California law provides that both individual and corporate trustees are entitled to compensation for their services as trustee. Corporate trustees, sometimes referenced as professional trustees, are different than individuals - like an aunt or an uncle administering a trust.
Independent trust companies and large banks have professional trust departments. These professional trustees often administer trusts in post-death circumstances. What do these professional trustees charge for their services?
How much are trustees paid?
- Trustees are entitled to reasonable compensation.
- All-in-one fees will usually charge between 1% and 2% of total trust assets.
- Asset categories like real estate or a closely-held business might require a higher percentage fee.
Professional trustees publish their own fee schedule - usually based upon a percentage of the assets under administration. All-in-one fees will usually start between 1% and 2%. Asset categories like real estate or a closely held business that require more trustee involvement weigh toward a higher percentage fee.
In any event, trustees are entitled to reasonable compensation. If the fees are challenged, the court will exercise its discretion in determining the fee against the prevailing rules and practices of the local jurisdiction.