If you are the trustee of a California trust, you are entitled to compensation for your services. Unfortunately, not all trust instruments specifically state the amount of compensation that a trustee may receive for their services. In these instances, California law dictates that trustee compensation be “reasonable under the circumstances”. The standard compensation is not always easy to determine. Fortunately, an experienced Riverside trust attorney can help you decide what constitutes a reasonable amount to receive.
Steps to determining a reasonable trustee compensation:
- First, contact an experienced Riverside trust attorney for guidance in choosing your compensation rate.
- Carefully review the terms of the trust relating to trustee compensation.
- Next, carefully choose a compensation rate that is reasonable under the circumstances.
- While choosing a compensation rate, consider the factors that a court would apply when making a determination about reasonableness.
- Additionally. for reference, consider looking up the rate that is custom in your area. A good example of this would be a compensation of 1% annually of the trust’s total value.
- Determine and take into consideration the rates for trust administration charged by corporate trustees in your area.
- Lastly, consider seeking guidance from the California probate court for choosing your compensation rate.
Being the appointed trustee is a big responsibility that must be carefully carried out in a responsible manner. This includes choosing an appropriate amount of trustee compensation. Want to learn more about trustee compensation and other trust administration issues? Please view our free guide, The Insider’s Guide to California Probate and Trust Administration. Contact an experienced Riverside estate attorney for guidance throughout this process. Call our toll-free number today at (888) 443-6590.
AttorneyThe Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307