Office of Public Sector Information

PART 1 Citation, commencement and interpretation

Citation and commencement

1.  This Order may be cited as the Public Trustee (Fees) Order 2008 and shall come into force on 1st April 2008.

Interpretation

2.  In this Order—

“acceptance valuation date” in respect of any trust property means the date selected by the public trustee in relation to that property under article 11(1) or 15(1);

“executor” means the executor of a will or the administrator of an estate however appointed;

“financial year” means the year ending on 31st March;

“gross capital value” means the value of the estate or trust property (excluding any annuity or other terminable payment purchased by any person in the name of, transferred to or covenanted to be paid to the public trustee for the benefit of some other person) without deduction for debts, incumbrances, funeral expenses or inheritance tax.

PART 2 General

Payment of fees from capital or income

3.—(1) Subject to paragraph (2), all fees must be paid out of capital.

(2) The following fees must be paid out of income—

(a) fees which the public trustee has directed to be paid out of income under section 1(3) of the Public Trustee (Fees) Act 1957;

(b) the administration fee in cases to which article 18 applies;

(c) the insurance fee provided for by article 21;

(d) the income collection fee provided for by article 24;

(e) the management fee provided for by article 30; and

(f) the value added tax fee provided for by article 31, in cases where the fee in respect of which the value added tax fee is payable is itself payable out of income.

Calculation

4.  In ascertaining the amount payable in respect of any fee the public trustee—

(a) will take the value of any estate or trust property to be the price which it is estimated that the estate or property would fetch in the open market; and

(b) may treat the value of any estate or trust property as being that multiple of £100 which is nearest to the estimate of its exact value.

Postponement of payment of fee

5.  The public trustee may postpone any payment due in respect of any fee.

Commutation

6.  Liability to pay all or any part of any sums which may become due in respect of any fee may be commuted by the public trustee in consideration of a payment which represents the capital value of that liability.

Power to remit fees and settle disputes

7.—(1) The public trustee may remit so much as appears equitable of any fee payable in respect of any estate or trust where the whole or any part of the property is in another estate or trust in which the public trustee is acting.

(2) The public trustee may remit the whole or part of any fee where it is equitable to do so having regard to—

(a) the nature and character of the estate, trust or other matter;

(b) the work in respect of which the fee is charged; or

(c) the impact of the fee on a beneficiary or beneficiaries.

PART 3 Executorship fee

When executorship fee payable

8.  An executorship fee is payable, in accordance with articles 9 to 11, on acceptance by the public trustee of any executorship.

Property subsequently received

9.  If additional property becomes part of an estate of which the public trustee is executor an executorship fee is payable in respect of the gross capital value of the additional property on its acceptance valuation date of such amount as would have been payable if the additional property had formed part of the estate at the date of acceptance of the executorship and this Order had been in force at that date.

Postponement of payment of executorship fee

10.  Where an executorship fee becomes payable under article 8 or 9 in respect of an estate any part of which is not in possession or not readily realisable, the public trustee will exclude the value of that part from the value of the remainder of the estate for the purpose of ascertaining the amount of the executorship fee then payable.

Amount of executorship fee

11.—(1) Subject to paragraphs (3) and (4), the executorship fee is calculated in accordance with paragraph (2) as a percentage of the gross capital value of the estate on the date of acceptance or on such convenient date as the public trustee may select.

(2) The rate of executorship fee is—

(a) in respect of the first £50,000, 12.5 per cent;

(b) in respect of any excess over £50,000 up to £75,000, 10 per cent;

(c) in respect of any excess over £75,000 up to £100,000, 5 per cent;

(d) in respect of any excess over £100,000, 3.8 per cent

but so that the fee payable is not less that £1,250.

(3) Where the main asset of an estate to be vested in one or more beneficiaries is an unencumbered property which was the principal private residence of the deceased and the public trustee’s executorship duties have been exceptionally simple, a reduction may be made in the amount of the fee payable.

(4) Where the public trustee is acting as personal representative of a deceased statutory owner or tenant for life and is not acting otherwise in the trust a fee of £150 only will be payable.

(5) In this article, “statutory owner” and “tenant for life” have the meanings given by section 117(1) of the Settled Land Act 1925(3).