New Jersey Mortuary Science Practice Exam

What is the maximum commission trustees of a pooled trust fund can receive annually?

1. No more than 0.5%

2. 1.5% per annum

3. 2% per annum

4. No more than 1% per annum

The correct answer is: No more than 1% per annum

The annual commission that trustees of a pooled trust fund can receive is capped at 1% per annum. This limit is established to ensure that a significant portion of the trust's assets is allocated toward the beneficiaries rather than being consumed by administrative fees. The rationale behind this specific percentage is to balance administrative costs while maximizing the financial benefit and support provided to beneficiaries. Trustees, given their fiduciary responsibilities, must act in the best interests of the trust and its beneficiaries. By enforcing a cap on commissions, the regulatory framework seeks to promote transparency and accountability in the management of trust funds, protecting the interests of those who rely on the trust for support. Options suggesting higher percentages would violate regulatory standards aimed at safeguarding trust assets for the benefit of the beneficiaries.