Report in support of legislation related to governing commissions of donees of a power in trust

SUMMARY

The Trusts, Estates and Surrogate’s Courts Committee (John M. Oliveri, Chair) issued a letter in support of amendments proposed by OCA’s Surrogate’s Court Advisory Committee concerning commissions of donees of a power in trust. This proposed legislation would provide compensation for persons holding property pursuant to a power-in-trust at the same rate as testamentary trustees. In general, the role of a donee of a power in trust implies an ongoing fiduciary relationship during the time period in which the power exists. Though the property subject to the power is not vested in the donee, as would be the case with a trust, the same responsibilities and risks would apply to the donee as would apply to a trustee. The Committee believes that despite technical differences that exist between the two roles, each is acting in a fiduciary capacity and should be compensated accordingly.

UPDATE

Bill introduced in Legislature – April 22, 2016