Guardian compensation is legal, common, and — when done loosely — the fastest way to lose the fee, the bond premium, or the appointment itself. The difference is always documentation.
Statutory commission. Many states publish percentages — commonly something like up to 5% of income received and 3–5% of principal paid out, varying widely. The commission belongs to the guardian as compensation for administering the estate, distinct from reimbursed expenses. The annual accounting shows the calculation: income received × rate, plus principal disbursed × rate, capped by statute.
Hourly rate. Where no statutory schedule fits — or the estate is complex — guardians petition with a time log and a reasonable hourly rate benchmarked to local professional norms. Courts compare the total against the estate’s size and the work’s complexity; a $9,000 fee on a $40,000 estate needs an unusually good explanation.
Three approval patterns exist, and the guardian must know which one applies:
Paying yourself before the applicable approval is a disbursement without authority — the kind that converts a fee dispute into a removal proceeding.
Family members serve as guardians in most cases, and many waive fees entirely. Waiving does not mean going uncompensated: out-of-pocket expenses (mileage, postage, supplies, phone used for fiduciary work) are reimbursable almost everywhere, and some states extend statutory commissions to family guardians. Record expenses as they happen either way — a waived fee with no records still reads as suspicious at a review.
The mechanics are mechanical — log as you go, calculate against the right base, disclose in the right place. fidubond’s Guardian product includes a fee worksheet that ties the commission to the accounting schedules automatically.
Two models dominate. Percentage-of-estate commissions are set by statute in many states, applied to income and sometimes to principal, with different rates for each. Hourly models multiply documented hours by a rate the court finds reasonable. Family guardians often serve without fee, but may still request reimbursement of out-of-pocket expenses.
In almost every jurisdiction, yes. Fees are either fixed by statute and disclosed in the annual accounting, or requested by petition and approved by order before payment. Taking money without approval is treated as a disbursement without authority, which can cost the guardian the fee entirely and worse.
A contemporaneous time log with dates, tasks, and durations; the statutory commission calculation worksheet where applicable; and the accounting that shows the fee as a disbursement. Courts reduce or deny fees that rest on reconstructed, vague, or duplicated time entries.
Sometimes. Many states allow family guardians to receive the same statutory commission as professionals, though some courts scrutinise family requests differently. Out-of-pocket expense reimbursement is nearly always available; commissions depend on the state and the court’s discretion.
This guide is general information, not legal advice. Rules vary by jurisdiction and change over time — confirm the specifics with the court or a qualified professional.