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Michigan Trustee compensation: MCL 700.7708, explained

Michigan sets no statutory fee for Trustees. If the Trust sets compensation, that generally controls; if it is silent, MCL 700.7708 provides for compensation that is reasonable under the circumstances. Here is how Michigan approaches the number — and why paying yourself is a decision to paper carefully.

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How Michigan 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 Michigan 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 (MCL 700.7709), and a change in the method or rate of your compensation is noticed to the qualified trust beneficiaries in advance (MCL 700.7814(2)(d)). Where compensation is specified, the court may allow more or less in the circumstances MCL 700.7708 states; 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 MCL 700.7708; the attorney the Trustee hires is paid the fee they agree — Michigan sets no presumptive attorney fee for trust administration.

The governing provisions

  • Compensation of trustee

    MCL 700.7708 ↗

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

  • Duty of loyalty

    MCL 700.7802 ↗

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

  • Discretionary powers; abuse; liability to beneficiary; rules; effect of limited or prohibited powers; exceptions

    MCL 700.7815 ↗

    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 (MCL 700.7802) 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: MCL 700.7815 limits self-dealing discretion, and compensation that looks like a disguised distribution invites challenge.
  • Beneficiaries will see it: compensation appears in the Trust accounting (MCL 700.7814(3)). 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 Michigan law, not legal advice.

Frequently asked questions

How is a Michigan trustee paid?
As the trust's terms specify; where they do not, the trustee is entitled to compensation that is reasonable under the circumstances (MCL 700.7708(1)). Michigan has no fee schedule.
Can a court change a Michigan trustee's compensation?
Yes. Where the terms specify it, the court may allow more or less if the duties are substantially different from those contemplated or the specified amount would be unreasonably low or high (MCL 700.7708(2)); and the court may reduce or deny compensation with respect to a breach of trust (MCL 700.7904(3), 700.7901).
Does a Michigan trustee have to tell beneficiaries about a fee change?
Michigan's statute provides for notice to the qualified trust beneficiaries in advance of any change in the method or rate of the trustee's compensation (MCL 700.7814(2)(d)), and the annual report states the compensation's source and amount (MCL 700.7814(3)).

General information about Michigan law, not legal advice.