Trustee Compensation

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If you’ve set up a trust in Atlanta, you’ve probably wondered: who manages all of this, and what do they get paid for it? A trustee carries real responsibility. They manage assets, communicate with beneficiaries, file tax returns, and make decisions that directly affect people’s financial lives. That kind of work deserves fair pay, and Georgia law is clear about how that pay gets determined. At Slowik Estate Planning, located in Atlanta, Georgia, we help families understand trustee compensation before problems arise, not after.

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What Georgia Law Says About Trustee Compensation

Georgia’s rules on trustee pay come from the Revised Georgia Trust Code of 2010, found in O.C.G.A. Title 53, Chapter 12. Specifically, Article 11 covers trustees, and Part 2 of that article deals directly with compensation. Understanding what the law says is the first step in making smart decisions for your trust.

Trustees shall be compensated in accordance with either the trust instrument or any separate written agreement between the trustee and the settlor. This means your trust document is the starting point. If your trust spells out how much the trustee gets paid, that agreement controls. If it does not, Georgia law steps in with a default fee structure.

After the settlor’s death or incapacity or while the trust is irrevocable, the trust instrument or the agreement relating to such trustee’s compensation may be modified as follows: the trustee and all qualified beneficiaries may by unanimous consent modify the trust instrument or agreement relating to the trustee’s compensation without receiving the approval of any court, or by petition pursuant to Code Section 53-12-61. That gives families some flexibility, but it requires everyone to agree, which is not always easy when emotions are running high after a loss.

This is exactly why it matters to plan ahead. When you work with an estate planning attorney in Atlanta, you can build clear compensation terms directly into your trust from the start. That protects your trustee and your beneficiaries from future disagreements.

The Default Fee Schedule for Individual Trustees in Georgia

What happens when a trust does not include a compensation clause? Georgia law provides a clear answer. The default fee schedule under O.C.G.A. § 53-12-210(c) gives individual trustees a two-part payment structure. Both parts apply separately, and both come from the trust’s assets.

Individual trustees are entitled to 1% of cash or the fair market value of any principal assets received by the trust, and an annual sliding fee based on the value of the trust assets. This begins at 1.75% for assets worth up to $500,000, with specified cash and percentages for higher totals.

Think about what that looks like in practice. Say a trust receives $800,000 in assets when it is first funded. The trustee earns 1% of that amount, which is $8,000, right at the start. Then each year, the trustee earns an annual fee based on the total value of what remains in the trust. For a trust worth $500,000 or less, that annual rate is 1.75%. Georgia is one of only a few states that has adopted statutory testamentary trustee fees. That means Georgia actually gives trustees and families more predictability than most states.

For corporate trustees, the rule is different. With respect to a corporate trustee, its published fee schedule applies, provided such fees are reasonable under the circumstances. Corporate trustees, like banks or trust companies, typically publish their fee schedules publicly. Those fees still have to be reasonable, but the law gives them more room to set their own rates.

If you are unsure how these numbers apply to your specific trust, talking to an attorney is the best move. Slowik Estate Planning can walk you through the math and help you decide whether the default rules work for your situation or whether you need a custom arrangement.

What Counts as “Reasonable” Trustee Compensation?

Georgia’s fee schedule gives you a starting point, but the concept of “reasonable” compensation goes deeper than a percentage. Courts and families sometimes disagree about what a trustee truly deserves. Knowing what factors matter can save you from a dispute down the road.

The Restatement (Third) of Trusts enumerates nine factors for determining trustee compensation: local custom, trustee’s skill and expertise, time devoted to the trustee’s duties, amount and character of trust property, degree of difficulty, level and type of responsibility, risk assumed, nature and cost of the services, and quality of such party’s performance. While Georgia’s statute provides a default schedule, these factors still inform how courts evaluate whether a fee is truly fair.

Consider two different trusts. One holds a savings account with $600,000 in it. The other holds five rental properties, a small business interest, and a brokerage account with international holdings. Both trusts might be worth the same amount, but the second one demands far more time and skill from the trustee. A fee that is reasonable for the first trust might actually be too low for the second.

The trustee’s background matters too. A trustee who is a licensed CPA brings financial knowledge that can save the trust money on taxes and accounting. That skill has value. A trustee who has no financial background might spend twice the time on the same tasks. Courts recognize this when evaluating fee disputes.

If you are naming a family member as trustee, think carefully about what you are asking them to do. Managing a trust is a real job. It can take dozens of hours per year. Paying them fairly is not just generous, it is smart. It keeps them motivated and protects the trust from neglect. Slowik Estate Planning can help you set compensation terms that reflect the real work involved. We serve clients throughout the Atlanta, Georgia area and can help you think through these decisions clearly.

Can a Trustee Receive Extra Compensation?

Sometimes the standard fee schedule simply does not cover everything a trustee has to do. Georgia law recognizes this and allows for extra compensation in special circumstances. This is an important protection for trustees who go above and beyond their normal duties.

Under O.C.G.A. § 53-12-212, a trustee may petition the court for additional pay when the work required goes beyond what the standard fee was meant to cover. After hearing any objection, the court shall allow such extra compensation as the court deems reasonable. The allowance of extra compensation shall be conclusive as to all parties in interest. That means once a court approves the extra fee, no one can come back later and challenge it.

When might this apply? Think about a trustee who has to manage a prolonged legal dispute involving trust assets. Or a trustee who oversees the sale of a commercial property held in trust. Or one who has to deal with a beneficiary challenge that requires months of court appearances. These situations go far beyond routine trust administration, and the law gives trustees a path to fair pay for that extra effort.

It is worth noting that extra compensation is not automatic. The trustee has to ask for it, and the court has to approve it. That process takes time and can create friction with beneficiaries. The best way to avoid this is to plan ahead. A well-drafted trust can include provisions for extraordinary services so that the trustee does not have to go to court at all.

Whether you need help with asset protection strategies within your trust or simply want to make sure your trustee compensation terms are airtight, Slowik Estate Planning is ready to help. We take the time to understand your full financial picture before making any recommendations.

Setting Trustee Compensation in Your Trust Document

The single most effective thing you can do about trustee compensation is to address it directly in your trust document. When compensation terms are clear from the beginning, there is far less room for conflict. Everyone knows what to expect, and the trustee can focus on doing the job instead of worrying about getting paid.

Your trust document can do several things at once. It can set a flat fee, an hourly rate, a percentage of trust assets, or a combination of all three. It can also specify how and when the trustee gets paid, whether annually, quarterly, or upon completion of specific tasks. You can even include a provision that allows the trustee to hire outside professionals, like accountants or attorneys, and pay them from trust funds. That kind of flexibility makes the trustee’s job easier and protects the trust’s value over time.

If you want to name a family member as trustee but worry they might not accept the role without fair pay, putting compensation terms in writing removes that barrier. On the other hand, if you want to name a professional corporate trustee, your document can reference their published fee schedule and confirm that it applies, avoiding any ambiguity.

Georgia’s trust code also allows for unique trust structures that affect how compensation works. For example, trusts with a pet guardianships component may require a trustee to manage ongoing care costs for an animal, which adds another layer of responsibility worth addressing in the compensation terms.

For families with larger or more complex estates, it also makes sense to coordinate trustee compensation with your broader Estate Tax Planning in Atlanta Georgia strategy. How trustee fees are structured can have tax consequences for both the trust and its beneficiaries. Getting these details right from the start can save your family real money.

The team at Slowik Estate Planning, based in Atlanta, Georgia, works with clients to draft trust documents that are clear, legally sound, and built to last. If you have questions about how to structure trustee compensation for your trust, or if you need to review an existing trust document, we encourage you to reach out. Contact the Atlanta estate planning lawyer at Slowik Estate Planning today to schedule a consultation. Prior results of any specific case do not guarantee similar outcomes in your matter.

FAQs About Trustee Compensation in Atlanta, Georgia

Does a trustee in Georgia have to be paid?

No, a trustee does not have to accept payment. A trustee can waive compensation entirely if they choose to. However, Georgia law gives trustees the right to be paid for their work. Family members who serve as trustees often choose to waive fees for smaller trusts, but they are not required to do so. If the trust document is silent on compensation, the default fee schedule under O.C.G.A. § 53-12-210 applies.

What is the default trustee fee under Georgia law?

Under O.C.G.A. § 53-12-210(c), an individual trustee is entitled to 1% of the cash and fair market value of principal assets received when the trust is funded. They also receive an annual fee based on the total value of trust assets. For trusts with assets of $500,000 or less, that annual rate is 1.75%. The rate decreases on a sliding scale for larger trusts. Corporate trustees may charge according to their published fee schedules, as long as those fees are reasonable.

Can trustee compensation be changed after the trust is created?

Yes, but the process depends on the circumstances. If the settlor is still alive and the trust is revocable, changes are straightforward. After the settlor’s death or incapacity, or if the trust is irrevocable, the trustee and all qualified beneficiaries can agree to a change by unanimous consent without court approval. If unanimous consent is not possible, a petition to the court under O.C.G.A. § 53-12-61 may be required.

Can a trustee receive additional pay for extra work in Georgia?

Yes. Georgia law allows a trustee to petition the court for extra compensation when the work required goes beyond what the standard fee covers. Under O.C.G.A. § 53-12-212, the court will hear any objections and then decide what additional pay is reasonable. Once the court approves the extra fee, that decision is final for all parties. Planning ahead by including extraordinary services provisions in your trust document can avoid the need for court involvement.

Should I name a family member or a professional as my trustee?

Both options have real advantages and trade-offs. A family member may know your wishes personally and may serve at lower cost, but they may lack financial or legal knowledge. A professional or corporate trustee brings experience and accountability but typically charges higher fees. The right choice depends on your trust’s size, complexity, and the nature of the assets involved. An estate planning attorney can help you evaluate your options and draft compensation terms that work for whoever you choose. Slowik Estate Planning, in Atlanta, Georgia, is happy to help you think through this decision.

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