Q: What is the percentage a nonprofessional ( a family member) trustee can charge a family trust?
A:
In Utah, there is no set percentage for what a nonprofessional (family member) trustee can charge a family trust. Compensation is typically based on what is reasonable given the duties performed, the time involved, and the complexity of the trust administration. The trust document may specify the trustee’s compensation; if not, the fees must be reasonable and are often less than those charged by professional trustees.
If disputes arise over fees, they can be resolved in court based on the specifics of the case. Trustees and beneficiaries should agree on compensation terms early to avoid conflicts.
Many times, trustees will set an hourly rate, rather than some percentage of the overall trust assets. I personally like this approach better, seeing as the trustee can always resign, if they don't want to do it anymore. If they have already taken the lump sum fee, then they resign or can't complete it, then it becomes difficult for them to repay or decide what would be equitable.
For hourly rates, they get paid for time spent on the matter regardless of if they finish the job.
I hope this helps.
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