In Ohio, a trustee is entitled to the compensation the trust document specifies, and if the document is silent, to compensation that is reasonable under the circumstances, under R.C. 5807.08. Ohio law sets no fixed statutory percentage for trustees, which is different from the percentage fees Ohio law fixes for executors.

At a glance

Ohio trustees have no fixed statutory fee. Under R.C. 5807.08 a trustee is paid what the trust specifies or a reasonable amount, unlike executors whose fees are set by percentage.

How much does a trustee get paid in Ohio? A trustee in Ohio gets paid whatever the trust document specifies, and if the document says nothing, compensation that is reasonable under the circumstances under R.C. 5807.08.
What is a reasonable trustee fee? A reasonable trustee fee under R.C. 5807.08 is one that fits the circumstances of the particular trust.
How are corporate trustee fees different from family trustee fees? Corporate trustees, such as banks and trust companies, publish fee schedules and usually charge an annual fee tied to the value of the trust’s assets.
Can the trust document set the trustee’s fee? Yes.
Can a court change the trustee’s compensation? Yes.
Are trustee expenses reimbursed? Yes.

How much does a trustee get paid in Ohio?

A trustee in Ohio gets paid whatever the trust document specifies, and if the document says nothing, compensation that is reasonable under the circumstances under R.C. 5807.08. Ohio law fixes no percentage for trustees. The amount depends on the trust’s size, its complexity, and the work the role actually requires.

R.C. 5807.08 governs trustee compensation. Ohio sets no fixed percentage for a trustee’s fee. This is a real point of contrast with executors. An executor of a probate estate is paid on a statutory percentage schedule under R.C. 2113.35, which allows four percent of the first one hundred thousand dollars of personal property and proceeds of real property sold, three percent of the next three hundred thousand dollars, and two percent above four hundred thousand dollars. A trustee has no equivalent percentage. Because a living trust is administered outside probate, the trustee’s pay is set by the trust terms and the reasonableness standard rather than by a fee table.

What is a reasonable trustee fee?

A reasonable trustee fee under R.C. 5807.08 is one that fits the circumstances of the particular trust. Ohio does not define a single number. Reasonableness turns on factors like the size of the trust, the complexity of its assets, and the time and skill the trustee must supply to administer it properly.

R.C. 5807.08 uses a reasonableness standard rather than a formula. Several factors inform what is reasonable. The size and complexity of the trust affect the fee, since a trust holding a business or rental real estate demands more than a trust holding a single bank account. The time and skill the role requires affect the fee. Whether the trustee is a professional or corporate trustee or a family member affects the fee, because a professional brings a higher hourly cost and a published rate. The results the trustee achieves and local custom in the county can also inform the amount. These factors track the duties an Ohio trustee owes, since a trustee earns compensation by actually performing those duties.

How are corporate trustee fees different from family trustee fees?

Corporate trustees, such as banks and trust companies, publish fee schedules and usually charge an annual fee tied to the value of the trust’s assets. Family trustees, by contrast, often serve for a modest fee or waive compensation entirely. Both remain entitled to reasonable compensation under R.C. 5807.08 unless the trust says otherwise.

A corporate trustee charges under a published fee schedule. The schedule is commonly expressed as a percentage of the trust’s asset value, often tiered so the percentage falls as the trust grows. Each corporate trustee publishes and sets its own rate, so the exact percentage depends on the institution and on the size and complexity of the trust. A family trustee usually charges less or nothing. A surviving spouse or adult child serving as trustee frequently waives a fee, treats the role as a family responsibility, or takes only out of pocket costs. Both remain entitled to reasonable compensation under R.C. 5807.08, so a family trustee who does substantial work can still be paid, and someone weighing whether to accept the role should read a practical guide to serving as a trustee before deciding.

Can the trust document set the trustee’s fee?

Yes. Under R.C. 5807.08, if the terms of the trust specify the trustee’s compensation, the trustee is entitled to be compensated as specified. A trust can also set a formula, cap the fee, tie it to a corporate trustee’s published schedule, or direct that the trustee serve without compensation. The document controls unless a court adjusts it.

The trust document can fix the trustee’s fee. The person creating the trust, the settlor, decides at drafting time how the trustee will be paid. A settlor can name a dollar amount, a percentage, an hourly approach, or no fee at all. A settlor can also incorporate a corporate trustee’s fee schedule by reference so the institution is paid at its standard rate. Building this term into a living trust at the outset avoids a later dispute about what the trustee should receive. When the document is silent, the reasonableness standard in R.C. 5807.08 fills the gap.

Can a court change the trustee’s compensation?

Yes. Under R.C. 5807.08(B), a court may allow more or less than the trust specifies in two defined situations: when the trustee’s duties are substantially different from those contemplated when the trust was created, or when the compensation the terms specify would be unreasonably low or high.

R.C. 5807.08(B) lets a court adjust a specified fee. The power is not open ended. A court can raise a fee that is unreasonably low, which protects a trustee whose work far exceeded what the settlor anticipated. A court can reduce a fee that is unreasonably high, which protects beneficiaries from a windfall to the trustee. A court can also revisit compensation when the trustee’s actual duties turned out to be substantially different from those the settlor had in mind. A beneficiary who believes a fee is wrong raises the issue in the probate division of the county Court of Common Pleas, often in connection with the administration of the trust after the grantor’s death.

Are trustee expenses reimbursed?

Yes. Separate from compensation, a trustee is entitled under R.C. 5807.09 to reimbursement from the trust for expenses properly incurred in administering the trust. Reasonable costs, such as accounting fees, legal fees, and property upkeep, come out of trust property, and an advance the trustee makes to protect the trust can create a lien.

R.C. 5807.09 governs reimbursement of trustee expenses. Reimbursement is distinct from the trustee’s fee. The fee pays the trustee for the work; reimbursement returns money the trustee laid out for the trust. A trustee is reimbursed with interest as appropriate for expenses properly incurred, and, to the extent needed to prevent unjust enrichment of the trust, even for some expenses not properly incurred. An advance of money by the trustee to protect trust property gives rise to a lien against trust property to secure repayment with reasonable interest. On the tax side, compensation a trustee receives for services is generally taxable income to the trustee, and the trust may be able to deduct fees it pays, though the exact treatment depends on the situation and should be confirmed with a qualified tax advisor.

Frequently Asked Questions

Does Ohio have a set percentage for trustee fees?

No. Ohio law fixes no percentage for trustee compensation. Under R.C. 5807.08, a trustee is entitled to what the trust specifies, or to compensation that is reasonable under the circumstances when the trust is silent. This differs from executors, whose fees follow the percentage schedule in R.C. 2113.35.

Are a trustee’s fees paid before beneficiaries receive distributions?

Generally yes. A trustee’s reasonable compensation and properly incurred expenses are paid from trust property as costs of administration, before the trustee distributes what remains to the beneficiaries. R.C. 5807.08 governs the fee and R.C. 5807.09 governs expense reimbursement, both of which come out of the trust itself.

Can a family member serve as trustee for free in Ohio?

Yes. A trust document can direct that the trustee serve without compensation, and many family trustees waive a fee even when the trust would allow one. Under R.C. 5807.08, the trustee remains entitled to reasonable compensation unless the terms provide otherwise or the trustee chooses to decline it.

Are trustee fees taxable in Ohio?

Generally, compensation a trustee receives for services is taxable income to the trustee, and the trust may be able to deduct fees it pays. The exact treatment depends on the trust and the trustee’s situation, so a trustee should confirm the tax result with a qualified tax advisor before relying on it.

How does a trustee’s fee compare to an executor’s fee in Ohio?

An executor’s fee follows a fixed percentage schedule under R.C. 2113.35, starting at four percent of the first one hundred thousand dollars of probate assets. A trustee’s fee has no fixed percentage. Under R.C. 5807.08, it is whatever the trust specifies or a reasonable amount when the trust is silent.

Who decides a trustee’s fee if a beneficiary objects?

If a beneficiary disputes a trustee’s compensation, the probate court decides. Under R.C. 5807.08(B), the court may allow more or less than the trust specifies when the trustee’s duties differ substantially from those contemplated or the stated compensation is unreasonably low or high. The court reviews reasonableness based on the circumstances.

Discuss your next step

Serving as trustee involves real work, and compensation deserves a clear, well-documented approach. Begin addressing the terms before paying a fee, so the trustee’s responsibilities and the beneficiaries’ interests receive proper attention. Take the first step by scheduling a complimentary 15-minute Strategy Session with Intake Services, so we can learn what matters to you and discuss the next step.