Commission/Compensation Payable to the Guardian
The guardian of the property of a minor is entitled to “reasonable” compensation pursuant to the provisions of Section 64.2-1208, Code of Virginia (1950). Special circumstances may dictate an analysis of the compensation to which a guardian is entitled. However, in the absence of unusual circumstances, the Henrico County Commissioner of Accounts has adopted the Guidelines for Fiduciary Compensation for the determination of reasonableness of commission.
That schedule of annual commissions (compensation) payable to a guardian is as follows:
- 1% (0.10) of the first $500,000.00 of assets at the beginning of the accounting period;
¾ of 1% (0.0075) of the next $500,000.00; and
½ of 1% (0.0050) over $1,000,000.00;
- Commission on assets of more than $10,000,000.00 held by the guardian for the benefit of a minor requires prior consultation with the Commissioner of Accounts and approval by the Commissioner unless an Order has been entered or the document creating the guardianship of the minor’s property provides otherwise.
- In addition to the commission based on principal at the beginning of each accounting period, an additional commission of 5% of non-investment income received during the accounting period is allowable. Generally, non-investment income consists of simple interest, periodic payments such as retirement benefits or social security payable as a result of the death of the parent, or some other periodic payment. It does not include capital gains on principal investments or reinvested dividends.
- Please be aware that the same rules applicable to decedents’ estates regarding employment of professionals to perform your fiduciary duties apply to Guardianship compensation, and the use of professionals to prepare your inventory or accounts may result in a reduction in the compensation to which you are entitled. You are advised to consult the “Guidelines For Fiduciary Compensation”.
Commission is to be pro-rated when the accounting is for a period of less than one (1) year.
Commission may not be taken in advance without prior approval of the Court or the Commissioner of Accounts, but should be taken as earned.
Special consideration will be given by the Commissioner of Accounts to any extenuating circumstances which justify an award of compensation to the guardian of the property of a minor for extraordinary services rendered by the guardian.
Commission should be taken during the accounting year and should not be accumulated for several years as it is difficult for the Commissioner’s office to track such commissions. The commissions are an expense of the estate for which a tax deduction may be allowable in each year, thus offsetting income to the minor’s estate on federal and state income tax returns.