Reasonable or Excessive? How Florida Decides What a Trustee Can Pay Itself
Trustees do real work, and Florida law says they are entitled to be paid for it. Disputes begin when beneficiaries open a statement and wonder whether the fees match the effort. In Broward County, these questions come up in trusts of every size. The Fort Lauderdale trustee duties attorneys at Edward J. Jennings, P.A. can explain how compensation rules are generally applied, and an attorney can look at the specific numbers in a particular trust.
What the Statute Says
Section 736.0708, Florida Statutes, sets out the basic framework:
- If the trust does not specify compensation, the trustee is entitled to compensation that is reasonable under the circumstances.
- If the trust does specify compensation, the trustee is entitled to be paid as specified. A court may allow more or less if the trustee’s duties are substantially different from what was contemplated, or if the specified amount is unreasonably low or high.
- If the trustee performs other services in connection with administration, the trustee is allowed reasonable compensation for those as well.
Notably, the statute offers no fixed percentage. “Reasonable” depends on the facts, which is why two trusts of similar size can produce very different fee conversations. Some trust documents spell out a rate or a formula, while others say nothing at all, and each setup leads to a different starting point for the discussion.
A Special Rule for Attorney Trustees
Under § 736.0708(4), an attorney who prepared or supervised the signing of the trust instrument that names the attorney, or a related person, as trustee is generally not entitled to trustee compensation. The exceptions are when the attorney or person appointed is related to the settlor, or when the attorney made specific disclosures to the settlor before the instrument was signed.
Who Has to Prove What
When fees are questioned, § 736.0206 puts the burden of proving the propriety of the employment and the reasonableness of the compensation on the trustee and on anyone the trustee employed. A person found to have received excessive compensation may be ordered to make appropriate refunds. A court may also decide reasonable compensation without expert testimony, although any party may offer it.
Questions Beneficiaries Often Ask
- How was the trustee’s pay set, and does it match the trust document?
- Were separate fees charged for work that overlapped?
- Does the accounting show enough detail to understand each charge?
An attorney can help beneficiaries sort out which concerns may be worth raising, and a careful look at the accounting is often where those conversations begin. If a fee has left you with questions, call Edward J. Jennings, P.A. at 954-764-4330, and our Fort Lauderdale breach of fiduciary duty lawyers will gladly review your questions with you.
Sources:
https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/Sections/0736.0708.html
https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/Sections/0736.0206.html
