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Tennessee Trustee compensation: Tenn. Code Ann. § 35-15-708, explained

Tennessee sets no statutory fee schedule for Trustees. If the Trust specifies compensation, that generally controls, with the court's power to allow more or less where the duties differ substantially from those contemplated or the figure is unreasonable (Tenn. Code Ann. § 35-15-708); if it is silent, the Trustee is entitled to compensation that is reasonable under the circumstances, unless a living settlor or a majority of the qualified beneficiaries agreed otherwise, and a regulated institution's published schedule is presumed reasonable. Here is how Tennessee approaches the number — and why paying yourself is a decision to paper carefully.

Serving as Trustee and wondering what you may charge?

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How Tennessee 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 Tennessee 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 with interest, and the Trustee may pay them directly, attorney's fees in defending an action included, subject to the court's power (Tenn. Code Ann. § 35-15-709). A beneficiary's claim for breach runs one year from adequate disclosure or actual knowledge (Tenn. Code Ann. § 35-15-1005), and a Trustee who commits a breach is liable for the loss or the profit (Tenn. Code Ann. § 35-15-1001); 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 Tenn. Code Ann. § 35-15-708; the attorney the Trustee hires is paid the fee they agree — Tennessee sets no presumptive attorney fee for trust administration.

The governing provisions

  • Compensation of trustees, trust advisors and trust protectors

    Tenn. Code Ann. § 35-15-708 ↗

    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

    Tenn. Code Ann. § 35-15-802 ↗

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

  • Exercise of powers over discretionary and other interests; tax savings

    Tenn. Code Ann. § 35-15-814 ↗

    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 (Tenn. Code Ann. § 35-15-802) 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: Tenn. Code Ann. § 35-15-814 limits self-dealing discretion, and compensation that looks like a disguised distribution invites challenge.
  • Beneficiaries will see it: compensation appears in the Trust accounting (Tenn. Code Ann. § 35-15-813(a)(1)). 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 Tennessee law, not legal advice.

Frequently asked questions

How is a Tennessee trustee paid?
As the trust provides — though a court may allow more or less where the duties differ substantially from those contemplated or the figure is unreasonably low or high (Tenn. Code Ann. § 35-15-708(b)) — or, if it is silent, with compensation reasonable under the circumstances, unless a living settlor or a majority of the qualified beneficiaries agreed otherwise (Tenn. Code Ann. § 35-15-708(a)). Tennessee sets no percentage for an individual trustee.
Is a bank's fee schedule reasonable in Tennessee?
A trustee regulated by the Department of Financial Institutions, another state's equivalent or the federal regulators may charge according to its published fee schedule, which is presumed reasonable (Tenn. Code Ann. § 35-15-708(d)); for any other trustee the court's factors decide what is reasonable (Tenn. Code Ann. § 35-15-708(c)).
Can a Tennessee trustee be reimbursed for expenses?
Yes, with interest as appropriate, for expenses properly incurred in the administration of the trust, and the trustee may pay them directly from the trust property subject to the court's power to stop a disbursement or order repayment (Tenn. Code Ann. § 35-15-709).

General information about Tennessee law, not legal advice.