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? 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. I’m Mike Hackard from Hackard Law. Thank you for listening.