When the Trust Is Silent on Compensation
Many trust documents say nothing about what the trustee should be paid. When that happens, Arizona law fills the gap with a simple standard: the trustee is entitled to compensation that is reasonable under the circumstances.
If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances.
A.R.S. § 14-10708(A)What counts as "reasonable" depends on several factors: the complexity of the trust, the value of the assets, the time and effort required, and the level of skill the work demands. A trustee managing a straightforward distribution is in a different position than one overseeing a multi-year trust with real estate, business interests, and ongoing tax obligations.
When the Trust Sets a Fee
Some trust documents include a specific compensation provision or reference an outside source for determining fees. In those cases, the trustee is generally entitled to the amount stated. But the court retains the authority to adjust it.
If the terms of a trust specify the trustee's compensation, the trustee is entitled to be compensated as specified, but the court may allow more or less compensation if either: 1. The duties of the trustee are substantially different from those contemplated when the trust was created. 2. The compensation specified by the terms of the trust would be unreasonably low or high.
A.R.S. § 14-10708(B)This protects both trustees and beneficiaries. A trustee who ends up doing far more work than anticipated can petition for a higher fee. Beneficiaries who discover the trust is paying an outsized amount relative to the actual work can ask the court to reduce it. The key question is always whether the compensation fits the reality of the job.
