California Trustee Fee Calculator

Why Trustee Fees Matter

Trustees have legal and fiduciary duties to manage trust assets responsibly. Whether you’re a family member acting as trustee (non-professional) or a corporate or private professional trust company, understanding fair compensation is crucial. Under California law, a trustee’s role can include:

• Collecting and managing trust property
• Investing assets prudently
• Handling tax filings and compliance
• Distributing income and principal to beneficiaries
• Communicating regularly with beneficiaries

A well-structured fee arrangement ensures that a trustee is fairly compensated for these tasks without eroding trust assets unnecessarily. Our calculator allows you to compare different models and see real-time estimates based on your specific trust data.

Usage Guide for the California Trustee Fee Calculator

1. Select Trustee Type: Choose between “Professional Trustee” (banks, trust companies, or licensed fiduciaries) or “Non-Professional Trustee” (family members or friends). Professional trustees typically use higher hourly rates or percentages, while non-professionals may opt for lower percentages.
2. Choose Compensation Model:
   • Percentage of Assets: Trustee charges a percentage (e.g., 1.5%) of the total trust asset value. Common for professional trustees when handling significant estates.
   • Percentage of Income: Trustee charges a percentage (e.g., 1%) of annual trust income. This model suits trusts generating regular distributions like rental or dividend income.
   • Hourly Rate: Trustee charges an hourly rate (e.g., $200/hr) for actual hours spent administering the trust. Many courts and beneficiaries prefer this transparent method for complexity.
   • Flat Fee: Trustee collects a one-time, predetermined sum regardless of hours or asset levels. Suitable for simple, short-term trusts.
3. Enter Relevant Data:
   • For Assets Percentage: Input the total trust asset value in USD and the chosen percentage.
   • For Income Percentage: Input the trust’s annual income and the fee percentage.
   • For Hourly Rate: Input expected hours of work and the trustee’s hourly rate.
   • For Flat Fee: Input the agreed flat fee amount.
4. Calculate: Click “Calculate Fee” to display:
   • Trustee Type: Professional or Non-Professional
   • Cost Breakdown: Detailed calculation (e.g., Asset Value × Percentage, Hours × Rate, etc.)
   • Legal Note: A reminder that under California Probate Code §15680, a trustee without specified compensation may charge reasonable fees.
5. Export or Share: Use the Print, Download, or Share buttons to keep a record or send the estimate to beneficiaries, co-trustees, or advisors.

Calculation Examples

1. Example 1: Professional Trustee – Percentage of Assets
   Trust asset value = $2,500,000;
   Trustee fee percentage = 1.25% (common for large estates).
   Calculation: $2,500,000 × 1.25% = $31,250 in annual trustee compensation.
2. Example 2: Non-Professional Trustee – Hourly Rate
   Estimated admin hours = 150;
   Hourly rate = $75/hr (typical for a family member caretaker).
   Calculation: 150 hours × $75/hr = $11,250 total fee.
3. Example 3: Professional Trustee – Percentage of Income
   Annual trust income = $120,000;
   Fee percentage = 1.0%.
   Calculation: $120,000 × 1.0% = $1,200 fee.
4. Example 4: Non-Professional Trustee – Flat Fee
   Agreed flat fee for one year of administration = $5,000.
   Calculation: Trustee receives $5,000, regardless of hours or asset value.

Frequently Asked Questions

1. What does California Probate Code §15680 say?
Section 15680 states that if a trust’s governing instrument offers no clear compensation instructions, the trustee may receive “reasonable compensation” for services. Reasonable fees consider factors like time spent, skill required, trust complexity, and local fee standards. For full legal text, see CA Probate Code §15680.

2. How do I choose between percentage vs. hourly?
If trust administration is straightforward—distributions and minimal investment management—a percentage of assets or income may be simpler. For complex trusts requiring extensive accounting, litigation, or real estate management, an hourly rate ensures compensation matches actual work hours.

3. Are there standard trustee fees in California?
While no single “standard,” professional trustees often charge 1%–1.5% on the first $1 million of trust assets, 1.25% on the next $1 million, and so on, per the Uniform Probate Code guidelines adopted by many California courts. Non-professional trustees typically accept 0.5%–1.0% of assets or modest hourly rates ($50–$100/hr).

4. Can beneficiaries dispute trustee fees?
Yes. Beneficiaries may petition the probate court to review and modify fees if they deem them excessive. Courts examine the trust’s complexity, hours logged, trustee skill—and compare to local hourly or percentage norms—before approving or adjusting fees.

5. What if the trust instrument specifies a fee?
Always follow the trust document. If a trust agreement explicitly sets a percentage, hourly rate, or flat fee, those terms govern. California Probate Code §15680 only applies when the trust is silent or ambiguous.

6. Explore More Tools
For additional financial calculators—loan payments, investment returns, or budgeting—visit our Explore more tools page.

7. Disclaimer
This calculator provides estimates only. Actual trustee fees depend on trust complexity, local market rates, and court approval. Always consult a qualified estate attorney or professional trustee for precise fee determinations.