Del. R. Ch. Ct. 132
As used in this rule the terms "trustee" or "trustees" mean testamentary trustees, trustees for mentally ill persons, trustees by appointment of the Court, and other trustees, and fiduciaries whose duties call for the care and management of property (referred to herein as the "trust estate" or the "trust"). This rule shall not apply to guardianship.
As used in this rule the term "commission period" means a period covering 1 month, 3 months, 6 months or a year.
Subject to the provisions of any valid agreement determining compensation, and subject in any case to increase or decrease by the Court for cause appearing sufficient to the Court a trustee shall be entitled to the following commissions for services:
6% on the first $20,000 of income;
3.5% on the next $10,000 of income;
3% on the next $270,000 of income;
2% on all income over $300,000.
5/10 of 1% on the first $100,000 of principal;
3/10 of 1% on the next $100,000 of principal;
2/10 of 1% on the next $500,000 of principal;
1/10 of 1% on all principal over $700,000.
The principal commissions shall be computed for each commission period on the basis of the fair value of the trust estate, which shall be determined either (1) for any commission period less than annually by an appraisal made by the trustee and certified to the Court as of the last business day of the commission period selected; or (2) by the value theretofore determined as a part of a periodic review of trusts by the trustee, such review to be of a date not more than 12 months prior to the date of making such annual charge. Periodic reviews to be eligible for use for valuation purposes under clause (2) shall be made approximately at 12-month intervals and the date of such reviews shall not vary more than 60 days from 1 year to the next until the termination of the trust, as of which date a final valuation shall be made.
Principal received or withdrawn during any commission period shall be included in the total valuation of the trust estate, but, as to commission periods in excess of 3 months, its value shall be adjusted proportionately for each 3-month period in such commission period that preceded the date of its receipt or followed the date of its withdrawal.
A trustee shall, with respect to any particular trust, select 1 of the commission periods permitted by these Rules and shall adhere to the period selected in computing successive periodic principal commissions for that trust; provided that a trustee may thereafter change such commission period upon notice to the beneficiaries of the trust who are then entitled to receive distributions of income or principal, and to any cotrustees or trust advisors for the trust involved. In any periodic accounting which a trustee is required to file under Rule 114, such fair value so computed shall be certified to the Court in the form of written statements by the trustee, 1 for each commission period for which principal commissions are claimed. Each such certification shall contain a complete list of assets of the principal of the trust estate, the amount of the fair value of each asset, a statement showing which of the methods above referred to has been adopted as a basis of the valuation and the date of such valuation.
The charge aid collection of principal commissions for 1 or more commission periods may at any time from time to time be deferred; in such case, a notion shall be entered on the account submitted to the Court showing the accumulated amount of such principal commissions as computed but not actually charged.
A trustee may not compute or charge periodic principal commissions in which event the trustee shall, at the time of distribution or of termination of the trust or of transfer to a successor trustee, be allowed principal commissions computed under the provisions of paragraph (e) of this rule, or in lieu thereof the trustee may at such time or times apply to the Court for appropriate commissions on principal, which the Court in its discretion may allow and which need not be limited to the amounts of principal commissions at termination set forth by paragraph (e) of this rule.
Notwithstanding an earlier election not to compute or charge periodic principal commissions, a trustee may elect prospectively to compute, charge and collect such commissions at any time during the administration of the trust estate.
Periodic principal commissions may be collected less frequently than the commission period selected for their computation and charge.
When the trust includes real estate, the income commission specified in paragraph (a) of this rule shall apply to gross rents collected by an outside agent and paid to the trustee. If such rents are collected directly by the trustee, the trustee shall be allowed a commission of 8% of gross rentals received.
In the discretion of the Court, additional and special commissions may be allowed for unusual and extraordinary services.
5% of principal on the first $50,000;
3.6% of principal on the next $50,000;
2.3% of principal on the next $900,000;
1% of principal on all over $1,000,000.
Provided, however, that if at the time of distribution or transfer the trust shall have been administered by the trustee for a period less than 10 years, such principal commissions shall be reduced to the following percentages of the rates hereinabove specified:
30% if termination occurs within 3 years;
40% if termination occurs after 3 and before 4 years;
50% if termination occurs after 4 and before 5 years;
60% if termination occurs after 5 and before 6 years;
70% if termination occurs after 6 and before 7 years;
80% if termination occurs after 7 and before 8 years;
90% if termination occurs after 8 and before 9 years;
100% if termination occurs after 9 years.
There shall be deducted from such principal commissions the sum of all periodic principal commissions theretofore charged and collected by the trustee with respect to the trust estate or, in the case of a partial distribution, with respect to the distributable portion of the trust estate. If such sum exceeds the aggregate principal commission allowable under this paragraph, the trustee shall not be obligated to repay such excess but shall not ordinarily be allowed any additional principal commission upon termination of the trust.
Such aggregate principal commission shall be computed on the fair value of the trust estate at the time of partial or complete distribution or of transfer to a successor trustee. Such fair value shall be determined by an appraisal made by the trustee as of the date of partial or complete distribution or transfer. In any accounting which a trustee is required to file, such fair value so determined shall be certified to the Court in the form of written statements by the trustee filed with and as a part of the final account of the trustee, or in the case of partial distribution or transfer, as a part of the next account of the trustee required under these rules. Each such certification shall contain a complete list of the assets of the principal of the trust estate, the amount of the fair value of each asset, the date of such valuation and a statement of the amounts previously allowed the trustee as periodic principle commissions under this rule. The time or date of partial or complete distribution or transfer shall mean the date of the event that caused the partial or complete termination or transfer of the trust: e.g., the date a beneficiary dies, the date a beneficiary comes of age, or the date on which a written instrument is delivered to the trustee or a Court order is entered authorizing or directing the transfer to a successor trustee.
Del. R. Ch. Ct. 132