Under California Probate Code, the executor typically receives 4% on the first $100,000, 3% on the next $100,000 and 2% on the next $800,000, says William Sweeney, a California-based probate attorney. For an estate worth $600,000 the fee works out at approximately $15,000.
Can executors claim expenses?
An executor may claim from the estate reasonable costs incurred during the administration. These are costs that they have paid out of their own pocket. The executor must be able to show that these expenses have benefited the estate and its beneficiaries. There is no set list of what is or isn’t an executor’s expense.
Can a beneficiary claim compensation from an executor?
After being appointed as estate trustee or executor of an estate, it can be unclear how much compensation can be claimed for administering the estate. In addition, beneficiaries often object to the amount claimed. How is executor compensation determined?
How does an executor of an estate get paid?
As an executor, by law you can receive payment for your time and services. This is so even if the will does not mention your payment. Your compensation is not based only on a percentage or dollar value of the estate. In most estates, the percentage approach to calculation may be fair and reasonable.
Can a will be incorporated into an executor’s will?
It is possible for the testator (person making the will) and executor to agree on the level of compensation (or no compensation) at the time the will is made. This can be done via a clause in the will, or by a separate compensation agreement that is “incorporated by reference” into the will.
Can a co-executor be reimbursed by the court?
Courts also have authority to review any expenses claimed by the executor. Only those expenses deemed to be reasonable will be approved for reimbursement. The perceived attractiveness of compensation for would-be executors is subject to a few additional realities. 1. The court will not become involved in dividing the fee among co-executors.
