How Trustee and Executor Fees Work

By FiduciaryCalculator Editorial · 7 min read · Updated 2026-06-11

Fiduciaries are entitled to reasonable compensation. Here's how executor commissions and trustee fees are typically calculated.

Fiduciaries get paid — reasonably

Serving as an executor or trustee is real work: marshaling assets, paying debts, filing taxes, managing investments, and dealing with beneficiaries. The law entitles fiduciaries to 'reasonable compensation' for that work, and the Trustee & Executor Fee Calculator estimates what that typically looks like.

Knowing the likely fee matters whether you are choosing a fiduciary, serving as one, or are a beneficiary trying to understand where estate money is going.

Executor commissions

Executors usually receive a one-time commission for settling the estate. Many states set this on a sliding scale tied to the size of the estate — for example, a higher percentage on the first $100,000 and progressively lower percentages on larger amounts. Our calculator models a representative tiered schedule.

Some states instead allow simply 'reasonable' compensation, and the will itself can specify a fee or waive it entirely. Family members serving as executor often waive the fee, partly because the commission is taxable income while an inheritance generally is not.

Trustee fees

Trustees of ongoing trusts are typically paid an annual fee, often expressed as a percentage of the assets under management — commonly around 0.5% to 1.5% per year, sometimes higher for small trusts or active management. Corporate trustees (banks and trust companies) publish fee schedules; individual trustees may charge a flat or hourly amount.

Because the fee is annual and compounds over the life of a long trust, the choice of trustee and fee structure has a real impact on what ultimately reaches beneficiaries.

Individual vs. corporate fiduciaries

A family member may serve for free or a modest fee but lacks investment and administrative expertise. A professional or corporate trustee charges more but brings continuity, recordkeeping, regulatory compliance, and impartiality — valuable when beneficiaries don't get along.

Many families split the difference with a co-trustee arrangement or by hiring an advisor to support a family trustee, paying for expertise without a full corporate-trustee fee.

Getting fees right in the document

The cleanest approach is to address compensation directly in the will or trust — specifying the fee, the method, or a reference to a corporate schedule — so there is no dispute later. Vague language invites conflict among beneficiaries and fiduciaries.

If you are drafting these documents, do so with care; document-preparation services cover simple cases, while larger estates benefit from an attorney who can tailor the fee provisions and a fee-only advisor to gauge what's reasonable.