Reasonable Compensation for a Trustee in Florida

What is reasonable compensation for a trustee in Florida? When the trust document does not set a fee, Florida law entitles the trustee to compensation that is reasonable under the circumstances. That default rule comes from Fla. Stat. § 736.0708.

If you’re a beneficiary, or you’ve just been named trustee for a relative, this question can feel urgent. A fee statement may look high. You may also be deciding whether to take the role at all. This page explains the rule, what shapes the amount, and what you can do when a fee seems wrong.

The Short Answer: Florida’s Default Rule for Trustee Pay

A trustee is paid reasonable compensation when the trust does not say how much. That is the starting point under Fla. Stat. § 736.0708. The statute ties the amount to the circumstances, so no single figure fits every trustee.

Consider two trusts. One holds a single bank account and a house. The other holds a closely held business, rental properties and accounts that run for several years. The second trust involves far more work. A reasonable fee for it will look different.

The default applies only when the trust is silent on pay. Once the trust sets a fee, the analysis changes. The next section explains how that works. Keep the default in mind as you read the trust itself.

When the Trust Document Sets the Fee

When the trust names a fee, the trustee is paid as the trust specifies. The trust terms come first. A fee clause might set a yearly amount, a percentage, an hourly rate or a method for figuring pay.

A court can change a specified fee in limited cases. Under § 736.0708(2), a court may allow more or less pay if the trustee’s duties differ substantially from what the trust contemplated. A court may also act if the specified pay is unreasonably low or high.

Read the clause closely. Ask whether it covers routine administration only. Ask whether it also covers extra work, such as a property sale or a tax dispute. A trustee who renders other services for the trust may receive reasonable pay for them, on top of trustee pay. See § 736.0708(3).

Vague wording causes trouble. When the terms are unclear, the question can end up before a judge. For more on paid fiduciary roles, see how Trust Counsel advises trustees and personal representatives.

Factors Courts and Parties Look At When Judging Reasonableness

A fee is reasonable when it fits the work the trustee actually did. The trust statute sets the standard in general words. It does not give a checklist for trustees. The following considerations may bear on a fee review:

• The size and complexity of the trust estate.
• The nature and difficulty of the duties.
• The time the work took.
• The skill and experience the work called for.
• The trustee’s relationship to the beneficiaries.
• Whether the trustee is a professional or a family member.

A judge can decide reasonableness without hearing expert witnesses. Under § 736.0206(5), the court may do so. Any party may still offer expert testimony after notice to interested persons.

Records shape how the fee is measured. A fee is tested against the work done. Dated notes showing tasks, calls and decisions give a reviewer something concrete. Whether a particular fee holds up depends on the facts of the administration.

How Personal Representative Compensation Compares

A personal representative (often called an executor) is paid under a different statute. Fla. Stat. § 733.617 says a personal representative is entitled to a commission from estate assets, without court order, for ordinary services.

That commission is based on the compensable value of the estate. The statute defines that value as the inventory value of probate assets plus income earned during administration. In formal administration, the commission is presumed reasonable. The statute sets out a percentage schedule for that commission.

Ordinary pay can also change. On petition of an interested person, the court may increase or decrease it if the facts and circumstances warrant. See § 733.617(7).

The two roles carry different duties. Their pay is judged under different rules. Don’t assume one schedule applies to the other.

Trustee Fees Versus Legal Fees for Work Done for the Trust

A trustee’s pay for running the trust is separate from legal fees. A trust may also pay a lawyer for legal work, such as advice on an accounting. Those are two different payments.

Trust Counsel’s attorney, Leslie V. Marenco, can serve individually as trustee or personal representative. The firm advises and represents trustees, personal representatives and beneficiaries.

Attorney-trustees face an extra rule. Under § 736.0708(4), an attorney who prepared or supervised the trust naming them, or a person related to that attorney who is appointed as trustee, may not receive trustee compensation unless a statutory exception applies. One exception applies if the attorney is related to the settlor. A second exception applies only if the attorney gave the settlor the statutory disclosures before the trust was signed and the settlor signed a written acknowledgment of those disclosures.

Can a Beneficiary Challenge Trustee Fees in Florida?

Qualified beneficiaries may have rights to the information needed to check a fee under § 736.0813, but those rights have limits; they generally do not apply while a revocable trust’s settlor is living (§ 736.0603). A disputed fee can also go before a court. Under § 736.0206(1), the court may review the reasonableness of any compensation paid to the trustee.

Information comes first. A trustee must keep qualified beneficiaries reasonably informed. Under § 736.0813(1), the trustee gives a complete copy of the trust on reasonable request. The trustee also provides relevant information about assets, liabilities and administration.

An irrevocable trust requires regular accountings. Under § 736.0813(1)(d), a trustee generally must account at least annually to qualified beneficiaries. § 736.08135 governs what that accounting must contain.

Burden matters in a dispute. The trustee carries the burden of proof on the propriety and reasonableness of compensation. A trustee who is found to have received excessive compensation may be ordered to make refunds. See § 736.0206 for the statute’s provisions.

When Compensation Can Be Reduced or Denied

A court can reduce or deny a trustee’s pay as part of a remedy for breach of trust. A breach occurs when a trustee violates a duty owed to a beneficiary. See § 736.1001(1).

The court’s remedies are listed in the same statute. The court may reduce or deny compensation to the trustee. It may also order the trustee to account. It may order the trustee to redress the breach by paying money or restoring property. See § 736.1001(2).

Each matter turns on its own record. A court looks at what the trustee did, what the trust required and what the beneficiaries can show. Describing these remedies is not a forecast of how any court will rule.

Keeping Records That Support a Reasonable Fee

A trustee’s fee is easier to defend with good records. A trustee “shall keep clear, distinct, and accurate records of the administration of the trust.” See § 736.0810(1).

The trustee must also keep trust property separate from the trustee’s own property. See § 736.0810(2). Mixing funds makes any fee harder to justify.

Keep dated, itemized notes of time, tasks and decisions. Note who did the work, what it covered and why it was needed. Keep receipts for every expense.

Expenses are not the same as pay. A trustee may be reimbursed from trust property for expenses properly incurred in the administration of the trust, with interest as appropriate. See § 736.0709(1). Expenses answer what it cost to run the trust. Compensation answers what the work is worth. Keep the two separate in your records.

Talk Through Your Trustee Fee Question With Trust Counsel, PL

If a family member named you trustee, or a fee statement has left you uneasy, you may be in the middle of a hard stretch. An estate may still be open. Questions about reasonable compensation for a trustee in Florida can come up before anyone has a clear answer.

Trust Counsel, PL is located in Coral Gables. If you’d like to talk through how your trust’s compensation terms apply to your facts, call (305) 707-7126 or schedule online. The firm offers a free first consultation, which is confidential and carries no obligation to continue.

We serve clients in Aventura from our Coral Gables office.

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