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• Reasonable Compensation

  The standard under California Probate Code § 15681 for determining trustee fees when the trust document itself does not specify the compensation (or specifies an unreasonable amount). Unlike probate executor fees, there is no fixed statutory schedule for trustees. “Reasonableness” depends on the circumstances, considering factors like the time and effort required, the complexity of the trust assets and administration, the trustee’s skill and expertise, the risks assumed, the results achieved, and customary fees for similar services in the community. Trustee compensation is subject to review by the probate court.

• Recovery of Attorney’s Fees (From Estate)

  Refers to situations where attorney fees incurred during the administration or litigation involving a decedent’s probate estate can be paid directly from the estate’s assets. Under California law, this typically includes reasonable fees for the attorney hired by the personal representative (executor or administrator) for necessary services in administering the estate (subject to court approval, see Cal. Prob. Code § 10810, § 10811). Fees may also be recoverable from the estate by an heir or beneficiary under specific circumstances, such as when their legal action provides a substantial benefit to the estate as a whole (e.g., under the “common fund” doctrine), but generally, beneficiaries pay their own fees for disputes concerning their individual shares.

• Recovery of Attorney’s Fees (From Trust)

  Refers to situations where attorney fees incurred in matters related to a trust can be paid directly from the trust’s assets. In California, this is generally allowed when:

  • The trustee incurs reasonable attorney fees for administering the trust properly, defending the trust against attack, or seeking necessary instructions from the court for the trust’s benefit (Cal. Prob. Code § 15684 allows reimbursement for proper expenses).
  • A beneficiary successfully brings or defends an action that provides a substantial benefit to the trust itself (e.g., recovering misappropriated assets, preserving the trust).
  • The trust instrument specifically provides for payment of attorney fees in certain disputes. Payment from the trust is subject to court review for reasonableness and necessity, particularly if objections are raised.

• Recovery of Attorneys’ Fees (From Trustee)

  Refers to situations where a trustee can be ordered by the California Probate Court to pay attorney fees using their own personal funds, rather than trust assets. This typically occurs as an exception to the general rule that parties pay their own fees. Such an order might be made against a trustee if:

  • The trustee committed a breach of trust in bad faith, unreasonably, or without justification, causing beneficiaries to incur fees (e.g., Cal. Prob. Code § 17211(b) allows fees against a trustee who contests an accounting in bad faith).
  • The trustee unreasonably or in bad faith brought or defended a proceeding related to the trust.
  • The court denies the trustee’s request to have their own defense fees paid from the trust because they were defending their own wrongdoing. Awarding fees against a trustee personally often requires a showing of bad faith or specific statutory authorization.

• Removal of Trustee

  The permanent dismissal of a trustee from their position by an order of the California Probate Court, typically initiated by a petition from a beneficiary, co-trustee, or other interested party. Under California Probate Code § 15642, grounds for removal include serious breach of trust, trustee unfitness (e.g., incapacity, insolvency), failure or refusal to act, inability to cooperate with co-trustees which impairs administration, charging excessive compensation, or other good cause. A removed trustee must cease managing the trust, provide a final accounting, and transfer trust assets to a successor trustee.

• Revocable Trust (Revocable Living Trust / Inter Vivos Trust)

  A trust created by a person (the grantor/settlor) during their lifetime, where the grantor generally retains the power to amend, revoke, or change the trust terms and beneficiaries. The grantor often serves as the initial trustee. Its primary purposes are typically to manage assets during the grantor’s lifetime (including periods of incapacity through a successor trustee) and to avoid probate upon the grantor’s death by allowing assets titled in the trust’s name to pass directly to beneficiaries according to the trust’s terms. Assets must be formally transferred (funded) into the trust to achieve probate avoidance. It becomes irrevocable upon the grantor’s death. (See also: Trust, Testamentary Trust)