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Pennsylvania Trustee compensation: 20 Pa.C.S. §7768, explained

Pennsylvania sets no statutory fee for Trustees. If the Trust or a written fee agreement sets compensation, that generally controls; if neither does, 20 Pa.C.S. §7768 provides for compensation that is reasonable under the circumstances. Here is how Pennsylvania approaches the number — and why paying yourself is a decision to paper carefully.

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How Pennsylvania 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 Pennsylvania 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 (20 Pa.C.S. §7769), and neither the Trust's terms nor a fee agreement governs payment from principal unless it explicitly says so (§7768). Where compensation is specified, the court may allow more or less in the circumstances §7768 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 20 Pa.C.S. §7768; the attorney the Trustee hires is paid the fee they agree — Pennsylvania sets no presumptive attorney fee for trust administration.

The governing provisions

  • 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.

  • 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.

  • Discretionary powers

    20 Pa.C.S. §7780.4 ↗

    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 (20 Pa.C.S. §7772) 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: 20 Pa.C.S. §7780.4 limits self-dealing discretion, and compensation that looks like a disguised distribution invites challenge.
  • Beneficiaries will see it: compensation appears in the Trust accounting (20 Pa.C.S. §7780.3(i)(5)). 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 Pennsylvania law, not legal advice.

Frequently asked questions

How is a Pennsylvania trustee paid?
As the trust's terms or a written fee agreement provide; where neither does, the trustee is entitled to compensation that is reasonable under the circumstances, and neither governs payment from principal unless it explicitly says so (20 Pa.C.S. §7768). Pennsylvania has no fee schedule.
Can a court change a Pennsylvania trustee's compensation?
Yes. Where the terms specify compensation, the court may allow more or less in the circumstances §7768 states — for example, where the duties turn out substantially different from those contemplated (20 Pa.C.S. §7768); and the court may reduce or deny compensation as a remedy for a breach of trust (§7781).

General information about Pennsylvania law, not legal advice.