Compensation · 6 min read
The rule
20 Pa.C.S. §7768 provides that, where neither the trust's terms nor a written agreement signed by the settlor or another authorized person specifies it, a trustee is entitled to compensation that is reasonable under the circumstances. Pennsylvania has no fee schedule.
Neither a compensation term nor a fee agreement governs payment from principal unless it explicitly says so (20 Pa.C.S. §7768). Where compensation is specified, the court may allow more or less in the circumstances the section states.
Reimbursement is separate
A trustee is entitled to reimbursement from the trust property, with interest as appropriate, for expenses properly incurred in the administration (20 Pa.C.S. §7769). Hiring an accountant or an attorney for the administration is an expense, not compensation.
Why the record matters
Paying yourself is a transaction in which your personal and fiduciary interests meet, so the duty of loyalty is in the room (20 Pa.C.S. §7772). A court may reduce or deny compensation as a remedy for a breach of trust (§7781). A record of the time spent, the tasks and the basis for the amount — shown in the financial reports a current beneficiary may request (§7780.3(i)(5)) — is what lets a beneficiary see the number before questioning it.
The statutes, verbatim
Compensation of trustee - UTC 708
20 Pa.C.S. §7768 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Reimbursement of expenses - UTC 709
20 Pa.C.S. §7769 ↗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 - UTC 802
20 Pa.C.S. §7772 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Remedies for breach of trust - UTC 1001
20 Pa.C.S. §7781 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Common questions
How much can a Pennsylvania trustee charge?
What the trust's terms or a written fee agreement specify; otherwise compensation that is reasonable under the circumstances (20 Pa.C.S. §7768). There is no statutory percentage.
Can a Pennsylvania trustee take compensation from principal?
Neither a compensation term nor a fee agreement governs payment from principal unless it explicitly says so (20 Pa.C.S. §7768).
Are a trustee's expenses compensation in Pennsylvania?
No. Expenses properly incurred in the administration are reimbursed from the trust property (20 Pa.C.S. §7769), separately from compensation.
Related reading
The Learning Center is general information about Pennsylvania law — not legal advice, and not a substitute for advice from a licensed Pennsylvania attorney about your specific facts. TrusteeClear is software, not a law firm.
Frequently asked questions
- How much can a Pennsylvania trustee charge?
- What the trust's terms or a written fee agreement specify; otherwise compensation that is reasonable under the circumstances (20 Pa.C.S. §7768). There is no statutory percentage.
- Can a Pennsylvania trustee take compensation from principal?
- Neither a compensation term nor a fee agreement governs payment from principal unless it explicitly says so (20 Pa.C.S. §7768).
- Are a trustee's expenses compensation in Pennsylvania?
- No. Expenses properly incurred in the administration are reimbursed from the trust property (20 Pa.C.S. §7769), separately from compensation.
General information about Pennsylvania law, not legal advice.