Texas Trustee Compensation Calculator
Calculate fair trustee compensation in Texas. See estimated fees and after-tax amounts for family, professional, and corporate trustees.
Total value of assets in the trust
This determines how long the trustee will serve
What's Fair Compensation?
Answer a few questions to see typical trustee fees for your situation. Compare family, professional, and corporate trustees.
This tool helps:
Trustee compensation is typically "reasonable" based on the work involved, or what the trust document specifies. This calculator provides estimates based on industry norms. Consult the trust document and a licensed attorney for guidance specific to your situation.
Trustee Compensation in Texas
Trustees serving in Texas are entitled to "reasonable compensation" for managing trust assets. Unlike executor fees which may be set by statute, trustee compensation is typically determined by the trust document, negotiation, or what courts consider reasonable for the services provided.
Texas is one of nine states with no state income tax, which means trustees keep more of their compensation. However, trustee fees are still subject to federal income tax and self-employment tax (totaling approximately 25-35% of gross compensation).
Many Texas families choose a relative or friend to serve as trustee. Family trustees are entitled to the same compensation as professionals, though many choose to waive or reduce their fee. If the trustee is also a beneficiary, waiving compensation may make sense since trust distributions are generally not taxable income.
Professional trustees (attorneys, CPAs, financial advisors) in Texas typically charge 0.5-1.5% of trust assets annually. Corporate trustees (banks, trust companies) charge 1-2% with annual minimums of $3,000-$10,000+. For trusts that distribute immediately to adult beneficiaries, a one-time fee similar to executor compensation is typical.
Frequently Asked Questions
Trustee compensation in Texas depends on the type of trustee and the work involved. Family trustees typically receive 0-1% of trust assets annually (or waive fees entirely). Professional trustees charge 0.5-1.5%, while corporate trustees charge 1-2% with annual minimums. For trusts that distribute immediately and close, a one-time fee of 1-3% is typical.
Yes, trustee compensation is taxable income. However, Texas has no state income tax, so you'll only pay federal income tax and self-employment tax. This typically totals 25-35% of gross compensation. The trust can deduct the payment as an administrative expense.
Yes, family members serving as trustees in Texas are entitled to the same compensation as professional trustees. However, many family trustees choose to waive or reduce their fee, especially if they're also beneficiaries. If you accept payment, keep detailed records of your time and duties.
One-time fees apply when a trust distributes all assets and closes (similar to executor work). Annual fees apply when the trust continues for years - like trusts for minor children or special needs beneficiaries. The compensation model depends on your trust's purpose, not Texas law.
Since Texas has no state income tax, keeping compensation is more attractive than in high-tax states. However, if you're both trustee and beneficiary, you may still prefer to waive the fee since trust distributions are generally not taxable while trustee fees are subject to federal and self-employment taxes.
Keep detailed records of time spent on trust duties: investment management, tax filings, beneficiary communications, bill payments, and distributions. Document the complexity of the trust and any special skills you bring. If beneficiaries or courts question your fee, these records help demonstrate that compensation is reasonable for the work performed.
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