K served as trustee of his brother’s sizeable estate. His brother passed away when his two children were still young.

Because it was a large estate, consisting of a portfolio of stocks and bonds, as well as an office building, K devoted full-time (40 hours per week) to the management of the estate. He did not hold down any other job.

The question arose as to whether K’s compensation as trustee of the estate was net earnings from self-employment for social security purposes.

Typically, a professional fiduciary, who manages several estates as his or her full-time profession, will have earnings credited to their social security account. On the other hand, a person who handles the management and final distribution of a relative’s or close friend’s estate, will not have earnings from their services that are creditable as social services wages.

However, in the instant case, because of the size of the estate and the need for years of ongoing full-time management of the assets of the estate, K’s remuneration as trustee of his brother’s estate was countable as social security earnings.

See Social Security Ruling (SSR) 65-10.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.