California Trustee Compensation
California trustee compensation
Being chosen as a trustee by a loved one can be looked at as a great honor. A lot of thought goes into choosing someone responsible, detailed, and dedicated enough to manage the estate after their death, and they ultimately decided you.
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California trustee compensation
Being chosen as a trustee by a loved one can be looked at as a great honor. A lot of thought goes into choosing someone responsible, detailed, and dedicated enough to manage the estate after their death, and they ultimately decided you. Depending on the situation, the legal responsibilities associated with managing a trust can be challenging and time-consuming. You may be wondering if there is compensation available for trustees.
Do Successor Trustees Get Paid?
You may be wondering, do successor trustees get paid? California probate code allows for trustees to be paid for services provided on behalf of the Trust. As a trustee, your job is to manage the trust assets and distribute them to the beneficiaries as instructed in the trust documents. However, your duties may vary depending on the type of Trust.
How Much Does a Trustee Get Paid in California?
You may be wondering how much does a trustee gets paid in California? The probate code provides that trustees are entitled to a “reasonable fee,” but what exactly is considered reasonable? The Trustor may decide to limit the fee to a specific dollar amount or allow for the payment amount based on the services provided. If there is an issue with the trustee’s compensation, the court may ultimately have to get involved.
According to Rule 7.776 of the California Rules of Court, the following eight items are taken into consideration by the court regarding the compensation amount:
- The gross income of the trust estate;
- The success or failure of the trustee’s administration;
- Any unusual skill, expertise, or experience brought to the trustee’s work;
- The fidelity or disloyalty shown by the trustee;
- The amount of risk and responsibility assumed by the trustee;
- The time spent in the performance of the trustee’s duties;
- The custom in the community where the court is located regarding compensation authorized by settlors, compensation allowed by the court, or charges of corporate trustees for trusts of similar size and complexity; and
- Whether the work performed was routine or required more than ordinary skill or judgment.
Whatever the case, once common denominator is that all fees must be earned. That means payment can only be made after the trustee reasonably and adequately does the job of managing the trust administration. If the trustee is incapable of meeting these stipulations, then the trustee will not receive pay.
How Long Does a Trustee Have to Notify Beneficiaries in California?
You may be wondering how long does a trustee has to notify beneficiaries in California? The trustee must notify the beneficiaries of the Trust within 60 days of the trust owner’s death date. At this point, the beneficiaries can contest any part of the Trust within 120 days from the notice’s date.
If you have questions regarding fair and reasonable trustee compensation, you will benefit from speaking with an experienced trust attorney. Don’t hesitate to contact us and schedule a consultation.
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