How are trustees paid?

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Multiple Choice

How are trustees paid?

Trustees can be paid for their work as administrators of the trust. The usual position is that they may receive reasonable remuneration for their services if the trust instrument allows it or if the beneficiaries or the court approve it. They may also be reimbursed for ordinary expenses they incur in managing the trust. This reflects that trustees perform professional or labor‑intensive duties and should be compensated, rather than doing it for free. Gifts from beneficiaries are not the proper or standard way to pay trustees and could create conflicts of interest. A government salary is not relevant because trustees are not government employees. Some trusts may prohibit remuneration in their deed, but the general rule contemplated by the exam is that trustees may be remunerated.

Trustees can be paid for their work as administrators of the trust. The usual position is that they may receive reasonable remuneration for their services if the trust instrument allows it or if the beneficiaries or the court approve it. They may also be reimbursed for ordinary expenses they incur in managing the trust. This reflects that trustees perform professional or labor‑intensive duties and should be compensated, rather than doing it for free.

Gifts from beneficiaries are not the proper or standard way to pay trustees and could create conflicts of interest. A government salary is not relevant because trustees are not government employees. Some trusts may prohibit remuneration in their deed, but the general rule contemplated by the exam is that trustees may be remunerated.

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