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A surcharge means:

  • An additional amount of money charged over a tax, charge, or cost, that may arise because it was initially omitted or as a penalty for late payment. For example, paying a bill late may cause a surcharge for the client over the due amount.
  • In the context of a surcharge action, when the court orders the fiduciary to pay an amount of money to repair the damages caused to the beneficiary because the fiduciary has breached its fiduciary duties.

[Last updated in October of 2021 by the Wex Definitions Team]