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Maryland Trustee compensation: Est. & Trusts § 14.5-708, explained

If the Trust specifies the Trustee's compensation, that generally controls, though the court may allow more or less where the duties changed or the figure is unreasonably low or high; if it is silent, Est. & Trusts § 14.5-708 provides for compensation that is reasonable under the circumstances. A schedule of rates is open only to a supervised financial institution or a member of the Maryland Bar, or to another individual with the circuit court's approval. Here is how Maryland approaches the number — and why paying yourself is a decision to paper carefully.

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How Maryland approaches the number

  • Trust terms first. If the instrument specifies compensation, the Trustee is entitled to what it says — though a court may allow more or less if the duties turn out substantially different from those contemplated, or the specified amount is unreasonably low or high.
  • If the Trust is silent: compensation reasonable under the circumstances. There is no statutory percentage for Maryland Trustees — courts weigh things like the size of the Trust, the work actually performed, the skill required, and customary charges.
  • Professional help is separate: expenses properly incurred are reimbursed from the Trust (Est. & Trusts § 14.5-709), and a report on request states the source and amount of your compensation (Est. & Trusts § 14.5-813(c)). Among the remedies for a breach of trust, the court may reduce or deny compensation (Est. & Trusts § 14.5-901); family Trustees commonly charge modestly or waive — choices, not requirements.
  • Don't confuse it with the attorney's fee. The Trustee's own compensation is governed by Est. & Trusts § 14.5-708; the attorney the Trustee hires is paid the fee they agree — Maryland sets no presumptive attorney fee for trust administration.

The governing provisions

  • Discretionary powers

    Est. & Trusts § 14.5-203 ↗

    Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

  • Compensation of trustee

    Est. & Trusts § 14.5-708 ↗

    Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

  • Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

Why paying yourself needs care

  • Paying yourself is a self-interested act by a fiduciary — the duty of loyalty (Est. & Trusts § 14.5-802) is in the room. Document the basis, the rate, the time, and the work before the money moves.
  • If you are also a beneficiary, the line between compensation and distribution matters: Est. & Trusts § 14.5-203 limits self-dealing discretion, and compensation that looks like a disguised distribution invites challenge.
  • Beneficiaries will see it: compensation appears in the Trust accounting (Est. & Trusts § 14.5-813(c)). A number that surprises them there is how disputes start.
  • TrusteeClear treats paying yourself as a gated action — the record is assembled before the payment, and a firm-supervised matter routes it to the attorney first.

General information about Maryland law, not legal advice.

Frequently asked questions

How is a Maryland trustee paid?
As the trust provides — though a court may authorize more or less — or, if it is silent, with compensation reasonable under the circumstances (Est. & Trusts § 14.5-708(a)), judged by the eight factors of Est. & Trusts § 14.5-708(b). Maryland sets no percentage for an individual trustee.
Must a Maryland trustee tell the beneficiaries about fees?
A report on a qualified beneficiary's request states the source and amount of the trustee's compensation (Est. & Trusts § 14.5-813(c)(1)), and a trustee that files a schedule of rates notifies the qualified beneficiaries personally or by certified mail, with a statement of their right to petition for review (Est. & Trusts § 14.5-708(d)(4)).
Can a Maryland trustee be reimbursed for expenses?
Yes, with interest as appropriate, for expenses properly incurred in the administration of the trust (Est. & Trusts § 14.5-709).

General information about Maryland law, not legal advice.