A parent names an adult child as successor trustee. After the parent’s death, the child spends months handling accounts, paying bills, and distributing property. Whether that work deserves pay is a common source of tension.
When the trust does not specify a sum, a trustee is entitled to reasonable pay under Fla. Stat. § 736.0708, which does not exclude family members. When a trust specifies compensation, the trustee typically receives it. However, if the trustee’s responsibilities deviate significantly from those expected or if the stated compensation is too high or low, the court may modify the amount.
Florida sets no universal percentage for ordinary trustees. Expense reimbursement is also separate. Section 736.0709permits repayment of reasonable expenses properly incurred, which should be documented and kept distinct from pay for the trustee’s time.
In West Coast Hospital Association v. Florida National Bank of Jacksonville, the Florida Supreme Court held that trustee pay must be reasonable under the circumstances. Relevant factors include:
The court also cautioned against excessive combined pay for multiple trustees.
Hourly math is not the only measure. In Robert Rauschenberg Foundation v. Grutman, the appellate court affirmed a $24.6 million combined award for three trustees and held that the attorney-fee lodestar method was not required.
Beneficiaries may challenge improper fees, and section 736.1001 allows remedies including reducing or denying compensation. Being a beneficiary does not make a fee improper.
If you are creating a trust, decide whether your family trustee should be paid, how, and whether pay changes if the workload grows. Discuss expectations with that person first. A serving trustee should:
Accountings must disclose what the trustee is paid. Trustees may decline pay, and any fees taken can count as taxable income.
We can help you decide whether to pay a family trustee and draft language that sets clear expectations. To discuss your trust, reach out to us or call Schnauss Naugle Law at 904-643-6342.
