What Does Trust Administration Cost in California?

Written by Trust Law Legacy Group, APC, an Estate Planning, Trust & Probate Law Firm in San Jose, California. Updated September 2026.

A new successor trustee in San Jose usually asks two money questions in the first week: what am I allowed to be paid, and what will this cost the trust? Trust administration costs are built from specific tasks rather than a formula. This article explains the rules on trustee compensation, the tasks that drive professional fees, and practical ways to keep the total reasonable.

Trustee Compensation

• The trust says how much. Subject to statutory exceptions, if the trust instrument provides for the trustee’s compensation, the trustee is entitled to compensation in accordance with the trust instrument (Probate Code section 15680(a)).
• The trust is silent. The trustee is entitled to reasonable compensation under the circumstances (section 15681).
• The court can adjust. On a proper showing, a court may allow greater or lesser compensation than the trust provides when the trustee’s duties are substantially different from those contemplated when the trust was created, when the stated compensation would be inequitable or unreasonably low or high, or in extraordinary circumstances calling for equitable relief (Probate Code section 15680(b)). An order changing compensation under this provision applies prospectively to actions taken after the order is made (section 15680(c)).
• Trustees and beneficiaries can ask for court review. A trustee or beneficiary may petition the court to fix or allow payment of the trustee’s compensation or to review its reasonableness (Probate Code section 17200(b)(9)).
• Compensation must be disclosed when an accounting is required. An account furnished under Probate Code section 16062 must state the trustee’s compensation and identify agents hired by the trustee, their relationship to the trustee, if any, and their compensation (section 16063(a)(3)-(4)).
• Proper administration expenses may be reimbursed from the trust. A trustee is entitled to repayment from trust property for expenditures properly incurred in administering the trust. Even an expenditure not properly incurred may be reimbursable to the extent it benefited the trust (Probate Code section 15684).

Family members serving as trustee sometimes choose not to take a fee, especially when they are also beneficiaries. The tax consequences of trustee compensation can vary, so a trustee considering whether to take compensation should discuss the issue with the trust’s tax professional and, when appropriate, counsel.

What Drives Legal and Professional Fees

• Real estate. Date-of-death appraisals, preparing a home for sale or transfer, and deeds to beneficiaries.
• Required notices. Probate Code section 16061.7 requires a trustee notification after specified events, including when a revocable trust or a portion of it becomes irrevocable because of a settlor’s death and when there is a change of trustee of an irrevocable trust. In general, the notification must be served no later than 60 days after the event requiring notice, subject to the statute’s rules for later-discovered recipients and trustee vacancies. When the notice is triggered by a settlor’s death, service generally starts the trust-contest limitation period described in section 16061.8.
• Tax returns. Depending on the circumstances, administration may involve a final individual income tax return, fiduciary income tax returns, property tax filings, and, for estates that meet applicable filing thresholds, federal or state estate-tax-related work. See our article on successor trustee taxes.
• Assets outside the trust. Property that was never properly transferred to the trust may require additional steps. Depending on title, the trust instrument, and the facts, a trustee may seek a court order under Probate Code section 850 to determine or confirm that property belongs to the trust, or a probate proceeding or another transfer procedure may be required.
• Number and location of beneficiaries. More people means more communication, more signatures, and more room for disagreement.
• Continuing trusts. Shares held in trust for young beneficiaries or for a beneficiary with a disability mean years of administration, not months.
• Disputes. Beneficiary objections, trust contests, petitions for instructions, contested accountings, and other litigation can substantially increase legal and professional fees.

Common Out-of-Pocket Expenses

• Certified copies of the death certificate
• Appraisals of real estate and other non-cash assets
• Preparation of fiduciary tax returns
• Recording fees for deeds
• Insurance, utilities, and upkeep on real property until it is sold or distributed
• Fees for a professional fiduciary, if one serves

How Trust Administration Differs From Probate Costs

In probate, California Probate Code sections 10800 and 10810 provide percentage schedules for compensation for ordinary services of the personal representative and the attorney for the personal representative. The percentages are applied to the value of the estate accounted for by the personal representative, calculated under the statutes without reference to encumbrances or other obligations on estate property. On an estate valued at $1,000,000 for statutory-fee purposes, the schedule produces $23,000 for the personal representative and $23,000 for the attorney, or $46,000 combined, if both take the full statutory compensation for ordinary services. Probate compensation is subject to the Probate Code and court approval. Ordinary trust administration does not use that probate percentage schedule. Trust administration generally offers more flexibility and less routine court involvement, but trustees remain fiduciaries and should keep administration expenses reasonable, properly incurred, and well documented. Our probate fee calculator shows how the statutory probate schedule applies at different estate values.

Ways to Keep Trust Administration Costs Reasonable

1. Gather the trust, amendments, deeds, account statements, and the last few tax returns before the first meeting.
2. Ask for the attorney’s fee arrangement in writing and, where practical, an estimate or budget by phase: notices, asset collection and valuation, tax work, property transfers or sales, accounting, and distribution. Actual fees may change if the administration becomes more complex or contested.
3. Serve any notification required by Probate Code section 16061.7 on time. When the notification is required because a trust became irrevocable by reason of a settlor’s death, section 16061.8 generally bars a trust contest more than 120 days after the notice is served, or 60 days after a copy of the trust terms is delivered during that 120-day period, whichever is later.
4. Keep trust money in a separate trust account, and save every receipt.
5. Keep beneficiaries appropriately informed and provide reports or accountings when required. Clear, timely communication and good records can reduce misunderstandings and make the administration easier to document.
6. Decide early whether a family member or a professional fiduciary should serve.

Timing matters too. Our article on how long trust administration takes in California explains each stage, and our trust administration guide and San Jose trust administration attorney page cover a trustee’s duties.

Frequently Asked Questions

How much does a trustee get paid in California?

Generally, the trustee receives the compensation provided in the trust instrument. If the trust does not specify compensation, the trustee is entitled to reasonable compensation under the circumstances (Probate Code sections 15680 and 15681). On petition, the court may fix or review compensation and, in the circumstances described in section 15680(b), may prospectively allow more or less than the amount stated in the trust.

Is trust administration cheaper than probate in California?

Often, but not always. Probate compensation for ordinary services follows statutory percentage schedules based on the value of the estate accounted for by the personal representative. Trust administration does not use those probate percentage schedules; its costs depend on the work actually required. A trust involving disputes, unfunded assets, real estate issues, continuing trusts, or complex tax matters can still be expensive.

Who pays the costs of trust administration?

Generally, proper administration expenses are paid or reimbursed from trust property. Probate Code section 15684 entitles a trustee to repayment for expenditures properly incurred in administering the trust and, to the extent they benefited the trust, certain expenditures not properly incurred. Whether a particular attorney fee, professional fee, or other expense is properly chargeable to the trust can depend on the purpose and circumstances of the expenditure.

Can a beneficiary challenge trustee fees?

Yes. A trustee or beneficiary may petition the court to fix or review the reasonableness of trustee compensation under Probate Code section 17200(b)(9). If a trustee commits a breach of trust, the court may reduce or deny the trustee’s compensation as an available remedy under section 16420(a)(7).

Does the trustee have to disclose what they were paid?

When an accounting is required under Probate Code section 16062, the account must disclose the trustee’s compensation and the compensation of agents hired by the trustee, along with any relationship between the trustee and those agents (section 16063(a)(3)-(4)). Section 16062 and related provisions contain exceptions and other rules concerning when an accounting is required.

This article provides general information about California law, not legal advice. Reading it or contacting the firm does not create an attorney-client relationship. Results and fees depend on the specific facts, governing documents, applicable law, and services required.