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
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!
Free Consultation
Client Review
"I worked for Peter Klenk for 4 wonderful years. I can’t speak highly enough of everyone at the firm. Everyone truly cares about their clients and has a strong sense of responsibility to get things done right. I would highly recommend Klenk Law!"
Flora Novick
Areas Served:
Philadelphia PA, Allentown PA, King of Prussia PA, Montgomery County PA, Bucks County PA, Doylestown PA, Jenkintown PA, Marlton NJ, Moorestown NJWhat Our clients are saying
A Google User
Peter Klenk was great in leading us in the estate planning process.He was clear in describing the various steps and what they would accomplish. We were well satisfied and pleased that we had Peter to guide us.
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.
Gene Link
Knowledgeable lawyers, helpful attitude, fair fees.
Mr. Klenk has been easy to work with. I am confident he has given me good advice whenever I have called upon him. He has shown good work ethic and depth of knowledge in preparation of estate, wills, and trusts that I have worked with him on.
Anne W.
I saw four lawyers and was told by all of them; I should just forget contesting my mother's will. I knew what happened, but it is very hard to prove undue influence. I contacted the Law Offices of Peter L. Klenk & Associates. Attorney Amanda DiChello took my case. They were very honest and upfront about what would be involved trying to prove what I knew was true. Attorney DiChello may be young but she is extremely knowledgeable and skilled. She listened and understood what I conveyed to her. She knew exactly what information to use and crafted an outstanding interrogatory and many powerful depositions. Attorney DiChello understood the various emotional feelings this case created for my family and me; she was always there for us with a kind and encouraging word. We went to trial. The amount of work which she and her Paralegal did for the trial was incredible. They both knew my case inside and out! Attorney DiChello's powerful interrogative and thinking skills produced a positive outcome. Attorney DiChello did what other seasoned lawyers said was impossible!
Let us put our expertise to work for you.
Free consultation within 24 hours.
