As you begin the process of implementing an estate plan in California, you may be wondering whether you are entitled to trustee compensation for your time. In many cases, the issue of compensation will be specifically addressed in the trust instrument. If the exact amount of trustee compensation is not stated, however, it may be difficult for you to know what amount is appropriate. Administering a trust in Anaheim comes with a lot of responsibilities. You deserve to be compensated fairly. Fortunately, a knowledgeable Anaheim trust lawyer can help you decide what amount is acceptable for trustee compensation.
Ultimately, the probate court could consider whether or not the trustee compensation is reasonable if a beneficiary objects.
The court may consider the following factors:
- The gross income of the trust.
- The success or failure of the investments that were chosen by the trustee.
- Any unique skills or experiences that the trustee possesses, entitling him or her to a higher fee.
- Whether the trustee engaged in self-dealing.
- Whether the trustee displayed any disloyalty.
- The amount of time required to carry out the trustee duties.
- The amount of responsibility that the trustee must take on.
- The amount of risk that the trustee is exposed to.
- The amount that a corporate trustee in the area would charge for administering a trust of a similar size.
- Whether there were any extraordinary circumstances during the administration of the trust.
Taking into consideration these factors when determining your trustee compensation may help ensure that the fees you are paid are reasonable. Fortunately, you do not have to make these decisions alone. A knowledgeable Anaheim trust attorney can help you each step of the way during the trust administration process.
To learn more about how a revocable trust works, view our free DVD, Understanding the Revocable Living Trust – In Language that Anyone Can Understand in 8 Minutes. Our office of experienced Anaheim trust attorneys offers additional information and guidance through the trust and estate administration process. Call our office today at (714) 282-7488 for a consultation.