California Legal Codes and Statutes

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Article 5 - Compensation and Indemnification of Trustees

California Probate Code — §§ 15680-15688

Sections (9)

Amended by Stats. 2008, Ch. 237, Sec. 6. Effective January 1, 2009.

(a)Subject to subdivision (b), and except as provided in Section 15688, if the trust instrument provides for the trustee’s compensation, the trustee is entitled to be compensated in accordance with the trust instrument.

(b)Upon proper showing, the court may fix or allow greater or lesser compensation than could be allowed under the terms of the trust in any of the following circumstances:

(1)Where the duties of the trustee are substantially different from those contemplated when the trust was created.

(2)Where the compensation in accordance with the terms of the trust would be inequitable or unreasonably low or high.

(3)In extraordinary circumstances calling for equitable relief.

(c)An order fixing or allowing greater or lesser compensation under subdivision (b) applies only prospectively to actions taken in administration of the trust after the order is made.

Enacted by Stats. 1990, Ch. 79.

If the trust instrument does not specify the trustee’s compensation, the trustee is entitled to reasonable compensation under the circumstances.

Enacted by Stats. 1990, Ch. 79.

The court may fix an amount of periodic compensation under Sections 15680 and 15681 to continue for as long as the court determines is proper.

Enacted by Stats. 1990, Ch. 79.

Unless the trust instrument otherwise provides or the trustees otherwise agree, if the trust has two or more trustees, the compensation shall be apportioned among the cotrustees according to the services rendered by them.

Enacted by Stats. 1990, Ch. 79.

A trustee is entitled to the repayment out of the trust property for the following:

(a)Expenditures that were properly incurred in the administration of the trust.

(b)To the extent that they benefited the trust, expenditures that were not properly incurred in the administration of the trust.

Enacted by Stats. 1990, Ch. 79.

The trustee has an equitable lien on the trust property as against the beneficiary in the amount of advances, with any interest, made for the protection of the trust, and for expenses, losses, and liabilities sustained in the administration of the trust or because of ownership or control of any trust property.

Amended by Stats. 2017, Ch. 319, Sec. 86. (AB 976) Effective January 1, 2018.

(a)As used in this section, “trustee’s fee” includes, but is not limited to, the trustee’s periodic base fee, rate of percentage compensation, minimum fee, hourly rate, and transaction charge, but does not include fees for extraordinary services.

(b)A trustee shall not charge an increased trustee’s fee for administration of a particular trust unless the trustee first gives at least 60 days’ written notice of that increased fee to all of the following persons:

(1)Each beneficiary who is entitled to an account under Section 16062.

(2)Each beneficiary who was given the last preceding account.

(3)Each beneficiary who has made a written request to the trustee for notice of an increased trustee’s fee and has given an address for receiving notice.

(c)If a beneficiary files a petition under Section 17200 for review of the increased trustee’s fee or for removal of the trustee and serves a copy of the petition on the trustee before the expiration of the 60-day period, the increased trustee’s fee does not take effect as to that trust until otherwise ordered by the court or the petition is dismissed.

Amended by Stats. 1995, Ch. 730, Sec. 10. Effective January 1, 1996.

(a)Notwithstanding any provision of a trust to the contrary, a trustee who is an attorney may receive only (1) the trustee’s compensation provided in the trust or otherwise provided in this article or (2) compensation for legal services performed for the trustee, unless the trustee obtains approval for the right to dual compensation as provided in subdivision (d).

(b)No parent, child, sibling, or spouse of a person who is a trustee, and no law partnership or corporation whose partner, shareholder, or employee is serving as a trustee shall receive any compensation for legal services performed for the trustee unless the trustee waives trustee compensation or unless the trustee obtains approval for the right to dual compensation as provided in subdivision (d).

(c)This section shall not apply if the trustee is related by blood or marriage to, or is a cohabitant with, the settlor.

(d)After full disclosure of the nature of the compensation and relationship of the trustee to all persons receiving compensation under this section, the trustee may obtain approval for dual compensation by either of the following:

(1)An order pursuant to paragraph (21) of subdivision (b) of Section 17200.

(2)Giving 30 days’ advance written notice to the persons entitled to notice under Section 17203. Within that 30-day period, any person entitled to notice may object to the proposed action by written notice to the trustee or by filing a petition pursuant to paragraph (21) of subdivision (b) of Section 17200. If the trustee receives this objection during that 30-day period and if the trustee wishes dual compensation, the trustee shall file a petition for approval pursuant to paragraph (21) of subdivision (b) of Section 17200.

(e)Any waiver of the requirements of this section is against public policy and shall be void.

(f)This section applies to services rendered on or after January 1, 1994.

Amended by Stats. 2008, Ch. 237, Sec. 7. Effective January 1, 2009.

Notwithstanding any other provision of this article and the terms of the trust, a public guardian or public administrator who is appointed as a trustee of a trust pursuant to Section 15660.5 shall be paid from the trust property for all of the following:

(a)Reasonable expenses incurred in the administration of the trust.

(b)Compensation for services of the public guardian or public administrator and the attorney of the public guardian or public administrator, as follows:

(1)If the public guardian or public administrator is appointed as trustee of a trust that provides for the outright distribution of the entire trust estate, compensation for the public guardian or public administrator, and any attorney for the public guardian or public administrator, shall be calculated as that provided to a personal representative and attorney pursuant to Part 7 (commencing with Section 10800) of Division 7, based on the fair market value of the assets as of the date of the appointment, provided that the minimum amount of compensation for the public guardian or the public administrator shall be one thousand dollars ($1,000). Additionally, the minimum amount of compensation for the attorney for the public guardian or the public administrator, if any, shall be one thousand dollars ($1,000).

(2)For a trust other than that described in paragraph (1), the public guardian or public administrator shall be compensated as provided in Section 15680. Compensation shall be consistent with compensation allowed for professional fiduciaries or corporate fiduciaries providing comparable services.

(3)Except as provided in paragraph (1), reasonable compensation for the attorney for the public guardian or public administrator.

(c)An annual bond fee in the amount of twenty-five dollars ($25) plus one-fourth of 1 percent of the amount of the trust assets greater than ten thousand dollars ($10,000). The amount charged shall be deposited in the county treasury.