Trustee fees

In the matter of the Estate of Hyman Marks the High Court was asked to approve a trustee fee of $5,000 per annum. By way of background as noted at [4]:

“The trust fund was established under the Will of the late Hyman Marks, who died on 22 May 1895. Since then, various trustees have been appointed to manage the trust fund which, with the advice of an investment adviser, comprises as at 28 February 2025 of a sum just over $2.7 million. The trustees meet at least once a month to assess the various applications received seeking assistance from the trust fund. The process adopted by the trustees to manage and distribute the funds are set out in the affidavit of Ms Lilburne.”

Based on the information available in the decision this equates to approximately $400 per month.

In another recent decision that touched on trustee charge our rates Anderson J was required to select a trustee from candidates put forward by the proceeding’s applicant and respondents. After determining that a legal background would be advantageous Anderson J considered that all of the legally qualified candidates would be suitable. With respect to costs the hourly rates of the respective candidates ranged from $450 to $800 + GST. While Anderson J was concerned regarding costs as noted at [23}:

” … it is important that the appointed trustee has the confidence of the beneficiaries. This is a closely held family trust which is in conflict. Open lines of communication with the beneficiaries will be important. As I discussed above, the respondents and [a beneficiary of the trust who addressed the court on the matter] have expressed a lack of trust and confidence in the trustees proposed by the applicant. Irrespective of whether these concerns are well-founded, the applicant’s proposed trustees will start with a distinct disadvantage in administering the trust without the buy-in of all parties. Not only is this difficult for the replacement trustee, but I apprehend that such an appointment may well lead to additional cost and expense if this lack of confidence results in further disputes. For this reason, appointing [other proposed trustees] based on a lower hourly rate may be a false economy.”

The decision of the court in light of the range of relevant considerations was to appoint the trustee with the highest hourly rate (noting the possibility of an annual fee and that the proposed trustee might nominate a trustee company to accept the appointment).

Vicki Ammundsen is presenting a trust administration master class on Wednesday 29 October 2025, which canvasses matter to take into account setting trustee fees.

References

• In the matter of the Estate of Hyman Marks [2025] NZHC 3111
• Trusts Act 2019, s 137
• Gallagher-Dekker v Gallagher [2025] NZHC 2928