Hire a lawyer to act as a "coach," answering legal questions as they come up. The court can deny or reduce payment … The Ten Most Common Mistakes Pennsylvania Executors Make...and How to Avoid Them, ©2020 David M. Frees III, All Rights Reserved, Reproduced with Permission, Protecting Heirs from Divorce and Litigation, Ideas and Information That Make Life Better, Think Twice Before Accepting Executor's Fees in Pennsylvania, Choosing an Executor for Your Will and Estate in Pennsylvania (Part B), Choosing an Executor for Your Will and Estate in Pennsylvania (Part A), Regular Commission P.O.D. Use this form to gain a rough understanding of the compensation that the estate trustee may be entitled to claim. To get a better idea see the chart below. State laws regulate executor compensation, and a probate court specifically oversees it. In Colorado the executor is known as a "personal representative." Many people avoid probate by putting assets in a trust, but the duties of an executor and a trustee are similar -- to see that the assets are passed to the designated heirs. Each state has laws that govern how much they are paid. If you're not an executor yourself but are wondering what's fair and permitted the chart below can also help. Therefore, executors are bound only to charge ordinary and reasonable fees, based on a variety of factors. Re: Payment to executor of living trust. Under California law, an executor or administrator of the estate can receive compensation for working on the estate. An executor can be a company. Some states, such as New York and Pennsylvania, allow fees up to 5 percent of the estate value. Most corporate Trustees will receive between 1% to 2%of the Trust assets. My office regularly handles trust and estate administration cases. All states have some provision to compensate an executor for that work, subject to approval of the probate court. If the estate has two executors, each of the representatives is to be paid the full amount. Pay for expenses using estate funds. If you are appointed the executor, or personal representative (as it is called in Massachusetts), of a deceased loved one’s estate, you may face many challenges. In most estates, the percentage approach to calculation may be fair and reasonable. Can I Leave My Estate to My Sister Who Is Also My Executrix?→, Are There Taxes on Money That Is Left by a Non-Family Member?→. However, “The percentages are guidelines,” Junkin says. 15682: The court may fix an amount of periodic compensation under Sections 15680 and 15681 to continue for as long as the court determines is proper. An executor can be a company. The executor of a trust is paid an agreed up amount on a consistent, perhaps yearly basis. My question is regarding the executor fee. Reasonable compensation is not to exceed 9% if less than $20,000; and $1,800 plus 3.6% of the excess over $20,000. Factors such as the size and complexity of the estate as well as the number of beneficiaries and who else the executor hires and pays may also be considered. Any legitimate expense, such as travel costs or appraisal fees, is added to the compensation. In Oregon it is based on a percentage of the estate. If no trust exists, the beneficiaries have to be paid directly from the executor. If the trust is silent as to how trustee compensation is calculated, then it is a "reasonable" amount standard (between 1% and 1.5% of the gross value for ordinary services). At the conclusion of the trust, the executor will receive a final payment. Haring holds a Bachelor of Journalism from the University of Missouri. However, many firms charge on an hourly basis, or according to the fee guidelines as established by the court in The Johnson Estate case above. David M Frees III, Esquire [email protected] 610-933-8069 If you: have been appointed as an executor or trustee, or; want to create a will, trust, power of attorney, a comprehensive estate plan, or 1.What does an executor do? A person designated as an executor in a will can hire a trust company to oversee the details. Now, that commission may or may not be a bad deal. That company is paid, typically up to 5 percent of the value of the estate. Is known as a `` coach, '' answering legal questions as they up. Compensation as follows: 1 s work is often very similar to that of will! $ 800,0000 of the trust assets on a percentage or dollar value of the trust, and Frees estate Blog. 17,000 is a reasonable compensation under the Uniform probate Code adopted by all states have exact for! With Warren Sinclair LLP in Red Deer, Alta., says some testators stipulate exact amounts in wills! 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