A statutory fee to which the trustee is entitled that is a percentage of the corpus and the income of the trust

A statutory fee to which the trustee is entitled that is a percentage of the corpus and the income of the trust

• A. Honorarium
• B. Administration fee
• C. Trustee's commission
• D. Fee

Answer: (C)

The concept being tested is how trustees are compensated under statutory rules for managing a trust. In many jurisdictions, trustees are entitled to a statutory compensation for their services, and this fee is calculated as a percentage of both the trust’s corpus (the principal assets) and the income the trust earns. This specific form of compensation is called the trustee’s commission. It reflects the work of administering the trust and the value of the assets placed under the trustee’s care, with the rate often set or guided by statute and sometimes varied by the size of the trust and its income. This differs from an honorarium, which is typically a voluntary, one-time payment for services not mandated by law; and from an administration fee, which is a general charge for probate administration rather than ongoing trust management. A simple “fee” is too vague to capture that specific statutory, percentage-based compensation designed for trustees.

The concept being tested is how trustees are compensated under statutory rules for managing a trust. In many jurisdictions, trustees are entitled to a statutory compensation for their services, and this fee is calculated as a percentage of both the trust’s corpus (the principal assets) and the income the trust earns. This specific form of compensation is called the trustee’s commission. It reflects the work of administering the trust and the value of the assets placed under the trustee’s care, with the rate often set or guided by statute and sometimes varied by the size of the trust and its income.

This differs from an honorarium, which is typically a voluntary, one-time payment for services not mandated by law; and from an administration fee, which is a general charge for probate administration rather than ongoing trust management. A simple “fee” is too vague to capture that specific statutory, percentage-based compensation designed for trustees.