: hourly rates, flat fees, or a percentage of the trust assets. Understanding these fee structures is essential for trustees and beneficiaries to manage their expectations and make informed decisions.
Hourly Rates
Hourly rates are a common fee structure used by professional trustees. This approach involves charging a specific hourly rate for the work undertaken. The advantages of hourly rates include:
- Transparency: Clients know exactly what they are paying for.
- Flexibility: Fees are directly related to the work done.
However, hourly rates can be unpredictable, as the total cost depends on the amount of work required. According to a survey by a leading trust association, the average hourly rate for professional trustees in the UK ranges from £150 to £300 per hour.
Flat Fees
Flat fees involve charging a fixed fee for specific services or for the overall administration of the trust. This fee structure provides predictability and can be beneficial for trusts with straightforward administration needs.
The benefits of flat fees include:
- Certainty: Clients know the exact cost upfront.
- Simplicity: Easy to understand and manage.
However, flat fees might not be suitable for complex trusts that require more extensive work. As noted by a trust expert, “Flat fees are attractive for simple trusts, but they may not cover the additional work required for complex trusts.”
| Fee Structure | Advantages | Disadvantages |
|---|---|---|
| Hourly Rates | Transparency, Flexibility | Unpredictable total cost |
| Flat Fees | Certainty, Simplicity | May not cover complex work |
| Percentage of Assets | Aligns fees with trust size, Incentivizes performance | Can be costly for large trusts |
Percentage of Assets
Some professional trustees charge a fee based on a percentage of the trust assets under management. This fee structure aligns the trustee’s interests with those of the beneficiaries, as the trustee’s fee is directly related to the performance of the trust assets.
The advantages of this fee structure include:
- Alignment of interests: Trustees are incentivized to perform well.
- Scalability: Fees adjust according to the trust’s assets.
However, for large trusts, this fee structure can result in significant costs. As stated by a financial advisor, “While a percentage-based fee can align interests, it’s crucial to consider the overall cost and ensure it remains reasonable.”
When evaluating the appropriate fee structure, it’s essential to consider the specific needs of the trust, the complexity of the work involved, and the services required. By understanding the different fee structures available, trustees and beneficiaries can make informed decisions that best suit their situation.
Comparing Fees: Professional vs. DIY Trustees
When considering the management of a trust, one of the key decisions is whether to opt for professional trustee services or to manage it yourself. This decision significantly impacts the trust’s overall cost, efficiency, and compliance with legal requirements.
Cost of Professional Services
Professional trustees bring expertise and experience to trust management, but their services come at a cost. The fees for professional trustees can vary widely based on factors such as the complexity of the trust, the size of the trust fund, and the geographical location.
Here is a breakdown of typical costs associated with professional trustee services:
| Service | Typical Cost |
|---|---|
| Initial Setup | £500 – £2,000 |
| Ongoing Management | 0.5% – 1.5% of trust assets per annum |
| Additional Services | £100 – £500 per hour |
Risks of Managing Your Own Trust
Managing a trust yourself can seem cost-effective but exposes beneficiaries to significant risks, including legal and financial mismanagement. Without the proper expertise, individuals may inadvertently breach their fiduciary duties, leading to costly legal consequences.
Risks include:
- Legal non-compliance
- Financial mismanagement
- Potential for disputes among beneficiaries
Long-term Financial Implications
The long-term financial implications of choosing between professional and DIY trust management are significant. While professional trustees charge fees, their expertise can help avoid costly mistakes and ensure the trust is managed efficiently.
In conclusion, when deciding between professional trustee services and managing a trust yourself, it’s crucial to weigh the costs against the benefits, considering both the short-term and long-term implications for the trust’s financial health and legal compliance.
Market Rates for Professional Trustees in the UK
The cost of hiring a professional trustee in the UK can vary significantly based on several factors, including region and trustee type. Understanding these variations is crucial for assessing the reasonableness of fees.
Average Fees by Region
Professional trustee fees can differ substantially across various regions in the UK. For instance, fees tend to be higher in London and the South East compared to other parts of the country. This regional disparity is often due to the cost of living and operating a business in these areas.
- London and South East: Higher fees due to increased operational costs.
- Other regions: Fees are generally lower, reflecting the local economic conditions.
When comparing fees, it’s essential to consider the regional context in which the trustee operates.
Variations by Trustee Type
The type of trustee also plays a significant role in determining fees. Different trustees offer varying levels of service and expertise, which are reflected in their charges.
- Corporate Trustees: Often charge higher fees due to their comprehensive services and expertise.
- Individual Trustees: May offer more competitive pricing, depending on their experience and the services required.
Understanding the different types of trustees and their fee structures can help you make an informed decision when selecting a trustee.
By considering both regional variations and the type of trustee, you can better evaluate whether the fees you’re being charged are reasonable and in line with market standards.
Additional Costs Associated with Trusteeship
Beyond the basic trustee fees, there are additional costs associated with trusteeship that need to be considered. These costs can significantly impact the overall cost of trust management and should be carefully evaluated.
Administration Fees
Administration fees cover the day-to-day management of the trust, including tasks such as accounting, tax returns, and correspondence. These fees can vary depending on the complexity of the trust and the service provider.
Asset Management Fees
Asset management fees are charged for the management of the trust’s investments. These fees can be a percentage of the assets under management or a flat fee, depending on the agreement with the asset manager.
For more detailed information on asset management fees and other charges, you can refer to this document that outlines the costs associated with trust management.
Legal Expenses
Legal expenses are incurred when legal advice is needed, such as during the setup of the trust, disputes, or changes to the trust deed. These costs can vary widely depending on the complexity of the legal work required.
Understanding these additional costs is crucial for effective trust management. Here’s a breakdown of the typical additional costs associated with trusteeship:
| Cost Type | Description | Typical Range |
|---|---|---|
| Administration Fees | Day-to-day management, accounting, tax returns | £500 – £5,000 per annum |
| Asset Management Fees | Management of trust investments | 0.5% – 2% of assets under management |
| Legal Expenses | Legal advice and services | £1,000 – £10,000+ per matter |
By understanding these costs, trustees can better manage the financial aspects of trusteeship and ensure transparency in fee disclosure.
How to Evaluate Trustee Fee Transparency
Understanding the transparency of trustee fees is crucial for beneficiaries to ensure they are not overpaying for trust management services. As we navigate the complexities of trust management, it’s essential to shed light on the fees associated with professional trustee services in the UK.
Beneficiaries should be aware that a clear breakdown of fees is not just a matter of good practice but a necessity for trust. A transparent fee structure helps beneficiaries understand what they are paying for and why. According to guidelines from professional bodies, a detailed breakdown should include all costs associated with the trust management, such as administration fees, asset management fees, and legal expenses.
Importance of Clear Fee Breakdown
A clear fee breakdown is vital for several reasons. Firstly, it allows beneficiaries to understand the costs associated with the trust management, ensuring that they are reasonable and justifiable. Secondly, transparency in fees helps to build trust between the trustee and the beneficiaries, fostering a positive and collaborative relationship.
For instance, a guide to trustee fees might outline the typical costs and provide examples of how fees are calculated, giving beneficiaries a clearer understanding of what to expect.
Red Flags to Watch For
When evaluating trustee fee transparency, beneficiaries should be vigilant for red flags that may indicate excessive or unjustified charges. Some warning signs include unexplained fees, sudden increases in charges without clear justification, and fees that seem disproportionately high compared to the services provided.
- Unexplained fees or charges
- Sudden, unjustified increases in fees
- Fees that are disproportionately high compared to the services provided
Being aware of these red flags enables beneficiaries to question and challenge the fees if necessary, ensuring that they receive fair value for the services provided.
Negotiating Professional Trustee Fees
Negotiating professional trustee fees can be a viable option for beneficiaries looking to manage their trust expenses effectively. Understanding when and how to negotiate these fees is crucial for ensuring that the costs associated with managing a trust are reasonable and transparent.
When and How to Negotiate
Beneficiaries may find it beneficial to negotiate trustee fees, especially if they have concerns about the level of charges. The first step in negotiating is to understand the fee structure and identify areas where costs can be optimized. It’s essential to review the trust deed and any agreements with the trustee to determine the scope for negotiation.
When approaching negotiations, beneficiaries should prepare by gathering information on comparable trustee fees in the market. This can involve researching industry standards and consulting with other professionals. Being informed helps in making a strong case for fee adjustments.
Common Negotiation Strategies
Several strategies can be employed when negotiating professional trustee fees. One effective approach is to compare the fees with industry averages, using data from reputable sources to support your case. Another strategy is to discuss the scope of work and identify any tasks that could be simplified or outsourced to reduce costs.
Beneficiaries can also consider negotiating a tiered fee structure, where the trustee’s compensation is tied to performance metrics or specific milestones. This can align the trustee’s interests with those of the beneficiaries, potentially leading to more cost-effective management of the trust.
| Negotiation Strategy | Description | Potential Benefit |
|---|---|---|
| Comparing Industry Averages | Researching and comparing trustee fees with industry standards | Ensures fees are competitive and reasonable |
| Tiered Fee Structure | Linking trustee compensation to performance or milestones | Aligns trustee interests with beneficiary goals |
| Simplifying Tasks | Identifying tasks that can be simplified or outsourced | Reduces overall cost of trust management |
By employing these strategies, beneficiaries can effectively negotiate professional trustee fees, ensuring that the costs are justified and aligned with the trust’s objectives.
Tax Implications of Trustee Fees
Three rule changes you may need to consider (2026/27)
1. Pensions become subject to IHT from 6 April 2027. Most unused defined-contribution pension pots currently sit outside the estate for IHT — that ends on 6 April 2027 (gov.uk policy paper). HMRC estimates around 10,500 estates will face IHT for the first time as a result.
2. Business and agricultural property reliefs capped at £2.5m per person from 6 April 2026. Above the cap, only 50% relief applies — effective IHT of 20%. AIM shares dropped to 50% relief and do not use the £2.5m allowance (Saffery — APR/BPR reforms).
3. The NRB, RNRB and £2m taper threshold are frozen until 5 April 2031 following the 2024 and 2025 Budgets (gov.uk — NRB and RNRB freeze). With inflation, more estates will be pulled into IHT each year — a process commonly called “fiscal drag.”
The tax implications of trustee fees are a critical consideration for those managing trusts in the UK. As we navigate the complexities of trust management, it’s essential to understand how these fees impact your tax liabilities.
Understanding Tax Deductions
Trustee fees can be deducted from the trust’s income or gains, potentially reducing the tax payable. It’s crucial to keep accurate records of these fees to ensure you’re claiming the correct amount. We recommend consulting with a tax professional to maximize your deductions and comply with HMRC regulations.
When calculating tax deductions, consider the following:
- The type of trust and its tax status
- The nature of the trustee fees incurred
- Any other expenses that may be deductible
Reporting Fees to HMRC
Accurate reporting of trustee fees to HMRC is vital to avoid any potential penalties. Trustees must complete the relevant sections of the trust’s tax return, detailing the fees paid during the tax year. We advise maintaining detailed records and seeking professional advice to ensure compliance.
When reporting trustee fees, consider the following steps:
- Gather all relevant documentation, including invoices and payment records
- Complete the trust’s tax return accurately, ensuring all deductible fees are claimed
- Submit the tax return by the deadline to avoid any penalties
By understanding the tax implications of trustee fees and maintaining accurate records, you can minimize your trust’s tax liability and ensure compliance with HMRC regulations. For personalized advice, we recommend consulting with a qualified tax professional.
Finding the Right Professional Trustee
The process of identifying a suitable professional trustee involves careful consideration and research. Beneficiaries should look into various factors to ensure they find a trustee who can effectively manage the trust according to its terms and the beneficiaries’ needs.
Recommendations and Reviews
One of the first steps in finding a professional trustee is to seek recommendations from trusted professionals, such as solicitors or financial advisors, who have experience working with trustees. They can provide valuable insights into the capabilities and reliability of potential trustees.
It’s also essential to read reviews and testimonials from existing or past clients. This can give you a sense of the trustee’s reputation, level of service, and any potential issues that may have arisen during their administration of trusts.
Professional Associations to Consider
Professional associations play a crucial role in maintaining standards within the industry. Trustees who are members of reputable associations are likely to adhere to best practices and ethical guidelines. Some notable associations include the Society of Trust and Estate Practitioners and the Association of Trust Professionals.
When evaluating potential trustees, consider the following factors:
- Experience in managing trusts of similar complexity and size
- Professional certifications and memberships in industry associations
- Fees and charging structures
- Communication style and responsiveness
To help you compare different trustees, here’s a sample comparison table:
| Trustee | Experience | Fees | Professional Memberships |
|---|---|---|---|
| Trustee A | 10+ years | £500 – £2,000 per annum | STEP, ATP |
| Trustee B | 5+ years | £800 – £3,000 per annum | ATP |
| Trustee C | 15+ years | £1,000 – £5,000 per annum | STEP |
By carefully evaluating these factors and doing your due diligence, you can find a professional trustee who meets your needs and ensures the effective administration of your trust.
Frequently Asked Questions About Trustee Fees
Beneficiaries often have questions about trustee fees, including common misconceptions and how to address concerns about excessive fees. Understanding these issues is vital for effective trust management.
Clarifying Misconceptions
One common misconception is that trustee fees are always excessive. However, professional trustee costs in the UK can vary based on the complexity of the trust, the size of the trust fund, and geographical location. It’s essential to understand that trustee charges are not arbitrary but are based on the services provided.
Justifying Fees
Trustee fees are justified by the expertise and time required to manage a trust effectively. Professional trustees provide valuable services, including asset management, tax planning, and ensuring compliance with legal requirements. When evaluating trustee fees, consider the overall value they bring to the trust.
Addressing Concerns About Excessive Fees
If beneficiaries feel that trustee fees are excessive, they should review the fee structure and compare it with industry standards. It’s also helpful to discuss concerns with the trustee or seek advice from a financial expert. Understanding the breakdown of professional trustee costs in the UK can help beneficiaries make informed decisions.
FAQ
What are professional trustee fees, and how are they determined?
Professional trustee fees are charges levied by professional trustees for managing trusts. These fees are determined based on factors such as the complexity of the trust, the size of the trust fund, and the geographical location.
How do I know if the trustee fees are reasonable?
To assess whether trustee fees are reasonable, consider the services provided, the expertise of the trustee, and compare the fees with market rates in your region. Transparency in fee disclosure is also crucial.
What are the different fee structures used by professional trustees?
Professional trustees may charge using different fee structures, including hourly rates, flat fees, or a percentage of the trust assets. Each structure has its advantages and disadvantages, and the most suitable one depends on the specific trust.
Can I negotiate professional trustee fees?
Yes, it is possible to negotiate professional trustee fees. It’s essential to understand the services provided and the market rates before entering into negotiations. Common negotiation strategies include discussing the scope of work and the fee structure.
How do trustee fees impact the trust fund, and are they tax-deductible?
Trustee fees are deducted from the trust fund, reducing its value. However, these fees are generally tax-deductible, and understanding how to claim these deductions can help minimise tax liabilities.
What should I do if I feel that the trustee fees are excessive?
If you believe that the trustee fees are excessive, review the fee disclosure and assess the services provided. You may want to discuss your concerns with the trustee or seek advice from a financial expert. In some cases, it may be possible to negotiate a reduction in fees or change trustees.
How do I find a suitable professional trustee, and what should I consider?
To find a suitable professional trustee, seek recommendations from trusted professionals, explore professional associations, and review the trustee’s expertise and services. Consider factors such as their experience, fee structure, and the level of transparency they provide.
Are there any additional costs associated with trusteeship besides the trustee fees?
Yes, there are additional costs associated with trusteeship, including administration fees, asset management fees, and legal expenses. Understanding these costs and how they are incurred can help you manage the trust more effectively.
How do market rates for professional trustees vary across different regions in the UK?
Market rates for professional trustees can vary significantly across different regions in the UK, depending on factors such as the cost of living and the level of demand for trustee services. Researching local market rates can help you determine whether the fees charged are reasonable.
Paying Charity Trustees and Recognising Extraordinary Services
Two questions that arise frequently in trustee fee discussions — yet are rarely addressed together — are whether charity trustees can be paid at all, and what circumstances might justify fees above the standard market rate for any professional trustee. Both questions have clear, if nuanced, answers under English and Welsh law.
Can Charity Trustees Be Paid? The CC11 Position
The default position under charity law is that trustees of a charitable trust or charitable incorporated organisation (CIO) serve on a voluntary basis and may not receive payment for their trustee duties unless specific conditions are met. The Charity Commission’s CC11 guidance on trustee expenses and payments sets out the framework that governs this area.
Payment is typically permissible where: the trust deed or governing document expressly authorises it; a majority of trustees agree and no conflict of interest exists for the trustee being paid; and the payment is reasonable and in the charity’s best interests. Where the governing document is silent, trustees may in some cases apply to the Charity Commission for a scheme authorising payment, though this is generally reserved for situations where a paid trustee brings genuinely specialist skills the charity could not otherwise access.
It is worth noting that reimbursement of reasonable out-of-pocket expenses — travel, accommodation, postage — is not treated as payment under CC11 and is generally permissible without further authorisation. Our team would always recommend reviewing the specific governing document before any remuneration arrangement is put in place.
What Counts as Extraordinary Services?
For non-charitable trusts, section 29 of the Trustee Act 2000 provides the statutory basis for professional trustee remuneration, allowing a trustee who acts in a professional capacity to be paid reasonable remuneration out of trust funds if the other trustees agree in writing. Standard fee schedules — typically in the range of 0.5% to 2% of trust assets annually for ongoing management — are generally regarded as reasonable for routine administration.
However, certain circumstances may justify additional or enhanced fees beyond that baseline. These are commonly referred to as extraordinary services and may include: contested trustee decisions requiring specialist legal input; managing litigation or tax investigations involving trust assets; overseeing the sale of an illiquid or complex asset such as a family business interest or agricultural land; or responding to a beneficiary dispute that demands a disproportionate level of trustee time and professional judgement. In our experience, a well-drafted trust deed will include a remuneration clause that distinguishes between routine management fees and the basis on which extraordinary services will be charged — typically at an agreed hourly rate rather than a percentage uplift.
When a Trustee Should Consider Waiving Their Fee Entirely
There are situations where accepting a trustee fee, even where it is legally permissible, may not be appropriate. A family member acting as co-trustee alongside a professional trustee may find that charging creates reputational or relational difficulties within the family. In certain cases, accepting payment can also have income tax implications for the trustee personally, since trustee remuneration is generally treated as income rather than a capital receipt. Additionally, where a trustee holds a senior position in a related organisation — such as a chair of a connected charity — charging a fee may raise governance concerns even if it is technically permitted. Our team recommends that any decision to waive or accept fees is documented clearly in trustee minutes to avoid ambiguity at a later date.
Common Questions About Trustee Fees
How much would a professional trustee charge?
In the UK, professional trustee fees typically fall in the range of 0.5% to 2% of trust assets per year for ongoing administration, though the precise figure will depend on the complexity of the trust, the nature of its assets, and whether the trustee is a corporate entity or an independent professional. Hourly rates for individual professional trustees commonly range from around £150 to £350 per hour, with larger corporate trustees — such as those offered by major law firms or specialist fiduciary companies — often operating at the higher end. It is generally advisable to request a written fee schedule before appointment and to compare at least two or three quotes, benchmarking candidates against their STEP membership status and whether they hold regulated fiduciary status.
What is the typical trustee fee?
There is no single standard trustee fee in England and Wales, but the most commonly cited benchmark for asset-based charging is between 0.5% and 1.5% of the trust fund annually for straightforward trusts. More complex arrangements — those involving multiple asset classes, overseas elements, or regular distributions to several beneficiaries — may attract fees closer to 2% or above. Where a trust deed contains a remuneration clause, the wording of that clause will generally govern what is permissible, with section 29 of the Trustee Act 2000 providing a statutory fallback where the deed is silent.
What is the 5% rule for trusts?
The 5% rule most commonly encountered in a UK trust context relates to income tax on trust distributions, not to trustee fees. Under HMRC rules applicable to certain offshore bond arrangements held within trust, a policyholder may withdraw up to 5% of the original investment each policy year on a tax-deferred basis. This is a cumulative allowance and does not of itself create an immediate income tax liability, though it may give rise to a chargeable event gain on surrender. If you have seen this figure referenced in a fee context, it may relate to a different jurisdiction or a specific trust deed provision — our team would recommend seeking clarification from a qualified tax adviser before drawing conclusions.
Do trustees make a lot of money?
For professional trustees acting in a commercial capacity, trustee work can form a meaningful part of a fiduciary practice’s income, particularly where they administer a number of trust funds simultaneously. However, individual trustee remuneration on any single trust is generally modest relative to the responsibilities involved. Lay trustees — including family members — typically receive no payment at all, serving instead as a form of stewardship for the benefit of the beneficiaries. The perception that trusteeship is highly lucrative generally does not reflect the day-to-day reality of routine trust administration in England and Wales.
Can a chair of a charity be paid?
A chair of a charity is a trustee and is therefore subject to the same CC11 rules that apply to all charity trustees. In most cases, the chair serves in a voluntary capacity and may not be paid for their trustee role unless the governing document expressly permits it or the Charity Commission has authorised payment. There is no special exemption for the chair position. Where a chair also provides distinct professional services to the charity — for example, legal advice or accountancy work in a personal professional capacity, entirely separate from their trustee duties — payment for those specific services may be permissible, subject to proper conflict of interest management and disclosure. The Charity Commission’s CC11 guidance sets out the conditions and safeguards that should be followed in any such arrangement.