Being named as trustee of a trust is a serious responsibility. As such, a trustee is entitled to collect a reasonable fee for the administration of their numerous duties. Although a trustee is compensated out of the trust for reasonable expenses, how a trustee is compensated for their time and effort may vary. Although the following list is not exhaustive, it indicates some of the ways a trustee’s payment can be determined.
- If a trustee is a professional, an accountant, for instance, he might be compensated at his usual professional rate.
- Trustees might receive compensation according to instructions included in the trust agreement.
- A trustee might be compensated in accordance with a wholly separate written agreement between the trustee and the trust grantor.
- If the trustee is also a beneficiary, the trust may not provide for compensation, instead only providing for reimbursement of expenses.
- Or compensation may be in accordance with state law.
No matter what fees or payments are agreed upon for a trustee, the judge in the probate court has the power and authority to review, revise, or change the trustee’s compensation. This usually happens when a dissatisfied beneficiary makes a complaint. In addition to a trustee’s many fiduciary responsibilities, serving as trustee carries some measure of personal liability. A trustee faces personal liability if he/she is found to have failed to exercise ordinary care in the management of the trust’s property or if he/she fails to take action where he/she should have done so.
As indicated, the role of trustee is a serious one. Because each case may vary greatly, this article is intended only to serve as a guideline. If you’re preparing to name a trustee for your trust and want to ensure they are paid fairly for their time and effort, you need professional, legal assistance. Similarly, if you’ve been tasked with serving as a trustee, you’ll want to receive fair compensation for your time, energy, and effort of managing and settling your loved one’s trust. At Grissom Law, LLC, we have the knowledge and experience you need to help protect your interests. Our estate planning experts are here for you. Contact us today or call us at 678-781-9230 to schedule an appointment to get the help you need, the compensation you merit, and the peace of mind you deserve.
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This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.