What would be a fair fee to charge someone to manage an estate that involves writing 80 or 90 checks a year, to pay for two monthly rents and utilities, car and renters ins. ?

I guess they would have to receive mail and send in payments , so I guess add envelopes and stamps.

$1,000.00 per month? $2,000.00 per month ?

$2k per month just to check the mail and write a half dozen checks?! You can hire me!

In all seriousness, that sounds like only a couple of hours of work total per month. $1k or $2k per month is much too high for that.

Figure that a secretary or personal assistant can serve much the same function, and earns on average ~$15 per hour. Going by that, it would be less than $100 per month. Maybe $1k per year, if you want a nice, round number.

“Manage” implies more than mere bookkeeper duties.

Couldn't most of that be set up as direct-debit from the checking account?

I'd do that for $2K/mo.

quote:

Originally posted by JALLEN:
“Manage” implies more than mere bookkeeper duties.

If you're entrusting them with discretionary decision-making powers, full access to a large estate's considerable finances, and expecting them to help grow the estate's value, that would obviously require greater responsibility and knowledge, and corresponding greater pay. That's true "estate management".

But based on the details provided, it sounds like they're simply looking for someone to make sure that six or so basic monthly bills are received and paid on time. That scenario doesn't require true "estate management", with a team of lawyers, financial planners, etc. That is mere bookkeeping.

It could be as simple as setting up an account with limited funds replenished regularly, giving them access to a checkbook for that account, and paying them for a few hours' work each month as a contract secretary/personal assistant/basic bookkeeper.

^^ JALLEN

It's one thing to assume you're just paying for a mail room clerk or admin but reality is you probably have a lawyer or trust administrator involved that gets paid, as well as their staff. You could easily be paying $100-300/hr or whatever their billable rate is. It's definitely going to be a hell of lot more than min. wage and cost of postage, I can tell you that with confidence.

It depends on the size of the estate, and the area - around here, it can be 5% of the estate/all monies transferred in and out - and its not unheard of for thieves to "churn" estates to rack up fees.

quote:

Originally posted by bigeinkcmo:
^^ JALLEN

It's one thing to assume you're just paying for a mail room clerk or admin but reality is you probably have a lawyer or trust administrator involved that gets paid, as well as their staff. You could easily be paying $100-300/hr or whatever their billable rate is. It's definitely going to be a hell of lot more than min. wage and cost of postage, I can tell you that with confidence.

This is why I avoid assuming by getting more details before evaluating what an appropriate cost might be reasonable and just.

Jallen is much smarter than I, listen to him.

$400,000.00 estate.
two beneficiaries in their 60's.

Whether it's $100 or $10,000 per month, this is a good example of why you want to get the estate wrapped up as soon as possible.

Even outside the issues of money, I'd want to be in the role of executor for the shortest possible time.

quote:

Originally posted by bendable:
$400,000.00 estate.
two beneficiaries in their 60's.

Is there court supervision, like a conservatorship, etc. or is it a private trust? What is the relationship of the manager/bookkeeper to the beneficiaries?

Who oversees the investment of these funds? Who oversees the bookkeeper to make sure there is no embezzlement?

private trust, relationship: sibling to the two beni's

quote:

Originally posted by bendable:
private trust, relationship: sibling to the two beni's

It’s hard to be hard and fast, but I think I would be inclined to suggest the managers time is worth whatever it is, plus actual costs, stamps, office supplies which should be minimal. Either the manager is doing the investment, or a paid advisor is.

I would also strongly insist on an annual audit by a CPA firm unrelated to any of the interested parties.

thanks,

quote:

Originally posted by JALLEN:

quote:

Originally posted by bendable:
private trust, relationship: sibling to the two beni's

It’s hard to be hard and fast, but I think I would be inclined to suggest the managers time is worth whatever it is, plus actual costs, stamps, office supplies which should be minimal. Either the manager is doing the investment, or a paid advisor is.

I would also strongly insist on an annual audit by a CPA firm unrelated to any of the interested parties.

Well, the CPA firm that does the audit would be happy to handle it all. I speak from experience when I say they really do know what to charge, and it ain't cheap. Get a ballpark quote for an annual audit and an add-on figure for management, then you do it for 1/4 of what the add-on quote is and still come out way ahead.

quote:

Originally posted by cne32507:

quote:

Originally posted by JALLEN:

quote:

Originally posted by bendable:
private trust, relationship: sibling to the two beni's

It’s hard to be hard and fast, but I think I would be inclined to suggest the managers time is worth whatever it is, plus actual costs, stamps, office supplies which should be minimal. Either the manager is doing the investment, or a paid advisor is.

I would also strongly insist on an annual audit by a CPA firm unrelated to any of the interested parties.

Well, the CPA firm that does the audit would be happy to handle it all. I speak from experience when I say they really do know what to charge, and it ain't cheap. Get a ballpark quote for an annual audit and an add-on figure for management, then you do it for 1/4 of what the add-on quote is and still come out way ahead.

Have an audit.