How Much Does an Executor Get Paid?
Following the loss of a loved one, you may be wondering how much does an executor get paid?
An executor is paid a commission for all sums of money and all property that he or she receives and pays out, including the estate assets (less any specific bequests or items of real or personal property left by the testator to a specific individual), and income plus all the reasonable and necessary expenses paid by him or her in order to probate the will based on this statutory rate schedule:
- 5% for receiving and paying out up to $100,000.
- 4% for receiving and paying out the next $200,000.
- 3% for receiving and paying out the next $700,000.
- 2 ½% for receiving and paying out the next $4,000,000.
- 2% for receiving and paying out sums above $5,000,000.
However, the will may specify different provisions for paying the executor based on a previously agreed rate or fixed amount. It may be more advantageous for an executor who is also a beneficiary under the will to receive a disposition rather than an executor’s fee. A disposition is not taxable, whereas executor fees are taxable as income. If the value of the probate estate is more than $300,000, each executor up to a total of two is entitled to be paid a full commission. If more than two executors are named, they must split two full commissions unless the decedent has specifically provided otherwise in the will. Even though a testator can specify in the will that the executor must waive a commission in order to be eligible to serve, this is recommended only if the executor is a beneficiary or a very close personal friend, since being an executor is very time consuming. Banks and trust companies may charge more for their services as executors and trustees and particularly as money managers.
If you would like to know more, please call our Rochester estate planning lawyers today for knowledgeable legal guidance.