That includes things like travel expenses, storage fees, taxes, insurance or other expenses they incur related to the management of the trust. Those expenses are reimbursable, regardless of whether the trust document specifies any guidelines for reimbursement.

What is a reasonable trustee fee in California?

Most corporate Trustees will receive between 1% to 2%of the Trust assets. For example, a Trust that is valued at $10 million, will pay $100,000 to $200,000 annually as Trustee fees. This is routine in the industry and accepted practice in the view of most California courts.

What percentage does a trustee get paid in California?

How much should a trustee of a trust be paid in California?

Under the California Probate Code section 16420 (a) (7), the court can reduce or deny compensation of the Trustee if the Trustee commits a breach of Trust. If the Trustee causes a loss of $10,000, and the Trustee is requesting Trustee’s fees of $10,000, the court can deny that fee request to make up for the harm caused to the Trust.

How are trustee fees set in a trust?

It is important for the person considering a trust to realize that one retains a great deal of control over the terms of most trusts…so long as public policy is not violated, one can impose almost any condition on the Trust and Trustees, including setting what fees should be paid. Indeed, one can provide that no fees should be paid to Trustees.

Can a trustee of a trust not be paid?

By earned, we mean that all fees must be paid after the Trustee properly, and reasonably, manages the Trust administration. If a Trustee does not work, then the Trustee will receive no pay no matter what the circumstances.

Can a trustee be fined for breach of trust?

When a Trustee fails to follow the Trust terms, fails to make Trust distributions, or steals money or other assets from the Trust, then a breach has occurred. The court has a number of different punishments it can impose for breach of Trust, and disallowing Trustee’s fees is one of them.