The Public Trustee (Fees) Order 2008

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(1), 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—

(a)

30th September 2006, in the case of any estate or trust in which the public trustee was acting on that date; and

(b)

in any other case, the acceptance valuation date of the estate or trust;

“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.

(1)

1925 c. 18, as amended by the Trusts of Land and Appointment of Trustees Act 1996 (c. 47).