Money · 5 min read
Reasonable compensation, or as the instrument specifies
R.C. 5807.08(A) provides that where the terms of a trust do not specify the trustee's compensation, the trustee is entitled to compensation that is reasonable under the circumstances. Where the terms specify it, the trustee is compensated as specified, but the court may allow more or less if the trustee's duties are substantially different from those contemplated when the trust was created or the specified compensation would be unreasonably low or high (R.C. 5807.08(B)) — a power the instrument cannot take away (R.C. 5801.04(B)(7)). An agreement between a trustee and a beneficiary on the trustee's compensation, and the payment of reasonable compensation, are not loyalty breaches unless the beneficiaries show them unfair (R.C. 5808.02(G)(2)).
Notice of a change, and the report
The trustee notifies the current beneficiaries in advance of any change in the method or rate of the trustee's compensation (R.C. 5808.13(B)(4)), and the trustee's report states the source and amount of the compensation (R.C. 5808.13(C)). Among the remedies for a breach of trust, the court may reduce or deny compensation (R.C. 5810.01(B)(8)).
Expenses, and the court-supervised trustee
A trustee is reimbursed out of the trust property, with interest as appropriate, for expenses properly incurred in the administration and, to the extent necessary to prevent the trust's unjust enrichment, for expenses not properly incurred; an advance for the protection of the trust creates a lien for reimbursement (R.C. 5807.09). A testamentary trustee under the probate court's supervision is compensated under the county's local rule, with additional compensation for extraordinary services on an itemized application, and no compensation while delinquent in filing an account (Civ.R. 73.24); a fiduciary removed for a late account receives no allowance for services unless the court finds the delay necessary and reasonable (R.C. 2109.24).
The statutes, verbatim
Compensation of trustee
R.C. 5807.08 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Reimbursement of trustee for administrative expenses
R.C. 5807.09 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Keeping beneficiaries informed - requests - required reports
R.C. 5808.13 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Breach of trust defined - judicial remedies
R.C. 5810.01 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Common questions
Does Ohio have a statutory trustee fee schedule?
No. Where the instrument is silent, the trustee is entitled to compensation reasonable under the circumstances (R.C. 5807.08(A)); a testamentary trustee under the probate court is paid under the county's local rule (Civ.R. 73.24).
Can a beneficiary challenge an Ohio trustee's fee?
The court may allow more or less than the instrument specifies where the duties are substantially different from those contemplated or the fee is unreasonably low or high (R.C. 5807.08(B)), and may reduce or deny compensation as a remedy for a breach of trust (R.C. 5810.01(B)(8)).
Must an Ohio trustee tell the beneficiaries about a fee change?
Yes. The trustee notifies the current beneficiaries in advance of any change in the method or rate of the trustee's compensation (R.C. 5808.13(B)(4)).
Related reading
The Learning Center is general information about Ohio law — not legal advice, and not a substitute for advice from a licensed Ohio attorney about your specific facts. TrusteeClear is software, not a law firm.
Frequently asked questions
- Does Ohio have a statutory trustee fee schedule?
- No. Where the instrument is silent, the trustee is entitled to compensation reasonable under the circumstances (R.C. 5807.08(A)); a testamentary trustee under the probate court is paid under the county's local rule (Civ.R. 73.24).
- Can a beneficiary challenge an Ohio trustee's fee?
- The court may allow more or less than the instrument specifies where the duties are substantially different from those contemplated or the fee is unreasonably low or high (R.C. 5807.08(B)), and may reduce or deny compensation as a remedy for a breach of trust (R.C. 5810.01(B)(8)).
- Must an Ohio trustee tell the beneficiaries about a fee change?
- Yes. The trustee notifies the current beneficiaries in advance of any change in the method or rate of the trustee's compensation (R.C. 5808.13(B)(4)).
General information about Ohio law, not legal advice.