Compensation by Account
The by Account method applies percentage-based compensation to specific accounting categories.
Compensation percentages are entered for:
Capital receipts/disbursements
Revenue receipts/disbursements
Care and management
You must also select a calculation method:
Assets only
Assets less linked liabilities
All values are entered as percentages and applied according to the selected calculation structure. This method is typically used when compensation follows a traditional percentage-of-receipts-and-disbursements model.
Compensation by Tier
The by Tier method applies compensation based on asset value brackets.
Each tier includes:
A defined asset range
A corresponding compensation percentage
For estates, each tier represents the different levels of gross asset value at death.
For trusts and powers of attorney, tiers will be based on the current sum of asset values, pro-rated for the reporting period.
This method is typically used when compensation follows a sliding scale based on asset value.
Choosing a fee type
The appropriate compensation structure depends on your firm’s standard practice, jurisdictional requirements, and court expectations. Default fee types are configured at the organization level and may be adjusted at the file level when necessary.