How Much Are Executors of Wills Paid?
When someone is appointed executor of a will, they must take on the responsibilities and duties of administering the estate. This can involve a significant amount of time and effort, especially for larger estates. As a result, people often wonder whether they are entitled to compensation for acting as executor of a will and if so, how much.
There are a few do executors of wills get paid ways that an executor can be paid. In some cases, the Will specifically lays out the compensation arrangement by setting out either a percentage of the total estate or an hourly rate. In other cases, the Will may leave this up to state law or probate court to determine how much compensation an executor should receive.
Do Executors of Wills Get Paid? Understanding Executor’s Compensation and Fees
The rules for how much an executor can be paid are complex and can vary from state to state. For example, California specifies a compensation structure that includes four percent of the first $100,000, three percent of the next $800,000, two percent of the next $9 million and one-half of one percent on anything over $15 million.
In some states, the executor is allowed to collect a reasonable fee from the estate by showing that all bills have been paid and that it has passed the time for any new bills to arise. In other cases, the court will authorize an “extraordinary” fee for situations like the sale of property, litigation on behalf of the estate or tax disputes. In either case, it is always best for the executor to keep meticulous records and account for all assets collected, all gains or losses, all income during administration and all expenses paid.