Trustee Fee Agreement for Hong Kong

Trustee Fee Agreement Template for Hong Kong

A comprehensive legal document governed by Hong Kong law that establishes and regulates the fee arrangement between trustees and the trust entity or settlor. This agreement outlines the compensation structure for trustee services, including regular administrative fees, extraordinary service charges, and expense reimbursements. It complies with Hong Kong's Trustee Ordinance and related trust legislation, providing clear terms for fee calculations, payment schedules, and service scope while ensuring transparency and fairness in the trustee compensation arrangement.

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What is a Trustee Fee Agreement?

The Trustee Fee Agreement is a crucial document used in Hong Kong trust arrangements to formalize the compensation structure between trustees and the trust entity. This agreement becomes necessary whenever a trustee is appointed to manage trust assets and requires clear terms of remuneration. It specifically details all aspects of trustee compensation, including basic fees, extraordinary service charges, expense reimbursements, and payment terms. The document must comply with Hong Kong's trust laws, particularly the Trustee Ordinance and its amendments, which provide the regulatory framework for trustee duties and compensation. This agreement is essential for both professional trust companies and individual trustees, ensuring transparency in fee arrangements and helping prevent future disputes over compensation.

What sections should be included in a Trustee Fee Agreement?

1. Parties: Identification of the trustee and the party responsible for paying the fees (typically the trust, settlor, or beneficiaries)

2. Background: Context of the trust arrangement and the need for trustee services

3. Definitions: Key terms used throughout the agreement including 'Trust Property', 'Services', 'Fee Period', and 'Extraordinary Services'

4. Appointment and Scope: Confirmation of trustee appointment and detailed description of trustee services covered by the fee arrangement

5. Fee Structure: Detailed breakdown of regular trustee fees, calculation methods, and payment terms

6. Payment Terms: Timing of payments, invoicing procedures, and payment methods

7. Extraordinary Services and Additional Fees: Definition and treatment of services beyond regular trustee duties

8. Expenses and Disbursements: Treatment of out-of-pocket expenses and third-party costs

9. Fee Review and Adjustment: Mechanism for periodic review and adjustment of fees

10. Termination: Circumstances and procedures for terminating the fee agreement

11. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction for disputes

What sections are optional to include in a Trustee Fee Agreement?

1. Value-Based Fee Calculations: Include when fees are calculated as a percentage of trust assets

2. Performance Fees: Include when additional fees are tied to investment performance or other metrics

3. Multiple Trustee Provisions: Include when there are co-trustees and fee splitting arrangements

4. Foreign Currency Provisions: Include when trust assets or fee payments involve multiple currencies

5. Tax Provisions: Include when specific tax treatments of fees need to be addressed

6. Confidentiality: Include when specific confidentiality requirements beyond standard trustee duties are needed

7. Force Majeure: Include when specific provisions for extraordinary events affecting fee arrangements are needed

What schedules should be included in a Trustee Fee Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of all fee components, rates, and calculation methods

2. Schedule 2 - Regular Trustee Services: Comprehensive list of services covered under the regular fee arrangement

3. Schedule 3 - Extraordinary Services: List of services considered extraordinary and their associated fee basis

4. Schedule 4 - Expense Categories: Classification of different types of expenses and their treatment

5. Appendix A - Fee Calculation Examples: Illustrative examples of how fees are calculated in various scenarios

6. Appendix B - Service Level Standards: Performance standards and service levels linked to fee arrangements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Relevant Industries

Financial Services

Wealth Management

Private Banking

Trust Services

Corporate Services

Family Office Services

Asset Management

Estate Planning

Pension Fund Management

Investment Services

Relevant Teams

Legal

Compliance

Trust Administration

Finance

Risk Management

Operations

Client Services

Corporate Services

Wealth Management

Private Client Services

Relevant Roles

Trust Officer

Trust Administrator

Compliance Officer

Legal Counsel

Trust Manager

Relationship Manager

Financial Controller

Trust Accountant

Company Secretary

Risk Manager

Trust Operations Manager

Private Client Manager

Senior Trust Officer

Managing Director - Trust Services

Head of Trust Administration

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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