Public Trustee (Fees) Order 1999
| Jurisdiction | UK Non-devolved |
| Citation | SI 1999/855 |
| Year | 1999 |
1999 No. 855
TRUSTEES
The Public Trustee (Fees) Order 1999
Made 16th March 1999
Coming into force 1st April 1999
The Treasury, in exercise of the powers conferred on them by section 9 of the Public Trustee Act 19061, and with the sanction of the Lord Chancellor, hereby make the following Order:–
PRELIMINARY
Citation and commencement
1. This Order may be cited as the Public Trustee (Fees) Order 1999 and shall come into operation on 1st April 1999.
Interpretation
2. In this Order, unless the context otherwise requires:
“acceptance valuation date” in respect of any trust property means the date selected by the Public Trustee in relation to that property under paragraph 11(1) or 15(1);
“executor” means executor of a will or administrator of an estate however appointed;
“financial year” means the year ending 31st March;
“friendly society” means a society registered as a friendly society under the Friendly Societies Act 19742;
“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;
“statutory owner” and “tenant for life” have the meanings given by section 117(1) of the Settled Land Act 19253;
“superannuation scheme” means any scheme established for the provision of superannuation or other benefits for persons entitled to or eligible for such benefits under the scheme;
“will” includes any testamentary disposition; and
an article referred to by number alone means the article so numbered in this Order.
PART I
GENERAL
Incidence of fees
3. All fees shall be paid out of capital, except the following which shall be paid out of income:
(a) fees which the Public Trustee directs to be paid out of income by virtue of 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 fees 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) shall take the value of any estate or trust property to be the price which he estimates that property would fetch in the open market; and
(b) may treat the value of any estate or trust property as being that multiple of £10 which is nearest to his estimate of its exact value.
Time of payment
5. The Public Trustee may, if it appears just and reasonable in any case, agree to the postponement of any payment due in respect of any fee.
Commutation
6. Liability to pay all or any sums which may become due in respect of any fee, or any part of those sums, may be commuted by the Public Trustee in consideration of a payment which seems to him to represent the capital value of that liability.
Power to remit fees and settle disputes
7.—(1) The Public Trustee may remit so much as appears to him 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 he is acting.
(2) With the approval of the Treasury, the Public Trustee may–
(a)
(a) compromise any dispute about his right to a fee or about the amount due; and
(b)
(b) remit so much as appears to him equitable of any fee payable in respect of any estate or trust where–
(i) his duties have been or are likely to be exceptionally simple; or
(ii) the estate or trust is otherwise of an exceptional character.
PART II
EXECUTORSHIP FEE
When payable
8. An executorship fee shall be payable, in accordance with the provisions of this Part of this Order, upon 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 shall be 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
10. Where an executorship fee becomes payable in accordance with article 8 or 9 in respect of an estate, any part of which is not in possession or not readily realisable, the Public Trustee shall exclude the value of the property not in possession or not readily realisable 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) The executorship fee shall be calculated in accordance with the provisions of this article 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 shall be as follows:–
in respect of the first £50,000 |
5.5 per cent. |
in respect of any excess over £50,000 up to £75,000 |
4 per cent. |
in respect of any excess over £75,000 up to £100,000 |
2 per cent/ |
in respect of any excess over £100,000 upwards |
1 per cent. |
but so that the fee payable shall not be less than £550.
Provided that–
(a) where the main asset of an estate to be vested in a beneficiary or 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; and
(b) 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 £100 only shall be payable.
PART III
ACCEPTANCE FEE
When payable
12. An acceptance fee shall be payable, in accordance with the provisions of this Part of this Order, upon 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:
Provided that an acceptance fee shall not be payable in respect of any estate which the Public Trustee accepts as executor on or after 1st April 1977 during the period he 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 shall be 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
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) shall 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) shall, 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 shall be calculated in accordance with the provisions of this article 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) Where the Public Trustee is acting–
(a)
(a) under a declaration of trust in favour of one beneficiary only; or
(b)
(b) as original, substituted or additional trustee of property to which an infant is absolutely entitled under a will or on an intestacy,
the rate of the acceptance fee shall be as follows:–
in respect of the first £50,000 |
1.25 per cent. |
in respect of any excess over £50,000 |
0.5 per cent. |
but so that the fee payable shall not be less than £175. Provided that no acceptance fee shall be charged in respect of property to which this sub-paragraph applies if that property is immediately and directly derived from an estate or a trust in which the Public Trustee is acting.
(3) In all other cases in which the Public Trustee is acting as trustee the rate of the acceptance fee shall be at one half the rate of the executorship fee but so that the fee payable shall not be less than £550.
PART IV
ADMINISTRATION FEE
When payable
16. An administration fee...
To continue reading
Request your trial