Massachusetts Trust — Trustee Paying Himself 8% Property Management Fee

I’m a beneficiary of an irrevocable Massachusetts family trust that owns an interest in a multi-unit rental property.

One of the trustees (“Trustee A”) is also a donor and beneficiary of the trust and personally owns 50% of the property. His wife is also a donor, trustee, and beneficiary.

The original trust gives the trustees broad authority and responsibility to manage the real property, including leasing, repairs, insurance, expenses, and general administration. It does not specifically provide for an 8% property-management fee. It also states that a demand by a trustee for unreasonable compensation for the trustee’s services can constitute cause for removal.

In 2025, the three trustees—including Trustee A—signed a resolution appointing Trustee A as the paid property manager. The resolution gives him 8% of 100% of the property’s gross monthly rental income, paid before distributions to beneficiaries. His listed property-management duties include tenant/lease management, collecting rent, distributing rental income, coordinating repairs and maintenance, and financial recordkeeping.

My questions are:

1. Can trustees create a separately compensated property-manager position for one of themselves when many of those duties appear to already fall within the trustee’s responsibilities under the original trust?
   
2. Does Trustee A’s 50% personal ownership of the property, along with being a trustee/donor/beneficiary, create a self-dealing or fiduciary conflict issue?
   
3. Does approval by the other trustees make the 8% compensation valid, or does the fee still have to be independently reasonable and fair to the beneficiaries?
   
4. Is it significant that 8% is being charged against 100% of gross rental income, rather than only the trust’s ownership interest?
   
5. What records/accounting would a beneficiary normally be entitled to request to evaluate whether this compensation is reasonable?
   
6. If the fee is determined to be excessive or improper, what remedies are generally available to beneficiaries under Massachusetts trust law?

I’m not looking to accuse anyone of wrongdoing. I’m trying to understand whether this arrangement is permissible and what documentation I should request before deciding whether to consult a Massachusetts trust/probate attorney.

Location: Massachusetts