What are compensation fees in Estateably?
Compensation fees represent the executor, trustee, or fiduciary compensation calculated within an estate, trust, or POA file.
Estateably allows you to configure compensation structures that automatically calculate compensation based on the accounting data in the file.
Where do I manage compensation fee settings?
Compensation fee settings can be managed at the organization level.
To access these settings:
Log in to Estateably.
Click the Settings (gear) icon in the top-right corner.
Select Compensation Fees from the left-hand menu.
You will see configuration options for:
Estates
Trusts
POAs
What compensation categories can be configured?
When using the Account-based compensation method, you can configure percentages for:
Receipts
Capital Receipts
Revenue Receipts
Disbursements
Capital Disbursements
Revenue Disbursements
Care and Management
A percentage applied to the average annual market value of the estate or trust.
These percentages determine how compensation is calculated within the accounting reports.
What is the Care and Management fee?
The Care and Management fee is a compensation percentage applied to the average annual market value of the estate or trust assets.
For example, a percentage such as 0.4% may be applied depending on the configured compensation structure.
What calculation methods are available for compensation?
Estateably supports two primary compensation calculation methods:
By Account
Compensation is calculated using percentages applied to:
Capital receipts
Capital disbursements
Revenue receipts
Revenue disbursements
Care and management
This method follows a traditional percentage-of-receipts-and-disbursements model.
By Tier
Compensation is calculated based on asset value ranges.
Each tier includes:
A defined asset value range
A compensation percentage applied to that range
For estates, tiers are based on gross asset value at death.
For trusts and POAs, tiers are based on the current total asset value, pro-rated for the reporting period.
Can I use a flat fee instead of percentage-based compensation?
Yes. When configuring compensation within a specific file, you can choose from different compensation types, including:
Account-based
Tier-based
Flat fee
This flexibility allows compensation to match your firm's workflow or jurisdictional requirements.
Can I set compensation fees as a default?
Yes.
After configuring compensation percentages, you can select Set as Default.
This will automatically apply the configured compensation structure to all new files created in the future.
Can compensation fees be changed for a specific file?
Yes.
Even if your organization has set default compensation fees, they can still be adjusted within an individual file.
To do this:
Open the file.
Navigate to Estate Accounting or Trust Accounting.
Select Compensation Fees.
Modify the fee structure as needed.
Can I remove compensation fees?
Yes.
If you need to remove a compensation configuration, select Remove within the compensation settings.
This clears the current fee structure.
Where are compensation calculations used?
Compensation calculations appear in various accounting and distribution reports, including:
Informal Accounting reports
Statement of Accounts reports
Proposed distribution reports
These reports can include executor or trustee compensation calculations when the feature is enabled.
Can compensation be adjusted when generating reports?
Yes.
When generating accounting reports such as Informal Accounting or Statement of Accounts, you may be able to configure compensation options such as:
Adjusting the compensation structure
Applying a flat fee
Deducting an amount from compensation
Including applicable taxes on fees
Does Estateably calculate compensation automatically?
Yes.
Once compensation percentages or tiers are configured, Estateably automatically calculates compensation based on the accounting data entered in the file, including receipts, disbursements, and asset values.
Are compensation settings the same for estates, trusts, and POAs?
No.
Compensation settings for Estates, Trusts, and POAs are managed independently, allowing organizations to configure different compensation structures for each file type.
Can compensation settings impact accounting reports?
Yes.
If compensation is enabled, the calculated fees can be included in reports such as:
Informal Accounting
Statement of Accounts
Proposed distribution reports
These reports summarize financial activity and may display fiduciary compensation calculations as part of the accounting summary.