Executor and Trustee Compensation in California: Rules, Examples, and Practical Guidance

When someone serves as an executor of a California estate or as a trustee of a California trust, the question of compensation inevitably arises: How much will I be paid for this work?

California law provides different systems for executors and trustees:

• Executor compensation is based on a statutory percentage schedule under the California Probate Code, with additional fees possible for extraordinary services.

• Trustee compensation is determined by a “reasonable compensation” standard, unless the trust instrument sets specific rules.

This article provides a comprehensive guide to executor and trustee compensation in California, including statutory references, examples, co-fiduciary arrangements, and practical drafting tips.

Executor Compensation in California

Executor compensation is governed by California Probate Code § 10800 (ordinary services) and § 10801 (extraordinary services).

Statutory Schedule for Ordinary Services

Executors are entitled to a percentage of the probate estate’s value, calculated as follows:

• 4% of the first $100,000

• 3% of the next $100,000

• 2% of the next $800,000

• 1% of the next $9,000,000

• 0.5% of the next $15,000,000

• For estates over $25 million, the court sets a reasonable amount

Example 1: Estate Valued at $2,000,000

• 4% × $100,000 = $4,000

• 3% × $100,000 = $3,000

• 2% × $800,000 = $16,000

• 1% × $1,000,000 = $10,000

• Total = $33,000 executor compensation

Extraordinary Services

Executors may petition the court for extraordinary fees for services such as:

• Handling litigation on behalf of the estate

• Operating or selling a business

• Managing complex tax issues

• Selling real estate (beyond ordinary sales)

The court has discretion in approving these additional fees, which must be supported by detailed time records.

Co-Executors

When multiple executors serve, the statutory fee is divided among them according to the court’s determination of their relative contributions.

Trustee Compensation in California

Unlike executors, trustees in California are not subject to a rigid statutory formula. Instead, compensation is determined by California Probate Code § 15681, which provides:

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

Factors Courts Consider in Determining Reasonableness

• Size of the trust estate

• Complexity of assets (real estate, businesses, investments)

• Time and skill required

• Results achieved

• Local market rates for professional fiduciaries

Example 2: California Trust Valued at $5,000,000

• A family member trustee might reasonably charge 0.25%–0.5% annually, or $12,500–$25,000.

• A professional private fiduciary or corporate trustee might charge 0.5%–1.0% annually, or $25,000–$50,000.

This flexibility allows trustees to be fairly compensated for complex trusts but may create uncertainty if beneficiaries dispute the fee.

Instrument Overrides

Both wills and trusts may set specific rules for compensation:

• A will may waive or cap executor compensation.

• A trust may set flat fees, reference a corporate trustee’s fee schedule, or waive fees altogether.

Unless the instrument provides otherwise, the statutory (for executors) or reasonable (for trustees) standards apply.

Court Oversight and Disputes

Fiduciary compensation is always subject to court review if beneficiaries object. Common disputes involve:

• Whether a trustee’s fee is “reasonable” under the circumstances.

• Whether an executor’s request for extraordinary fees is justified.

• Allegations of “double-dipping” (e.g., trustee also serving as an investment manager and charging both fees).

California courts emphasize detailed recordkeeping, time logs, and transparency when evaluating compensation.

Comparison: Executors vs. Trustees in California

Aspect	Executors	Trustees
Statute	Probate Code § 10800	Probate Code § 15681
Compensation Standard	Fixed percentage schedule + possible extraordinary fees	Reasonable compensation unless trust specifies
Court Approval	Required at estate accounting	Only if disputed
Flexibility	Predictable percentages, less flexible	Flexible but potentially uncertain
Example ($2M estate / $2M trust)	$33,000 statutory executor fee	~$20,000–$30,000 reasonable trustee fee

Comparison to New York

California differs sharply from New York:

• Executors in both states use percentage schedules, but New York’s percentages are lower and calculated differently.

• Trustees in New York use a statutory percentage formula, while California uses the reasonable compensation standard.

Drafting Considerations for Attorneys

When drafting wills and trusts in California, attorneys should consider:

• Should executor compensation be capped or waived for family executors?

• Should trustee fees be tied to a specific schedule (e.g., corporate trustee rates) to avoid disputes?

• Should extraordinary services (e.g., running a business) be addressed in advance?

Key Takeaways

• Executor compensation in California follows a statutory percentage schedule (Probate Code § 10800) with additional fees possible for extraordinary services.

• Trustee compensation in California is based on “reasonable compensation” unless the trust instrument provides otherwise.

• Co-fiduciary arrangements require dividing fees fairly under court oversight.

• Court review is common for executors and possible for trustees if disputes arise.

• Compared to New York, California provides predictability for executors but flexibility (and potential disputes) for trustees.