Trustee Fee Agreement Template for Canada

The Trustee Fee Agreement is a crucial document used in Canadian trust arrangements to formalize the compensation structure between trustees and trust entities. This agreement becomes necessary when establishing new trust relationships or updating existing fee arrangements, ensuring compliance with federal legislation such as the Trust and Loan Companies Act and provincial Trustee Acts. The document typically includes comprehensive details about fee calculations, service scope, payment terms, and expense policies. It's particularly important in professional trust services where clear fee structures are essential for regulatory compliance and transparency. The agreement helps prevent future disputes by clearly documenting all aspects of trustee compensation and serves as a reference point for both trustees and trust administrators throughout the trust relationship.

1. Parties: Identification of the trustee and the entity/person engaging the trustee's services

2. Background: Context of the trust arrangement and purpose of the fee agreement

3. Definitions: Key terms used throughout the agreement including types of fees, services, and relevant trust property

4. Appointment and Acceptance: Formal appointment of the trustee and their acceptance of the role

5. Scope of Services: Detailed description of trustee services covered by the fee agreement

6. Fee Structure: Comprehensive breakdown of all fees, including base fees, percentage-based fees, and extraordinary fees

7. Payment Terms: Timing and method of fee payments, including invoicing procedures

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

9. Term and Termination: Duration of the agreement and circumstances for termination

10. General Provisions: Standard clauses including governing law, amendments, and notices