Trust Maintenance Fee

[Pepper]

I note different trustees charge different fees for maintaining a discretionary trust. My trustee is charging annual fee of 1% on the first half million UKP, 0.75% on the next half million UKP, then 0.5% on the remainder. Yet in one of your letters, I note some are charging fixed fee as little as UKP500 p.a.to manage the entire trust. None of these fees include managing an investment portfolio either. Would it be correct to say that it is OK to go for a cheaper trustee (instead of going to big names) because there is really no risk of losing your money since they don't invest it for you anyway. Also, if I find my trustee's maintenance fee too expensive, is it possible to keep the same trust and go to another trustee? I'd be grateful to hear what the normal market rate is for maintaining an offshore discretionary trust.

[Taxbar]

There is no NORMAL RATE. It all depends on what is being done and who you have appointed and where.
Trustees generally charge on an hourly rate, plus some fixed charges if they are professionals and on a percentage rate if they are financial institutions.

You may be in the classic trap that when you try and remove the trustees that if you sigend a standard trust deed:- Only the trustees can appoint and remove trustees.
without reviewing your exact situation itis not possible to give a view on whether you can move and if the fees are too high.

Daniel Feingold
STP
International & UK Tax Consultants
info@stratax.co.uk