A trustee accepts significant legal responsibilities when administering a trust, and compensation is often provided in recognition of the time, effort, and expertise required to perform those duties properly. Trustee compensation can vary depending on the terms of the trust, the complexity of the trust assets, the nature of the trustee’s responsibilities, and applicable law. This guide explains the principles that govern trustee compensation and helps readers understand when compensation may be appropriate and how it is commonly determined.

Inside this guide, you will learn how trustee fees are established, the factors that may influence reasonable compensation, and the differences between individual and professional trustees. The guide also examines fiduciary obligations, recordkeeping requirements, beneficiary concerns regarding trustee fees, and common issues that may arise when compensation is disputed. Whether you serve as a trustee, are considering accepting a trustee appointment, or are a beneficiary seeking a better understanding of trust administration, this guide provides a practical overview of trustee compensation principles.