Guardianships exist in many forms. Likewise, the amount of work they require differs significantly among the variety of guardianships. Guardians are appointed over a person, over their property, or even over both. The two situations in which we most commonly encounter guardianships are related to minors and too incapacitated persons. Incapacity is a broad label, usually including any person who can no longer care for themselves or manage their own finances. This article addresses Guardianship Fees in New Jersey.
Fee Schedule for Guardians in New Jersey
New Jersey has adopted the same fee schedule for guardians and trustees. The bifurcated approach that allows a guardian to take a percentage based fee on any income received during the year, and another percentage based on the principal. It should be noted, similarly to trustee compensation, a court can approve a fee larger than the statutorily prescribed limit for unusual or extraordinary services. These fees can be taken annually until the guardianship ends.
Guardian Income Commission
Guardians in New Jersey are entitled to a 6% fee on all income received by guardian annually.
Guardian Corpus Commission
Guardians are entitled to an annual commission on the corpus of the trust. This includes money that qualified as income in previous years and has since been reinvested. The statutory fee for all property is .005 of the first $400,000 and .003 on the value of the corpus that exceeds $400,000.
So for example, the corpus commission on a trust with a value of $3.5 million would be:
| $400,000 x .005 = $ 2,000 |
| $3,100,000 x .003 = $ 9,300 |
| Annual Corpus Commission = $ 11,300 |
Guardianship Percentage-Based Termination Fee
In addition to income and corpus commissions, when the guardianship is terminated, the guardian is entitled to a percentage-based termination fee. This fee depends on the value of the trust and amount of time they served as guardian prior to termination. Finally, the above fees and percentages change based on the number of guardians serving. The above assumes that only one guardian is serving. If more than one guardian is serving, a small percentage is added to the overall commission, to be divided among the serving guardians.
In our blog we will provide examples from case law of what happens when a Guardian charges a commission above these limits in New Jersey. Guardianship Fees in New Jersey is an important subject to both the Guardian, the incapacitated person and the rest of the family.
If you have questions about guardianship fees in New Jersey or any other estate planning concerns contact our office for a free consultation.
New Jersey Estate Administration Fees
- Overview
- NJ Probate Attorney Fees
- NJ Executor Fees
- NJ Trustee Fees
- NJ Agent & Power of Attorney Fees
- NJ Guardianship Fees
Free Consultation
Peter Klenk is the founding member of Klenk Law, a seven attorney boutique estate planning law firm. We serve clients in Pennsylvania, New Jersey, New York, Minnesota and Florida. Peter Klenk received his Masters in Taxation LL.M. from NYU Law School and his J.D. from the University of Minnesota Law School. He served his country in the Navy JAGC during Desert Storm. Easy to talk to, feel free to call Peter for an appointment. We will make the process as easy as possible!
What Our clients are saying
Bill
I met Peter soon after he started his practice in Philadelphia, PA. He and his team have always been there for me and my various inquiries throughout my life-changing events, corporate relocations. I have lived in various cities throughout the nation, I have never had a problem in contacting Peter or a member of his team. He and his office responds quickly and returns calls to me to fulfill my requests for information or to revise my estate needs while posing relevant thought-provoking questions that I need to consider to secure my future. One of Peter's best qualities is his ability to answer clients complicated questions in a simple way to ensure comprehension.
Rachel Roney
Peter has done a great job with the estate planning for my father. He is very thorough and patient as we, the family need to make decisions.
Chris Curcio
Fantastic customer service. Very personable and most importantly they provide great explanations of what is required based on your individual needs. Highly recommend Klenk Law for anyone that needs to create a will and estate documents.
Dylan Small
Peter provided outstanding advice and preparation of a will and trusts.
Ian Marchant
Mr. Klenk, quickly understood the circumstances presented and provided clear and concise advice. This advice provided me with the information I required to progress the case to my advantage.
Let us put our expertise to work for you.
Free consultation within 24 hours.
