Legal Question in Wills and Trusts in California

Re: Fees

Where the trust is silent, compensation is reasonable. It is not the same as an executor fee. It can be based on an hourly rate or other method of determining fair compensation, or set by the court. It is best to have the beneficiaries agree on the amount of compensation to avoid expensive court disputes. See Sections 15680 -15688 of the Probate Code.

Re: Fees

This can be stated in the trust instrument. If not, then the fees are "reasonable," which in California is somewhere between .5 and 1.0 percent of the value of the trust property, plus additional fees for "extraordinary" work.

Because this is an irrevocable trust, and there are many types, it's best to check with a professional trustee's fee schedule to get an idea of what the going rate is.

Re: Fees

I agree with Wayne Smith and want to underscore what he is telling you. As the Trustee, it is vital for your peace of mind that you stay in good relationship to your beneficiaries. Talk it over with them and get them to agree with whatever you think is fair. This is a good opportunity to open the doors of communication in a situation that can easily becomes hostile. As trustee you have to be the grown up. Keep those lines of communication open. I have a lot of stuff about trustees and beneficiaris on my website if you want to visit www.monamontgomery.com.