§ 7768. Compensation of trustee - UTC 708.
(a) If unspecified.--If neither the terms of a trust nor a separate written agreement signed by the settlor
or anyone who is authorized by the terms of the trust to do so specifies the trustee's
compensation, the trustee is entitled to compensation that is reasonable under the
circumstances. Neither a compensation provision in the terms of a trust nor a fee
agreement governs compensation payable from trust principal unless it explicitly so
provides.
(b) If specified; adjustment.--If the terms of a trust or written fee agreement signed by the settlor or anyone who
is authorized by the terms of the trust to do so specifies a trustee's compensation,
the trustee is entitled to the specified compensation. The court may allow reasonable
compensation that is more or less than that specified if:
(1) the duties of the trustee have become substantially different from those contemplated
when the trust was created or when the fee agreement was executed;
(2) the compensation specified in the terms of the trust or fee agreement would be unreasonable;
or
(3) the trustee performed extraordinary services, and the trustee's compensation for those
services is not specified in the terms of the trust or fee agreement.
(c) Entitlement not barred.--None of the following shall bar a trustee's entitlement to compensation from the income
or principal of the trust:
(1) The trust is perpetual or for any other reason has not yet terminated.
(2) The trustee's term of office has not yet ended.
(3) The trustee of a testamentary trust also acted as a personal representative of the
settlor and was or might have been compensated for services as a personal representative
from the principal of the settlor's estate.
(d) Court authority.--In determining reasonable compensation, the court may consider, among other facts,
the market value of the trust and may determine compensation as a fixed or graduated
percentage of the trust's market value. The court may allow compensation from principal,
income or both and determine the frequency with which compensation may be collected.
Compensation at levels that arise in a competitive market shall be presumed to be
reasonable in the absence of compelling evidence to the contrary.
(e) Cemetery lots.--The authority in this section to pay compensation from trust principal shall not apply
to trusts created by cemetery lot owners as endowments for the endowed care and maintenance
of burial or cemetery lots if the principal sum involved is less than $20,000. Compensation
shall be paid exclusively from the income of such trusts.
(July 15, 2024, P.L.786, No.64, eff. 90 days)
2024 Amendment. Act 64 amended subsecs. (a) and (b). See section 11 of Act 64 in the appendix to this
title for special provisions relating to Uniform Trust Code.
Cross References. Section 7768 is referred to in sections 7705, 7780.27 of this title.
Notes of Decisions
Trust Under Deed of Ott, W., Appeal of: PNC Bank, 2021 Pa. Super. 203 (Pa. Super. Ct. 2021).
· cites it 4× “On May 3, 2019, Objectors filed Objections to the Third Account, later amended with permission, asserting that (1) the additional compensation sought by PNC was excessive and unreasonable; (2) Section 7768 of the Uniform Trust Act, 20 Pa.C.S. § 7768, if applicable, did not…”
Est. of Fridenberg v. Commonwealth, 33 A.3d 581 (Pa. 2011).
· cites it 2× “The court may allow compensation from principal, income or both and determine the frequency with which compensation may be collected. Compensation at levels that arise in a competitive market shall be presumed to be reasonable in the absence of compelling evidence to the…”
Est. of Black v. Comm'r, 2012 T.C. Memo. 63 (Tax Ct. 2012).
· cites it 7× “Stat. Ann. sec. 7768(a) (West 2005 & Supp.”
Trust Under Will of Ashton, A.; Apl of: Reed, E. (Pa. 2021).
· cites it 2× “20 Pa.C.S. §7768, Uniform Law Comment (noting the UTA grants the trustee authorization to fix its own compensation without court approval, but that authorization is “subject to the right of a beneficiary to object to the compensation in a later judicial proceeding”).”
In re Trusts, 48 Pa. D. & C.5th 353 (2015).
· cites it 2× “According to the objectors, the trustees have failed to justify an increase under 20 Pa.C.S. § 7768(b). 5 The objectors note that the accountant might also obtain higher compensation under 20 Pa.”
In Re: Chen, A., Trust No. 1, Appeal of: Chen, A. (Pa. Super. Ct. 2018).
“See 20 Pa.C.S. § 7768. At all times, the Trustees’ fees were reasonable and the Trustees’ actions have been competent, professional, proper, legal, exercised in good faith, and predicated upon the advice of trust counsel and professional tax and investment managers and advisers,…”
— 20 Pa. Cons. Stat. § 7768(a) — 1 case
Est. of Fridenberg v. Commonwealth, 33 A.3d 581 (Pa. 2011).
“The court may allow compensation from principal, income or both and determine the frequency with which compensation may be collected. Compensation at levels that arise in a competitive market shall be presumed to be reasonable in the absence of compelling evidence to the…”
— 20 Pa. Cons. Stat. § 7768(b) — 3 cases
Trust Under Deed of Ott, W., Appeal of: PNC Bank, 2021 Pa. Super. 203 (Pa. Super. Ct. 2021).
“On May 3, 2019, Objectors filed Objections to the Third Account, later amended with permission, asserting that (1) the additional compensation sought by PNC was excessive and unreasonable; (2) Section 7768 of the Uniform Trust Act, 20 Pa.C.S. § 7768, if applicable, did not…”
In re Trusts, 48 Pa. D. & C.5th 353 (2015).
“According to the objectors, the trustees have failed to justify an increase under 20 Pa.C.S. § 7768(b). 5 The objectors note that the accountant might also obtain higher compensation under 20 Pa.”
Trust Under Will of Ashton, A.; Apl of: Reed, E. (Pa. 2021).
“20 Pa.C.S. §7768, Uniform Law Comment (noting the UTA grants the trustee authorization to fix its own compensation without court approval, but that authorization is “subject to the right of a beneficiary to object to the compensation in a later judicial proceeding”).”
— 20 Pa. Cons. Stat. § 7768(d) — 3 cases
Trust Under Deed of Ott, W., Appeal of: PNC Bank, 2021 Pa. Super. 203 (Pa. Super. Ct. 2021).
“On May 3, 2019, Objectors filed Objections to the Third Account, later amended with permission, asserting that (1) the additional compensation sought by PNC was excessive and unreasonable; (2) Section 7768 of the Uniform Trust Act, 20 Pa.C.S. § 7768, if applicable, did not…”
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