How Much Can a Trustee Be Paid in California?
California law allows successor trustees to receive reasonable compensation for their services unless the trust document specifically prohibits or limits it. Unlike probate executor fees (which are set by statute), trustee compensation in California is determined by what is 'reasonable' under the circumstances. Courts have generally interpreted reasonable compensation as approximately 1% to 2% of the trust's total value per year of administration, or a reasonable hourly rate for time actually spent, whichever better reflects the complexity of the work.
Going Deeper
Trustee compensation is paid from trust assets before distributions to beneficiaries. Keep a contemporaneous time log from day one, recording the date, time spent, and nature of every significant task. This log is essential if your compensation claim is challenged by beneficiaries. Trustees who claim compensation without supporting time records are at a significant disadvantage in any dispute. Disclose your compensation claim in the final accounting to beneficiaries and obtain their agreement or court approval before paying yourself.
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