Maryland Trustee Compensation Is Changing: What Families Need to Know in 2025

Starting October 1, 2025, trustee compensation in Maryland is getting a significant overhaul.

If you’re serving as a trustee or have named one in your estate plan, this change could affect how much trustees are paid and how that payment is determined.

What’s Changing?

Under current law, if a trust doesn’t say how the trustee should be paid, Maryland provides a default: a percentage of the trust’s income and principal. That means even if the trustee did very little, they could walk away with thousands just based on the size of the trust.

That’s now being replaced with a “reasonableness” standard. No more fixed formulas. Starting October 1:

1. Trustees without a filed schedule of fees

2. Managing trusts that don’t specify compensation

3. Will now be paid based on what’s reasonable under the circumstances

Who’s Affected?

This change does NOT apply to:

1. Banks and trust companies

2. Attorneys who’ve filed a schedule of rates

3. Trustees managing a trust that already says what their pay should be

It DOES apply to:

1. Family members and friends serving as trustees

2. Trustees handling small or informal trusts

3. Trustees who haven’t filed a fee schedule with the court

Why Does It Matter?

Because the old system was flawed.

1. Some trustees were doing very little but collecting large commissions.

2. Others, especially in small family trusts, were doing a ton of work and getting underpaid.

This new rule aims to strike a balance between fairness and flexibility.

What Should You Do Now?

If you’re:

1. Naming a trustee in a new trust: Consider including a clear compensation provision.

2. Currently serving as trustee: Keep good records of what you’re doing — you may need to justify your fees.

3. A beneficiary: You may have more leverage to question excessive or unfair trustee payments.

If you’re a trustee, personal representative, or beneficiary with questions about your rights or legal risks, contact us today.