The maximum executor fees by state fall into two systems: roughly half the states cap compensation through a statutory percentage schedule written into the probate code, and the rest allow whatever the probate court considers “reasonable.” In practice, executor fees across the country land somewhere between 2% and 5% of the probate estate, with the actual ceiling depending on the state, the size of the estate, and the complexity of the work. The estate pays the fee, and the probate court has the final say on whether the amount is justified.
States With Statutory Percentage Schedules
About half the states cap executor compensation through a tiered percentage system. These schedules start with a higher percentage on the first portion of the estate’s value and step down as the total climbs. A state might allow 5% on the first $100,000 and gradually reduce to 2% on amounts above $1 million. First-tier percentages across statutory states range from roughly 2% up to 9% on smaller estates, and top-tier rates on amounts above $1 million drop to somewhere between 1% and 2.5%.
The effective rate shrinks as estate size grows. More important: these percentages are ceilings, not entitlements. A court can approve less if the work didn’t justify the full statutory amount. The statutory number sets the top of the range, not the floor.
States That Use “Reasonable Compensation”
The remaining states follow the Uniform Probate Code’s approach, which entitles a personal representative to “reasonable compensation” without naming a percentage. Courts in these states weigh several factors:
- Size and complexity of the estate. More assets, more types of assets, and more creditors all push fees higher.
- Time the executor actually spent. Detailed time records carry real weight; courts discount vague estimates.
- Skill required. An estate with rental properties, business interests, or pending litigation demands more expertise than a simple bank-and-house estate.
- Results achieved. An executor who sells real estate above the appraised value or resolves a tax dispute favorably may justify a higher fee.
- Local custom. Courts look at what executors in similar estates in the same jurisdiction have historically been paid.
Even in statutory-schedule states, courts keep discretion to go below the ceiling when the work didn’t warrant the full amount.
Which Assets the Fee Is Calculated On
The percentage applies to the probate estate, not the deceased person’s entire net worth. Only assets that pass through the court-supervised probate process count. Property that transfers automatically at death is generally excluded, including jointly held real estate, payable-on-death bank accounts, life insurance paid to named beneficiaries, and retirement accounts with designated beneficiaries.
That distinction can dramatically change the fee. Someone with a $2 million net worth might have a probate estate of only $400,000 if most of their wealth sits in retirement accounts and jointly held property. The executor’s compensation would be calculated on that $400,000. Before estimating what you can charge, identify which assets actually fall inside the probate estate.
Extra Compensation for Extraordinary Services
Statutory fees and reasonable-compensation awards cover ordinary administration: collecting assets, paying bills, filing tax returns, and distributing property. When the work goes beyond that baseline, most states let the court approve additional compensation. The award is entirely at the court’s discretion.
Tasks that commonly qualify include:
- Estate litigation, such as defending a contested will or suing to recover estate assets.
- Federal estate tax matters. Estates large enough to trigger estate taxes involve substantially more work.
- Real estate sales, including marketing, negotiating, and closing property sales for the estate.
- Locating hidden or unknown assets, including accounts, property, or beneficiaries not readily apparent from the decedent’s records.
- Operating a business during administration until it can be sold or transferred.
Courts expect executors seeking extraordinary compensation to document exactly what they did, how long it took, and why it fell outside normal duties. Vague requests get denied.
Co-Executors Share One Fee
Naming two or three co-executors doesn’t double or triple the compensation. In most states, co-executors share a single statutory commission rather than each collecting the full amount. The default split is usually equal, but co-executors can agree among themselves to divide the fee based on how much work each one actually did. If they can’t agree, the probate court resolves it.
Court Approval and Challenges From Beneficiaries
Executor fees don’t become final until the probate court signs off. The executor typically requests approval as part of the estate’s final accounting, which lays out every asset, debt, expense, and distribution. Beneficiaries get notice of the proposed fees and can object.
Objections aren’t rare, and they aren’t automatically successful. A beneficiary challenging the fee needs to point to something specific: the amount exceeds the statutory maximum, the executor didn’t actually do the work claimed, or the time records don’t support the hours billed. Courts don’t reduce fees just because a beneficiary wishes the estate were larger.
Meticulous record-keeping from day one is the executor’s best protection. Detailed logs of time spent, tasks performed, and expenses incurred make it far easier for a court to approve the requested compensation. Executors with vague records often settle for less than they deserve because they can’t prove what they did.
What Happens If an Executor Takes Too Much
An executor who pays themselves above the allowed amount, or takes any fee without court approval, faces real consequences. Courts can order the executor to return the excess through a surcharge. In serious cases involving self-dealing or mismanagement, the court can remove the executor and appoint a replacement. Taking excessive fees is also a breach of fiduciary duty, which can expose the executor to personal liability for losses the estate suffers.
The risk is highest when an executor sets their own compensation without waiting for approval. Even if the amount would have been approved, paying yourself without authorization signals a problem to the court. Wait for the formal approval process.
When Waiving the Fee Makes More Sense
Executor compensation is taxable income. Every dollar of it. Nonprofessional executors (someone handling a single estate for a friend or relative) report fees on Schedule 1 (Form 1040), line 8z as other income, and the fees are generally not subject to self-employment tax unless the estate contains a trade or business the executor actively runs.1Internal Revenue Service. Publication 559 (2025), Survivors, Executors, and Administrators Professional fiduciaries report on Schedule C and owe self-employment tax on top of regular income tax.2Office of the Law Revision Counsel. 26 USC 1401 – Rate of Tax
Family members who are also beneficiaries often skip the fee for this reason. Inherited assets generally pass free of income tax and receive a stepped-up basis, while an executor fee is ordinary income. Accepting a $15,000 fee and paying tax on it can leave you with less than letting that $15,000 flow through as part of your inheritance.
Under the Uniform Probate Code, an executor can file a written renunciation of their compensation with the court. Timing matters. The IRS has held that if an executor waives the fee within a reasonable period and never collects it, the waived amount isn’t treated as taxable income to the executor or as a gift to the beneficiaries. Collect first and hand the money over later and you’ve both earned taxable income and made a potentially taxable gift. Waive before collecting.
On the estate’s side, executor commissions paid during administration are deductible as administration expenses on the estate tax return, but only to the extent the fees match usually accepted standards for estates of similar size in that jurisdiction.3eCFR. 26 CFR 20.2053-3 – Deduction for Expenses of Administering Estate A bequest left to the executor in lieu of commissions does not qualify for the deduction.