Executor of estate fees: Does an executor receive payment??Being an executor of an estate requires a strong commitment to working on behalf of the estate and its beneficiaries. Depending on the overall size and value of the estate, an executor can serve for months or even years! It?s a tremendous responsibility that involves not only physical property and belongings but finances and investments as well.
Now that we?ve established that being an executor requires a lot of time and effort, you may be asking if an executor can be paid for his or her service. The simple answer is yes. Now, let?s take a closer look.
Executor of estate fees
- An executor?s pay is typically spelled out in the will or governed by law, which varies from state to state.
- If compensation is not mentioned in the will, state law gives executors the right to reasonable compensation. States will typically provide a formula for arriving at the executor?s fee. In most states, the fee is calculated by multiplying the gross value of the estate by a set percentage.
- Some executors simply feel uncomfortable accepting payment for their service, and there?s nothing wrong with serving without pay.
- When there?s more than one individual serving as executor, both are entitled to payment for their service. Once again, state law will dictate the fees to be paid to each executor if a fee is not mentioned in the will.
- If the executor has paid for anything out of his or her own pocket, he or she is entitled to be reimbursed for expenses. Out-of-pocket expenses are typically reimbursed during the course of service.
- There are separate rules governing payment if the executor is classified as an institution or is also serving as the attorney for the estate.
?If you have any questions regarding executor of estate fees, please consult with an experienced estate attorney or contact The Olear Team today!