2.  No compensation unless settlor provided for compensation in the trust.  Policy – fear that trustee would act to increase compensation even if not in trust’s best interests.

3. Assuming trust instrument is silent:  1. Court Determination  Trustee petitions court for compensation approval.

4.  2. Trustee Determination  Trustee determines reasonable compensation.  Trustee takes from trust.  Interested persons may sue trustee for taking excessive compensation.

5.  3. Schedule or Scale  Based on, for example, ▪ Value of trust ▪ Amount of trust income

6.  Presumption = reasonable compensation  Exceptions:  Settlor provides otherwise ▪ No compensation ▪ Exact amount ▪ Method  Court may deny compensation if trustee breaches the trust. § 113.082

7.  Should settlor waive compensation?  Should settlor provided a fixed fee?  Should settlor “shop around” for fees if using corporate trustee?

8.  1. Gross income of trust

9.  2. Success or failure of trust administration

10.  3. Trustee’s skill and experience

11.  4. Trustee’s fidelity or disloyalty

12.  5. Amount of trustee’s liability exposure and responsibilities assumed

13.  6. Time spent

14.  7. Custom in the community

15.  8. Character of work  Skill and judgment, or  Routine

16.  9. Trustee’s estimate of value of services