§ 2312. Commissions of corporate trustees, including when acting as

donees of powers during minority or donees of power in trust

1. If the will or lifetime trust instrument makes provisions for
specific rates or amounts of commissions (other than a general reference
to commissions allowed by law or words of like import) for a corporate
trustee, or, if a corporate trustee has agreed to accept specific rates
or amounts of commissions, a corporate trustee, whether as trustee or as
donee of a power in trust, including for purposes of this section as
donee of a power during minority, created under the provisions of the
will or lifetime trust instrument, shall be entitled to be compensated
in accordance with such provisions or agreement, as the case may be.

2. For trusts having a principal value of more than four hundred
thousand dollars and as donee of a power in trust where the property
subject to the power, including for purposes of this section the
property subject to a power during minority, has a principal value of
more than four hundred thousand dollars and subject to the provisions of
subdivision 4 of this section, if the will or lifetime trust instrument
does not make provisions for specific rates or amounts of commissions,
or, contains only a general reference to commissions allowed by law or
words of like import, a corporate trustee shall be entitled to such
commissions as may be reasonable, and the court, upon application of a
person interested in the trust or in the fund held by the corporate
trustee as donee of a power in trust, may review the reasonableness of
the commission of such corporate trustee.

3. Subject to the provisions of paragraph (a) of subdivision 4 of this
section and regardless of the principal value of the trust: (a) during
the continuance of a trust created solely for public, religious,
charitable, scientific, literary, educational or fraternal uses and
during the period of continuance of such a trust after the termination
of a life use or uses a corporate trustee shall be entitled to and may
retain commissions from income in accordance with the provisions of
subdivision 1 or 2 hereof, as the case may be.

(b) In the case of a trust created solely for public, religious,
charitable, scientific, literary, educational or fraternal uses a
corporate trustee shall not be entitled to any commission from
principal.

(c) In the case of such a trust which continues after the termination
of the measuring life use or uses a corporate trustee for the period of
the measuring life use or uses shall be entitled to commissions from
income and principal according to the provisions of subdivision 1 or 2
hereof, as the case may be, and except in respect of principal paid out
to a charity or for charitable uses shall be entitled to a commission
for distributing all sums of principal in accordance with the provisions
of subdivision 1 or 2 hereof, as the case may be.

4. Notwithstanding anything contained in this chapter, the estates,
powers and trusts law or any other provision of law to the contrary,

(a) Except as otherwise provided by paragraph (b) of this subdivision
and subdivision three of this section, a corporate trustee of any trust
created under will or lifetime trust instrument, or as donee of a power
in trust created under will or lifetime instrument, whether in existence
on or after the effective date of this section, shall be entitled to
receive at least the compensation provided for an individual trustee
under subdivisions 1, 2, 5 (but only as trustee), 6, 7 and 12 of section
2308 and subdivisions 1, 2, 5 (but only as trustee), 6, 7 and 8 of
section 2309, as the case may be, in effect after the effective date of
this section, at the time and in the manner provided by such sections,
unless the will or lifetime trust instrument or an agreement between the
trustee and the testator or grantor or by the trustee shall provide
otherwise.

(b) A corporate trustee shall, in addition to the compensation
permitted by the provisions of paragraph (a) of this subdivision, be
entitled to annual commissions at the rate of not more than $12.35 per
thousand or major fraction thereof, in lieu of the annual commissions
provided under paragraph (a) of this subdivision, on trusts having a
principal value of not more than four hundred thousand dollars and shall
be entitled to annual commissions at the same rate as donee of a power
in trust where the property subject to the power has a principal value
of not more than four hundred thousand dollars, and such annual
commissions shall be deemed reasonable compensation, unless the will or
lifetime trust instrument or an agreement between the corporate trustee
and the testator or grantor or by the corporate trustee shall provide
otherwise. A corporate trustee shall be entitled to receive such
commissions from time to time during the trust or calendar year and
shall otherwise be governed by the provisions of sections 2308 and 2309,
as the case may be, in effect from time to time.

5. Unless the will or lifetime trust instrument expressly provides
otherwise, the commissions allowable by subdivision 1, 2 or 4 hereof, as
the case may be, shall be payable one-third from the income of the trust
or from the income of the property subject to the power in trust and
two-thirds from the principal of the trust or from the property subject
to the power in trust. However, in the case of a trust whose definition
of income is governed by section 11-2.4 of the estates, powers and
trusts law or a charitable remainder annuity trust or a charitable
remainder unitrust, as defined in section six hundred sixty-four of the
Internal Revenue Code of nineteen hundred eighty-six, as amended, such
commissions shall be payable from the principal of any such trust after
allowance for the annuity or unitrust amounts and shall not be payable
out of such annuity or unitrust amounts.

6. The commissions allowed by subdivision 1, 2 or 4 thereof, as the
case may be, may be retained, at any time or from time to time during
the year in which such commissions are earned, by a corporate trustee,
provided it furnishes annually as of a date no more than 30 days prior
to the end of the year selected by the corporate trustee, to each
beneficiary currently receiving income, and to any other beneficiary
interested in the income and to any person interested in the principal
of the trust who shall make a demand therefor, and, when acting as donee
of a power in trust, to the beneficiary of the power in trust, a
statement showing the principal assets or assets subject to the power in
trust on hand on that date, and at least annually or more frequently if
the trustee so elects, a statement showing all his or her receipts of
income and principal or of property subject to the power in trust during
the period with respect to which the statement is rendered including the
amount of any commissions retained and the basis upon which the
commissions were computed. A corporate trustee shall not be deemed to
have waived any commissions by reason of its failure to retain them at
the time when it becomes entitled thereto; provided however that
commissions payable from income for any such year shall be allowed and
retained only from income derived from the trust during such year and
shall not be supplied from income on hand in respect of any other year.
If a beneficiary receiving income or a beneficiary of a power in trust
of which the corporate trustee is donee does not desire to be furnished
with any such statements his or her advice to the trustee to that effect
in writing shall thereafter excuse the corporate trustee from furnishing
such statements to the beneficiary unless and until the beneficiary
requests such annual statements from the trustee. Upon enactment of, and
subject to subdivision 1 of this section, a corporate trustee shall
continue to receive commissions in the manner provided for a trustee or
when acting as donee of a power in trust in the manner provided for a
donee of a power in trust under sections 2308 and 2309, as the case may
be, in effect immediately before the effective date of this section
until the end of the then current trust or calendar year, and
thereafter, a corporate trustee may receive commissions in accordance
with the provisions of subdivision 2 or 4 of this section. A corporate
trustee shall not change from the commissions provided for by
subdivision 2 or 4 of this section, as the case may be, during a trust's
calendar or fiscal year or the calendar year in the case of a power in
trust but a corporate trustee may change from the commissions provided
for by subdivision 2 to the commissions provided for by subdivision 4 of
this section, or vice versa, only at the beginning of a calendar or
fiscal year of a trust or a calendar year in the case of a power in
trust, as the case may be.

7. On the settlement of the account of any trustee or donee of a power
in trust under a will or lifetime trust instrument, in addition to the
commissions provided for by this section, the court must allow to the
corporate trustee including a corporate trustee acting as donee of a
power in trust the corporate trustee's reasonable and necessary expenses
actually paid by the trustee.

8. The value of any property to be determined in such manner as
directed by the court and the increment thereof received, distributed or
delivered, shall be considered as money in making computation of
commissions. Whenever any portion of the dividends, interests, rents or
other income payable to a trustee or donee of a power in trust is
required by any law of the United States or other governmental unit to
be withheld by the person paying it for income tax purposes, the amount
so withheld shall be deemed to have been collected.

9. A trustee who prior to September 1, 1966 shall have received the
maximum amount of commissions on principal permitted by subdivision 8 of
section 285-a of the surrogate's court act as that subdivision existed
prior to that date, shall not be entitled to annual principal
commissions for the period from the date when he or she shall have
received such maximum to September 1, 1966, but shall be entitled to
receive commissions from and after September 1, 1966 at the rates and in
the manner provided in section 2308 as in effect immediately before
enactment of this section. A trustee who is entitled to annual principal
commissions pursuant to section 285-a of the surrogate's court act as it
existed prior to September 1, 1966, but has not received them, may
receive an amount of commissions not in excess of the amount he or she
would have been entitled to if he or she had taken such commissions, and
be entitled to receive in addition commissions from and after September
1, 1966 at the rates and in the manner provided in section 285-a of this
act.

10. A trustee who has been acting prior to July 1, 1956 shall be
entitled to have commissions on principal and income theretofore
received by him or her computed, allowed and paid under the methods and
at the rates set forth herein, except as follows:

(a) If prior to July 1, 1956 a trustee has been allowed or has
retained commissions for receiving and paying out or for distributing
any item of principal he or she shall be entitled to no further
commissions on the item.

(b) If prior to July 1, 1956 a trustee has been allowed or retained
commissions on any item of principal received but not paid out or
distributed by him or her he or she shall be entitled to no further
commissions for receiving the item.

(c) Any trustee who became entitled to an annual principal commission
under subdivision 1 (b) of section 285-a of the surrogate's court act as
it existed prior to April 1, 1948 and who has not retained such
commission may retain an amount equal to one-half of such annual
principal commission. A trustee who because of the provisions of
subdivision 2 of section 285-a of the surrogate's court act as it
existed prior to April 1, 1948 either was not entitled to retain an
annual principal commission under subdivision 1 (b) thereof or was
required to credit such annual principal commission against his or her
commission for receiving principal, may retain an amount equal to
one-half of such annual principal commission. If a trustee has been
allowed by decree or has retained any such annual principal commission
one-half the amount thereof shall be deducted from the amount of
commissions to which the trustee would otherwise be entitled under the
provisions of subdivision 1 of surrogate's court procedure act section
2308.

(d) The annual principal commissions allowed by subdivision 3 of
surrogate's court procedure act section 2308 as it existed on September
1, 1967 shall not be allowed by decree or retained in respect of any
trust year ending prior to April 1, 1948, but for any trust year ending
on or after April 1, 1948 and prior to July 1, 1956, the annual
principal commission which may be allowed by decree or retained shall be
computed at the rates in effect on the date such trust year ended.

(e) If prior to July 1, 1956 a trustee has been allowed by decree or
has retained commissions on any item of income received and paid out by
him or her prior to September 1, 1943 or on any item of income received
by him or her subsequent to September 1, 1943 he or she shall be
entitled to no further commission on the item.

(f) For purposes of this section, the term "donee of a power in trust"
shall mean any such donee including a donee of a power during minority
who is a corporate fiduciary and the term "property subject to the power
in trust" shall include property subject to a power during minority.