HB 1107 -- COMPENSATION OF TRUSTEES

This bill specifies that a trustee is entitled to reasonable
compensation, which may include fees for the administration of
income and principal.  The bill's compensation provisions do not
apply to the extent of any inconsistency between its provisions
and the provisions of the will or trust instrument.  Beginning
August 28, 1998, the bill's provisions apply to all testamentary
and inter vivos trusts regardless of whether the trust was
established before or after that date.

HB 1107 -- COMPENSATION OF TRUSTEES (May, 108)

This bill specifies that a trustee is entitled to reasonable
compensation, which may include fees for the administration of
income and principal.  The bill's compensation provisions do not
apply to the extent of any inconsistency between its provisions
and the provisions of the will or trust instrument.  The bill's
provisions apply to all testamentary and intervivos trusts
beginning August 28, 1998.

FISCAL NOTE:  No impact on state funds.

HB 1107 -- COMPENSATION OF TRUSTEES

SPONSOR:  May (108)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Judiciary by a vote of 17 to 0.

This bill specifies that a trustee is entitled to reasonable
compensation, which may include fees for the administration of
income and principal.  The bill's compensation provisions do not
apply to the extent of any inconsistency between its provisions
and the provisions of the will or trust instrument.  The bill's
provisions apply to all testamentary and intervivos trusts
beginning August 28, 1998.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this bill is necessary to allow
a trustee to be compensated for the administration of both
income and principal.  An old Missouri case finds 5% of the
trust's income to be reasonable compensation and does not
adequately address fees for administering income and principal.

Testifying for the bill were Representative May (108); and Bob
Langworthy.

OPPONENTS:  There was no opposition voiced to the committee.

Katharine Hickel, Legislative Analyst

HB 1107 -- Compensation of Trustees

Sponsor:  May (108)

This bill specifies that a trustee is entitled to reasonable
compensation, which may include fees for the administration of
income and principal.  The bill's compensation provisions do not
apply to the extent of any inconsistency between its provisions
and the provisions of the will or trust instrument.  The bill's
provisions apply to all testamentary and intervivos trusts
beginning August 28, 1998.