The UTA codifies compensation at Section 7768 of the PEF code. If one is specified in the trust instrument, the trustee is entitled to compensation that is reasonable under the circumstances. If specified, a court is still permitted to adjust the amount paid to the trustee that is more or less than that specified if: 1) the duties of the trustee have become substantially different from those contemplated when the trust was created or when the fee agreement was executed; 2) the compensation specified in the trust instrument or fee agreement would be unreasonable; or 3) the trustee performed extraordinary services, and the trust instrument or fee agreement does not specify the trustees compensation for those services.
The trustee may still be entitled to compensation from the income or principal of a trust even if: one the trust is perpetual or for any other reason has not yet terminated; to the trustees term of office is not yet ended; or three the trustee of a testamentary trust also acted as the personal representative of the settler and was or might have been compensated for services as a personal representatives from the settlor's estate.
Trustee Duties and Responsibilities
The duties and powers of trustees are covered in Section 7771-7780.7 and by a Montgomery County estate lawyer. The trustee has the following duties:
Duty to administer the trust: The trustee shall administer the trust in good faith, in accordance with the provisions of the trust and the purposes and interests of the beneficiaries and in accordance with applicable law.
Duty of loyalty: The trustee is a fiduciary and should administer the trust solely for the interests of the beneficiaries. Any transaction with the trustee that creates a conflict of interest must be authorized by the trust, approved by court, or have been authorized (or waived by inaction) of the beneficiary. The trustee must be impartial and very careful regarding the exercise of any transaction which presents a conflict between the trustee and the best interests of the beneficiary.
Impartiality: When the trust has more than two beneficiaries, the trustee shall act impartially in investing, managing and distributing the property. A trustee does not need to deal with all beneficiaries equally, but the trustee does have a duty to deal with beneficiaries equitably.
Prudent administration: The trustee shall administer the trust is a prudent person would, by considering the purposes, provisions, distribution requirements, and other circumstances of the trust and by exercising reasonable care, skill and caution.
Trustee's Skills: A trustee with special skills relevant to the trust administration must use those special skills or expertise in the ministration of the trust. Presumably, the trustee was selected by the settlor with the expectation they would use their skills.
Delegation: A trustee may delegate its duties to others, but it must exercise reasonable care, skill and caution in selecting agent, establishing the scope and specific terms of delegation, consist with the purposes and provisions of the trust, and reviewing periodically the agents actions in order to monitor the agents performance and compliance with the scope and specific terms of delegation. A trustee who complied with subsection (a) of section 7777 is not liable to the beneficiaries or the trust for whom the function was delegated.
Duty to inform and report: The trustee shall promptly respond to a beneficiaries reasonable request for information related to the trusts administration. Notice must be provided to beneficiaries of trusts when the settlor has been adjudicated incompetent or has died.
Their other duties for the trustee which include controlled protection of trust property, recordkeeping and identification of trust property, and enforcement and defense of claims.