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The Law Offices of Kenneth Vercammen & Associates, handles
Probate, contesting wills, contesting estates, Probate disputes,
inheritance problems, estate mismanagement and theft, undue influence,
contentious probates, and other relevant issues. We encourage you
to consult an attorney if you are faced with any of these situations.
Do you think you're entitled to money or might be entitled to money
from an estate or trust? Do you believe that someone is unfairly
claiming money or property that is rightfully yours? Has the executor
not fulfilled their duties? If so, and you are a prospective plaintiff
or defendant, then you may need an attorney to protect your rights.
There are three kinds of commission: Corpus commission (Title 3b:
18-25), income commission (Title 3b: 18-24), and termination commission
(Title 3b: 18-28).
Corpus commission - is similar to a guardianship. Take the first
$400,000, multiply one half of 1%, multiply again by the number
of months of the period of accounting divided by 12. Over $400,000,
multiply by .003 by anything over $400,000 times the number of months
divided by 12. The idea is that if you only work for 3 months, you
will not get the whole year. When there is more than one trustee,
you can add 1/5 of the corpus commission for each additional trustee.
Trustee is also allowed to take income commission, which is 6% of
the income commission.
These areas are extremely complex, and you should not attempt to
reach a decision on whether or not to take action (and, if so what
action to take) without the assistance of counsel.
You must call to schedule an in-office consultation as we cannot
provide legal advice over the phone.
The following New Jersey statute sets forth the annual commissions
on corpus
3B:18-25. Fiduciaries [Executors and Administrators] may take annual
commissions on corpus
3B:18-25. a. Fiduciaries may annually, without court allowance,
take commissions on corpus (including accumulated income which has
been invested by the fiduciary) in the amount of $5.00 per thousand
dollars of corpus value on the first $400,000.00 of value of corpus
and $3.00 per thousand dollars of the corpus value in excess of
$400,000.00.
b. Notwithstanding the provisions of subsection a. of this section,
if the fiduciary is a banking institution, foreign bank or savings
and loan association authorized to exercise fiduciary powers, the
fiduciary shall be entitled to such commissions as may be reasonable.
c. Notwithstanding the provisions of subsection a. of this section,
a fiduciary may take a minimum commission of $100.00 annually.
d. The value of the corpus for the purpose of this section shall
be the "presumptive value" as defined in N.J.S. 3B:18-18
or, at the option of the fiduciary, the value at the end of the
period.
e. Upon application of a person interested in the trust or guardianship,
a court may review the reasonableness of the commissions of the
fiduciary, provided, however, the fiduciary shall be entitled to
receive at least the compensation provided for all fiduciaries as
set forth in subsections a. and c. of this section.
3B:18-25. 1. Taking annual amount on accounts of corpus commissions:
two or more fiduciaries Taking annual amount on accounts of corpus
commissions: two or more fiduciaries. If there are two or more fiduciaries,
the amount of the annual commissions taken pursuant to N.J.S. 3B:18-25
may equal the commissions which may be taken pursuant to that section
when there is but one fiduciary, plus one-fifth of the commissions
for each fiduciary more than one. No one fiduciary shall be entitled
to any greater commission than that which would be allowed if there
were but one fiduciary involved.
3B:18-25.2. Powers of qualified bank; duties of agent 12. a. Notwithstanding
any law to the contrary, a qualified bank acting in any capacity
authorized pursuant to section 28 of P.L. 1948, c.67 (C. 17:9A-28)
on behalf of a trust or estate may employ and pay reasonable compensation
to any person, including attorneys, auditors, investment advisers
or other agents, even if they are affiliated or associated with
the qualified bank, to advise or assist the qualified bank in the
performance of any of its administrative duties, whether or not
discretionary, and to act without independent investigation upon
their recommendation, so long as the qualified bank exercises care,
skill, and caution in: selecting the agent;establishing the scope
and terms of the agent's duties consistent with the purpose and
terms of the governing trust instrument; and periodically reviewing
the agent's actions in order to monitor the agent's performance.
A qualified bank that delegates investment functions to an investment
adviser shall also comply with the requirements of sections 8 and
10 of P.L. 1997, c.26 (C. 3B: 20-11.8 and 3B:20-11.10).
b. In performing any agency function, the agent shall owe to the
qualified bank and the beneficiaries the same duties as the qualified
bank and shall be held to the same fiduciary standards as the qualified
bank.
c. In the absence of express contrary provisions in the trust instrument,
a qualified bank which employs an agent other than an investment
adviser or investment manager, may pay the agent from the fiduciary
fund if the qualified bank reasonably believes in the exercise of
its discretion that such an arrangement is in the best interests
of all interested persons and will improve the efficiency of the
administration of the fiduciary fund. In the absence of express
contrary provisions in the trust instrument, a qualified bank which
delegates investment and trust asset management functions to an
investment adviser or an investment manager shall comply with the
cost control and other requirements of sections 8 and 10 of P.L.
1997, c.26 (C. 3B: 20-11.8 and 3B:20-11.10).
d. A qualified bank which substantially complies with the requirements
of subsections a. and c. of this section shall not be liable to
the beneficiaries or to the trust or estate for the decisions or
actions of the agent, and shall not, solely by reason of the delegation,
be deemed to engage in acts of self-dealing or a conflict of interest.
e. By accepting an appointment as agent from a qualified bank acting
as a fiduciary of a trust or estate that is subject to the law of
New Jersey, the agent submits to the jurisdiction of the courts
of New Jersey, even if the agency agreement provides otherwise.
3B:18-26. Failure to take commissions annually shall not constitute
a waiver thereof The failure of a fiduciary to take commissions
in any year shall not constitute a waiver by the fiduciary to take
in a subsequent year the commissions not taken for that year.
3B:18-27. Commissions taken annually subject to review Commissions
taken as provided in N.J.S. 3B:18-25 shall be subject to review
on intermediate and final accountings, and to the extent that aggregate
commissions so taken exceed the commissions allowable under this
article, they may be disallowed.
3B:18-28. Corpus commissions on termination of trust, guardianship
or upon distribution of assets In addition to the annual commissions
on corpus, upon termination of the trust or guardianship, or upon
distribution of assets from the trust or guardianship, the fiduciary
may take a commission on corpus distributed, including accumulated
income which has been invested by the fiduciary. The value of the
corpus for the purpose of computing the commissions shall be the
"presumptive value" or, at the option of the fiduciary,
the value at the time of distribution, as defined in N.J.S. 3B:18-18.
The amounts of the commissions to be taken are as follows:
a. If the distribution of corpus occurs within 5 years of the date
when the corpus is received by the fiduciary, an amount equal to
the annual commissions on corpus authorized pursuant to N.J.S. 3B:18-25,
but not actually taken by the fiduciary, plus an amount equal to
2% of the value of the corpus distributed;
b. If distribution of the corpus occurs between 5 and 10 years
of the date when the corpus is received by the fiduciary, an amount
equal to the annual commissions on corpus authorized pursuant to
N.J.S. 3B:18-25, but not actually received by the fiduciary, plus
an amount equal to 11/2% of the value of the corpus distributed;
c. If the distribution of corpus occurs more than 10 years after
the date the corpus is received by the fiduciary, an amount equal
to the annual commissions on corpus authorized pursuant to N.J.S.
3B:18-25, but not actually received by the fiduciary, plus an amount
equal to 1% of the value of the corpus distributed;and
d. If there are two or more fiduciaries, their corpus commissions
shall be the same as for a single fiduciary plus an additional amount
of one-fifth of the commissions for each additional fiduciary.
The following in the NJ Court Rule on Commissions and attorneys
fees: RULE 4:88. COMMISSIONS AND ATTORNEY'S FEE 4:88-1. Affidavit
of Accountant's Services
If the allowance of such commissions is within the discretion of
the court, the applicant therefor shall, upon every application
for commissions on corpus, at least 20 days prior to the day on
which the account is settled, file an affidavit stating in detail
the nature of the services rendered in administering the estate
and specifying the amount of the commissions requested.
4:88-2. Commission Payments Before Settlement
Whether or not annual commissions are taken pursuant to N.J.S.A.
3B:18-17, a fiduciary may apply to the court to which he or she
is accountable for an ex parte order supported by appropriate affidavits
for payment to the fiduciary on account of commissions on corpus
for services to date. Such order shall not be binding on the beneficiaries,
and the payment so ordered shall be subject to approval and allowance
or to disallowance by the court upon the settlement of the fiduciary's
account.
4:88-3. Notice as to Apportionment of Commissions
The court shall not apportion commissions among cofiduciaries unless
proof is made that five days' notice of the application for apportionment
has been given to those of them who do not appear.
4:88-4. Affidavit of Attorney's Services
On every application for attorney's fees, the attorney shall file
with the court at least 20 days prior to the day on which the account
is settled an affidavit stating, in addition to the information
required by R. 4:42-9(b), whether any part of the requested fee
is to be paid to or shared with an attorney or firm of attorneys
of another state or jurisdiction and if so, the amount to be paid
or the manner in which the fee is to be shared shall be set forth
and shall be supported by an accompanying affidavit of the foreign
attorney or attorneys stating in detail the nature of the services
rendered. The allowance shall be payable to the New Jersey attorney,
and shall state what part, if any, of said allowance is to be paid
to or shared with the foreign attorney or attorneys.
For Probate and Estate Administration matters, schedule a confidential
consultation with Kenneth Vercammen, 732-572-0500
KENNETH VERCAMMEN, ESQ.
RECENT SPEAKING ENGAGEMENTS ON WILLS, ELDER LAW, AND PROBATE
Edison Adult School -Wills, Elder Law & Probate- 2004, 2003,
2002 [inc Edison TV], 2001, 2000,1999,1998,1997 Old Bridge AARP
2002; Guardian Angeles/ Edison 2002; St. Cecilia/ Woodbridge Seniors
2002; Temple Beth Or 2002; Hall's Corner/ East Brunswick 2002; -Linden
AARP 2002 -Woodbridge Adult School -Wills and Estate Administration
-2001, 2000,1999,1998,1997,1996 Woodbridge Housing 2001; Metuchen
Seniors & Metuchen TV 2001; Frigidare/ Local 401 Edison 2001;
Chelsea/ East Brunswick 2001, Village Court/ Edison 2001; Old Bridge
Rotary 2001; Sacred Heart/ South Amboy 2001; Livingston Manor/ New
Brunswick 2001; Sunrise East Brunswick 2001; Strawberry Hill/ Woodbridge
2001; -Wills and Elder Law - Metuchen Adult School 1999,1997,1996,1995,1994,1993
-Clara Barton Senior Citizens- Wills & Elder Law-Edison 2002,
1995 -AARP Participating Attorney in Legal Plan for NJ AARP members
-Senior Legal Points University of Medicine & Dentistry UMDNJ
& St. Peter's-2000, 1999,1998 -East Brunswick AARP Wills 2001
-Iselin/ Woodbridge AARP Wills 2000 -Metuchen Reformed Church; Franklin/
Somerset/ Quailbrook Seniors 2001 -North Brunswick Senior Day 2001
-Wills, Elder Law and Probate-South Brunswick Adult School &
Channel 28 TV 1999, 1997,1993 -Wills and Estate Planning-Old Bridge
Adult School 1998,1997,1995 -Senior Citizen Law-Perth Amboy YMHA
1995 -Wills, Living Wills and Probate-Spotswood Community School
1995,1994,1993 -Wills and Probate-Sayreville Adult School 1997,
1996,1995,1994 -Living Wills-New Jersey State Bar Foundation and
St. Demetrius, Carteret 1994 -Wills and Estate Planning-Edison Elks
and Senior Citizens January 1994 -"Legal Questions Clinic"
Metuchen Adult School March 1995,1994,1993 -Estate Planning to Protect
Families-Metuchen Chamber of Commerce April 1993 -Living Wills-Dean
Witter and Nordstroms, Menlo Park Mall October 1992; Trusts and
Living Wills-Dean Witter, Metro Park, June 1992; Estate Planning-North
Brunswick Republican Club May 1992; -Wills and Power of Attorney
1991 Edison Democratic Association Other Seminars -Automobile Insurance
- Middlesex County College - 1990 -Criminal & Juvenile Courts
Piscataway Vo Tech - 1990 Defending Speeding Cases - New Jersey
State Bar Association/NJSBA - 1989 Self Defense and Home Protection
- Speaker - New Brunswick Crime Watch - 1989
New Jersey State Bar Association -General Practice Section-Board
of Directors 1995- Present
ADJUNCT PROFESSOR Middlesex County College Edison, NJ February,
2001-April, 2001; Jan. 1990-May, 1991
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