California trustees are those individuals who have been appointed upon the creation of a trust to administer the trust. Trustees in California are eligible to charge a reasonable fee for the services they provide in this role. Circumstances will dictate what counts as reasonable.
Being a trustee is a significant role. If there’s someone in your life that you trust to carry things out per your provisions, have a conversation with them to ensure they’re comfortable in that role. Many people turn to a bank or other professional entity to handle the role of trustee because of their greater level of experience and understanding around these complex issues.
Most trust fiduciaries, also known as trustees, will charge a percentage of the overall value of the trust assets which is often around 1%. General trustees like family members or friends who have been appointed in this role will usually charge by the hour.
Fees that a trustee can charge will depend on the amount of work it requires for them to administer the trust. Some trusts are much more complex than others and if administering a trust requires things like high-value investment decisions or selling multiple real estate properties, then the trustee fees will be higher.
One example of services provided by a California trustee is the creation of an accounting. An accounting may come up to explain what has happened with the assets inside the trust. Beneficiaries can challenge the fees charged by a trustee if the beneficiaries believe these are unreasonable, but it will fall to the court’s discretion to determine whether or not this is the case.
Need more information about being or picking a trustee in California? Work directly with a Pasadena estate planning lawyer.