Does the Executor of a Will Get Paid? Your Complete Guide to Executor Compensation

Being responsible for someone else’s property after they die isn’t easy, let’s face it. One of the most important things to know if you’re an executor in someone else’s will or looking for information about the person who is taking care of your loved one’s estate is whether or not the executor gets paid.

The quick answer is yes, executors typically do get paid for their work. But the details get a bit more complicated, and that’s where I’m gonna help clear things up for you.

What Does an Executor Actually Do?

Let’s talk about what an executor does before we get to the money stuff. Trust me, it’s not just signing a few papers!.

An executor’s duties typically include:

• Opening probate with the court
• Tracking down all the deceased person’s assets
• Notifying heirs, beneficiaries, and creditors
• Managing the estate during administration (paying mortgages, closing accounts, etc.)
• Identifying and paying all the deceased’s debts
• Distributing assets to beneficiaries
• Closing the estate with the court

For many people, being an executor feels like having a second job – and that’s exactly why compensation exists!

How Much Does an Executor Get Paid?

The amount an executor receives varies based on several factors:

1. What the Will Says

If the will says exactly how much the executor should be paid, those instructions usually take precedence over state laws. The will might:

• Specify a flat fee
• Set an hourly rate
• Outline a percentage-based compensation
• Request that the executor serve without payment

2. State Law

If the will doesn’t address compensation (or there’s no valid will), state law takes over. Each state has its own approach:

Percentage-Based States
Some states use a sliding percentage scale based on the estate’s value. For example:

• 4% on the first $100,000
• 3% on the next $100,000
• 2% on the next $800,000
• And so on…

California has one of the most detailed schemes following this model.

“Reasonable Compensation” States
States like Washington allow for “reasonable” compensation determined by the court. Judges consider:

• Time spent on estate administration
• Complexity of the estate
• Skill required
• Results achieved

Other Approaches
Some states use:

• Flat fees
• Hourly rates
• Percentages of transactions (not just overall estate value)

Texas, for instance, sets executor fees at 5% of amounts paid out of the estate, with a cap at 5% of the total fair market value.

3. Extraordinary Circumstances

When an executor goes above and beyond normal duties, they may receive additional “extraordinary” compensation. This might happen when:

• The executor manages a business for the estate
• The estate gets involved in litigation
• Complex tax issues need resolution
• The estate administration is unusually complicated

When Does the Executor Get Paid?

Here’s something important to know: executors don’t get paid upfront! Payment timing typically works like this:

1. The executor completes their duties
2. The estate pays all debts, liabilities, and taxes
3. The executor submits a final accounting to the court and beneficiaries
4. The court approves the proposed executor fee
5. The executor receives payment from remaining estate funds

In some states, executors can request partial payments during administration, but beneficiaries can ask for these fees to be held until the end to ensure all debts can be paid.

Can Executors Get Reimbursed for Expenses?

Yes, even if an executor doesn’t charge a fee, they can still get their out-of-pocket costs reimbursed. These costs could include:

• Funeral costs paid before the estate was opened
• Travel expenses and mileage
• Postage and office supplies
• Mortgage payments or utilities advanced on behalf of the estate
• Attorney fees or other professional services

Pro tip: Keep DETAILED records of all your expenses if you’re serving as an executor!

Executor Fees and Taxes – What You Need to Know

Here’s where things get interesting (and why some executors choose to decline payment). Executor fees are considered taxable income. If the executor is also a beneficiary of the will, they might choose to waive their fee because:

• Executor fees = taxable income
• Inheritance = generally not taxable

By declining the fee, the executor who’s also a beneficiary keeps those funds in the estate to be distributed as part of their inheritance, potentially maximizing what they receive after taxes.

To formally decline compensation, the executor must file a written renunciation with the probate court.

Special Scenarios Worth Mentioning

Multiple Executors

When there’s more than one executor, compensation gets tricky:

• Some states have them split one executor fee
• Other states allow each executor to receive full compensation

Institutional Executors

Banks or trust companies serving as executors typically have established fee schedules that apply when the will doesn’t specify compensation.

Attorney-Executors

When an attorney serves as both the executor and the estate’s legal representative, special rules may apply regarding dual compensation.

Should You Accept or Decline Executor Compensation?

If you’re an executor trying to decide whether to accept payment, consider:

1. The complexity of the estate – Is this a simple estate or a complicated one requiring significant time?
2. Your relationship to the deceased – Family members sometimes feel uncomfortable taking payment
3. Tax implications – Remember the taxable vs. non-taxable distinction
4. Time commitment – Being an executor can take months or even years

Final Thoughts

Being an executor is a big responsibility, and it’s completely reasonable to be compensated for your time and effort. The key things to remember:

• Executor fees come from the estate, not the beneficiaries directly
• Compensation is determined by the will or state law
• Fees are usually paid at the end of probate
• Expenses can be reimbursed regardless of whether you take a fee

If you’re creating your will, consider addressing executor compensation clearly to avoid confusion later. And if you’re serving as an executor now, don’t feel guilty about accepting the compensation you’re entitled to – you’re performing a valuable service!

Have you served as an executor or had experience with estate administration? I’d love to hear about your experience in the comments below!

---

Disclaimer: This article provides general information but isn’t legal advice. Every situation is unique, so please consult with a qualified attorney for guidance specific to your circumstances.