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Trustee compensation in Colorado: reasonable, explained, and reported

Paying yourself as trustee is allowed — and it is also the transaction beneficiaries look at first. This guide explains how Colorado sets a trustee's compensation and what the statute asks a trustee to tell the beneficiaries about it.

El texto completo de esta guía está en inglés; el resumen anterior está en su idioma. Los resúmenes de las leyes y el inglés siguen siendo la fuente de referencia.

Compensation · 6 min de lectura

The trust's terms, or reasonable compensation

Where a trust's terms specify the trustee's compensation, the trustee is entitled to it, though a court may allow more or less if it would be unreasonably low or high (C.R.S. §15-5-708(2)). Where the terms are silent, the trustee's compensation is determined under part 6 of article 10 of title 15 (§15-5-708(1)), which entitles a fiduciary to reasonable compensation (§15-10-602(1)); the statute sets no fee schedule of its own.

A trustee is also reimbursed from the trust property for expenses properly incurred in the administration, with interest as appropriate (C.R.S. §15-5-709).

What "reasonable" weighs

C.R.S. §15-10-603 lists the factors a court considers in reviewing compensation — among them the time and labor required, the novelty and difficulty of the questions and the skill required; the compensation customarily charged in the community; the nature and size of the estate and the results obtained; any litigation; and the time limitations involved. No method of charging is presumed unreasonable.

Once a fiduciary receives notice of proceedings for removal, compensation and attorney fees are not paid from the estate without a court order, and a court orders refunds of excessive compensation (C.R.S. §15-10-602(5)).

Telling the beneficiaries

A trustee notifies the qualified beneficiaries in advance of any change in the method or rate of the trustee's compensation (C.R.S. §15-5-813(2)(d)), and every report shows the source and amount of the trustee's compensation (§15-5-813(3)(a)).

Many trustees keep a simple log of time and tasks from the first day; it is the record a reasonableness question would turn on.

When a trustee is also a beneficiary

Compensation is a payment to the trustee, which is why it sits close to the duty of loyalty (C.R.S. §15-5-802). A trustee who is also a beneficiary may take reasonable compensation like any trustee; questions about the amount or the method are the kind many trustees bring to a licensed Colorado attorney of their choosing before taking it.

Las leyes, textualmente

  • Recovery of reasonable compensation and costs

    C.R.S. §15-10-602 ↗

    Explicación clara y sencilla; el texto literal del estatuto aún no está atestiguado en nuestra biblioteca. Consulte el estatuto oficial en el enlace de arriba.

  • Factors in determining the reasonableness of compensation and costs

    C.R.S. §15-10-603 ↗

    Explicación clara y sencilla; el texto literal del estatuto aún no está atestiguado en nuestra biblioteca. Consulte el estatuto oficial en el enlace de arriba.

  • Compensation of trustee

    C.R.S. §15-5-708 ↗

    Explicación clara y sencilla; el texto literal del estatuto aún no está atestiguado en nuestra biblioteca. Consulte el estatuto oficial en el enlace de arriba.

  • Duty to inform and report

    C.R.S. §15-5-813 ↗

    Explicación clara y sencilla; el texto literal del estatuto aún no está atestiguado en nuestra biblioteca. Consulte el estatuto oficial en el enlace de arriba.

Preguntas frecuentes

Does Colorado set a statutory fee for trustees?

No. Where the trust's terms do not set compensation, a Colorado trustee's compensation is determined under part 6 of article 10 of title 15 (C.R.S. §15-5-708(1)) — reasonable compensation (§15-10-602(1)), weighed by the factors of §15-10-603.

Does a Colorado trustee have to tell beneficiaries about a fee change?

Yes: a trustee notifies the qualified beneficiaries in advance of any change in the method or rate of compensation (C.R.S. §15-5-813(2)(d)).

Can a court change a trustee's compensation set in the trust?

Yes, if the compensation the terms specify would be unreasonably low or high (C.R.S. §15-5-708(2)).

El Centro de Aprendizaje es información general sobre la ley de Colorado — no es asesoría legal ni sustituye el consejo de un abogado de Colorado con licencia sobre sus hechos específicos. TrusteeClear es software, no un bufete.