Office of Public Sector Information

PART 4 Acceptance fee

When acceptance fee payable

12.—(1) Subject to paragraph (2), an acceptance fee is payable, in accordance with articles 13 to 15, on acceptance by the public trustee of any trust other than a trust consisting entirely of an annuity or other terminable payment purchased by any person in the name of, transferred to or covenanted to be paid by the public trustee for the benefit of some other person.

(2) An acceptance fee is not payable in respect of any estate which the public trustee accepts as executor on or after 1st April 1977 during the period in which the public trustee so acts.

Property subsequently coming into trust

13.  If additional property becomes subject to a trust (other than an executorship accepted by the public trustee on or after 1st April 1977) which is administered by the public trustee as executor or as trustee, and such property is not an accumulation of the income of the property already subject to the estate or the trust, an acceptance 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—

(a) the additional property had formed part of the estate or the trust property at the date of acceptance of the estate or the trust; and

(b) this Order had been in force at that date.

Postponement of payment of acceptance fee

14.  Where an acceptance fee becomes payable in accordance with article 12 or 13 in respect of estate or trust property, any part of which is not in possession or not readily realisable, the public trustee—

(a) will exclude the value of the property not in possession or not readily realisable from the value of the remainder of the estate or trust property for the purpose of ascertaining the amount of the acceptance fee then payable; and

(b) will, when the property so excluded falls into possession or is realised, as the case may be, charge an acceptance fee in respect of the gross capital value of the excluded property of such amount as would have been payable if—

(i) the excluded property had formed part of the estate or of the trust property at the date of acceptance of the estate or of the trust; and

(ii) this Order had been in force at that date.

Amount of acceptance fee

15.—(1) The acceptance fee is calculated in accordance with paragraph (2) as a percentage of the gross capital value of the estate or the trust property on the date of acceptance or on such convenient date as the public trustee may select.

(2) Subject to paragraph (3), where the public trustee is acting—

(a) under a declaration of trust in favour of one beneficiary only; or

(b) as original, substituted or additional trustee of property to which an infant is absolutely entitled under a will (or other testamentary disposition) or on an intestacy,

the rate of the acceptance fee is—

(i) in respect of the first £50,000, 1.25 per cent;

(ii) in respect of any excess over £50,000, 0.5 per cent

but so that the fee payable is not less than £175.

(3) No acceptance fee will be charged in respect of property to which paragraph (2) applies if that property is immediately and directly derived from an estate or a trust in which the public trustee is acting.

(4) In all other cases in which the public trustee is acting as trustee the rate of the acceptance fee is one half the rate of the executorship fee but so that the fee payable is not less than £550.

PART 5 Administration fee

When administration fee payable

16.—(1) Subject to paragraph (3), an administration fee is payable, in accordance with articles 17 and 18, at the beginning of each financial year.

(2) An administration fee is payable in full even if the public trustee ceases to act in the estate or the trust, or any part of the estate or trust, in the course of that year.

(3) An administration fee is not payable—

(a) in respect of the period between the date of the acceptance of a trust or any part of a trust and the commencement of the next financial year; or

(b) in respect of any estate or part of an estate which the public trustee accepts as executor during the period in which the public trustee so acts.

Amount of administration fee

17.—(1) Subject to paragraphs (5) to (9), the administration fee is the relevant percentage of that multiple of £100 which is nearest to the net capital value of the estate or the trust fund as certified by the public trustee after such value has been estimated in accordance with paragraph (2).

(2) The net capital value of an estate or a trust fund is A + B – C where—

“A” is the value on the appropriate valuation date of the estate or the trust property other than interests not in possession and annuities or other terminable payments to which article 18 applies;

“B” is the value, on its acceptance valuation date, of any additional property becoming part of the estate or subject to the trust during the relevant period; and

“C” is such sum as the public trustee considers to be a reasonable deduction in respect of any estate or trust property distributed or disbursed by the public trustee during the relevant period.

(3) In valuing any property for the purposes of this article no deduction will be made for any debt specifically charged on it.

(4) The relevant percentage of the net capital value of the estate or the trust fund is—

(a) in respect of the first £30,000, 5 per cent;

(b) in respect of any excess over £30,000 up to £150,000, 3 per cent;

(c) in respect of any excess over £150,000 up to £375,000, 2 per cent;

(d) in respect of any excess over £375,000 up to £2,500,000, 1.25 per cent;

(e) in respect of any excess over £2,500,000 up to £3,000,000, 0.6 per cent; and

(f) in respect of any excess over £3,000,000, 0.3 per cent,

but so that the fee payable is not less than £375.

(5) Where the public trustee is acting exclusively as custodian trustee, the fee payable will be reduced by one half where the trust was accepted before 1st April 1980.

(6) Where the public trustee is acting exclusively as trustee of a settlement under the Settled Land Act 1925(4), the fee payable will be reduced by three quarters in respect of any part of the trust property which at the date on which the fee becomes payable is represented by land.

(7) Where the public trustee is acting as trustee under a declaration of trust for one beneficiary only, the fee payable will be reduced by five eighths.

(8) Where the public trustee is acting in a trust or an estate where an asset is represented by either—

(a) the principal private residence of a beneficiary who discharges all outgoings but pays no rent to the estate or trust; or

(b) a mortgage secured on the principal private residence of a beneficiary,

the fee payable will be reduced by three quarters in respect of that asset provided that in the event of a beneficiary occupying part only of a building such reduction will apply only to the value of that part of the building.

(9) Where the trust or estate has a net capital value of less than £3,000 (calculated in accordance with paragraph (2)) the fee payable will be 10 per cent of the net capital value.

(10) In this article—

“appropriate valuation date” means whichever of the following dates next precedes the date on which the fee is payable—

“relevant period” means the period between the appropriate valuation date and the date on which the fee is payable.

Annuities

18.  Where trust property includes an 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, the administration fee in respect of that annuity or other payment is charged at the rate of 5 per cent of the gross income without deduction of income tax or other outgoings, and no other fee is payable under this Part.