Executors of a will typically get paid somewhere between 1% and 5% of the estate’s total value, though the exact figure depends on what the will directs, which state’s law applies, and how complicated the administration turns out to be. On a modest estate, that can mean a few thousand dollars. On a multimillion-dollar estate, commissions can run into six figures. The money comes out of estate assets before beneficiaries receive anything, so every dollar paid to the executor is a dollar less for the heirs.
The Will Sets the Terms First
The document itself is where compensation starts. A person writing a will can name a flat dollar amount, set a percentage, tie the fee to an hourly rate, or direct the executor to serve without pay. Courts honor those terms. The one exception is when the amount is so low that no reasonable person would take the job; in that case, the executor can petition the probate court for a higher fee.
When the will is silent on compensation, state law fills the gap. Roughly half the states set a specific fee schedule, usually a percentage of estate value. The rest use a “reasonable compensation” standard and leave the number to the probate judge. A handful blend both, starting with a statutory percentage and letting the court adjust up or down. Because the rules vary so much, the same estate can generate very different fees depending on where probate opens.
How Statutory Percentage Schedules Work
States that use statutory schedules almost always apply a sliding scale. The percentage runs higher on the first slice of estate value and drops as the total climbs. A common structure allows 4% to 5% on the first $100,000, 3% to 4% on the next $100,000 to $200,000, and 2% or less on amounts above that. The exact numbers and breakpoints differ, but the pattern holds. On a $500,000 estate under this kind of schedule, the executor’s commission commonly lands somewhere between $10,000 and $18,000.
Definitions matter. Some states calculate the fee on every dollar that moves through the executor’s hands, counting both receipts and disbursements. Others use the appraised inventory value only. Some states count only probate assets; others fold in certain non-probate property the executor actually manages. Two estates of identical face value can produce meaningfully different fees depending on how the base is measured.
What “Reasonable Compensation” States Look At
In states without a fixed schedule, the probate court sets the fee after reviewing what the executor did. Judges weigh a few things:
- Size and complexity of the estate. Rental properties, a business interest, or assets in multiple states demand far more work than a single bank account and a house.
- Time and labor involved. Courts look at hours spent and whether that time was productive, not just logged.
- Skill required. Managing an investment portfolio is different from distributing household goods, and specialized skill weighs in the executor’s favor.
- Results achieved. Selling estate property above its appraised value or resolving a tax dispute favorably strengthens the case for a higher fee.
- Whether deadlines were met. Late inventories, tax returns, or court filings can drag the approved fee down.
An executor who kept poor records or coasted through a simple estate will not receive what a diligent executor on a complicated estate would.
Extra Pay for Extraordinary Work
Even under a fixed percentage schedule, an executor can sometimes ask for additional compensation when the work goes well beyond routine administration. The classic examples are selling real estate, running the decedent’s business to preserve its value, handling a tax audit, and managing litigation the estate is involved in. Courts have discretion to award extra pay for tasks like these because they fall outside what the standard commission is intended to cover.
The executor has to document the extraordinary work separately and show it required real time or specialized skill. A large estate alone is not enough. The additional effort has to be distinct from the ordinary duties every executor handles.
Expenses Are Reimbursed Separately
The fee and expense reimbursement are two different things. On top of the commission, an executor can recover reasonable costs paid out of pocket while running the estate. Court filing fees, postage for required legal notices, travel to manage distant property or attend hearings, and payments to accountants or attorneys hired to assist all qualify.
“Reasonable” is the operative word. First-class flights to inspect a storage unit will draw pushback. Save every receipt and log each expense as it happens. Beneficiaries and the court will scrutinize costs during the final accounting, and undocumented expenses invite challenges.
The Fee Is Taxable Income
Executor compensation is taxable. Federal law defines gross income to include “compensation for services, including fees, commissions,” which covers executor pay.1Office of the Law Revision Counsel. 26 U.S. Code 61 – Gross Income Defined You report the fee on your personal return for the year you receive it, taxed at your ordinary income rate.
That creates a real decision for family members who are both executor and beneficiary. Take the fee and pay income tax, or waive it and receive a larger inheritance. Inherited property generally isn’t subject to income tax, so waiving can leave more money in your pocket after tax. On a $600,000 estate where the fee would be $15,000, an executor in the 24% federal bracket keeps roughly $11,400 after tax. Waiving the fee and receiving that $15,000 as inheritance typically means keeping the full amount. The math doesn’t always favor waiving, particularly if the estate owes estate tax and the fee would be deductible to it, but it’s worth running the numbers before deciding.2Internal Revenue Service. Are the Fees I Receive as an Executor or Administrator of an Estate Taxable
Co-Executors and Splitting the Fee
When a will names more than one executor, the arrangement depends on state law and the will’s language. Some states with statutory schedules allow each co-executor to receive a full commission. Others require them to divide a single commission based on the services each one provided. On a $500,000 estate, that difference can effectively double what the estate pays out.
If the will doesn’t say how co-executors split the fee, the probate court divides it based on who actually did the work. A co-executor who handled the substantive tasks while the other rubber-stamped documents receives the larger share. Naming co-executors is common in families trying to keep the peace, but it can raise the total administration cost.
When the Executor Actually Gets Paid
Executors don’t get paid upfront. The fee comes near the end of probate, after the work is done. The general sequence: gather and inventory assets, pay valid debts and taxes, file a final accounting with the court, and petition for approval of the fee. Only after the court signs off does the executor collect.
Executor fees sit at or near the top of the estate’s payment priority. Funeral costs and court filing fees come first, then administrative expenses including executor pay, then taxes, then secured debts, and finally unsecured creditors. Beneficiaries receive what remains. If the estate can’t cover its debts, the executor still gets paid ahead of unsecured creditors, though never more than the estate can actually afford.
How Beneficiaries Can Challenge the Fee
Beneficiaries are not required to accept whatever the executor claims. Any interested party can file a formal objection with the probate court, usually within a few weeks of receiving the accounting and before the scheduled hearing.
Grounds that hold up tend to involve concrete problems. Unnecessary delays, poor communication with beneficiaries, late inventories, and distributions that didn’t follow the will all give beneficiaries footing to argue for a reduction. Self-dealing is the most serious allegation. If an executor used estate assets for personal benefit or sold estate property to a family member below market, courts can deny the commission entirely and surcharge the executor for the estate’s losses.
The process cuts both ways. An executor defending the fee can present receipts, time logs, testimony from professionals who assisted, and evidence of favorable outcomes. Executors who track hours and keep clean records from day one rarely lose these fights.