Trustee Fees – Top 5 Things You Should Know

If you serve as trustee for a friend or family member, you understand how much work can go into the role. There are meetings with lawyers, accountants, and financial advisors, communications with beneficiaries, and possibly even hard assets like real estate to oversee. That does not include the ongoing headache of the responsibility associated with the role and the ever-looming possibility of liability if things go awry.

It is so much work that you should get paid for it. People are sometimes surprised when I advise them that they can be compensated for their work. “Wait, you mean I can get paid for this?” is a popular refrain when trustees realize that they can receive compensation for their role. That can often change the playing field. However, how much to get paid is another matter entirely, and it depends on what the trust says and the state laws that apply to the trust. Trustees should not make up a number on their own. They need to consult with an attorney who is familiar with trust administration. Hether Cahill, a probate litigator in Massachusetts, says that “trustee fees are often litigated because they appear unreasonable on their face, leaving beneficiaries wondering if the fees are appropriate and justified.”