Executor fees by state: how executors get paid

If you've been named executor, or you're about to name one, a fair question comes up quickly: does the executor get paid, and how much? The answer depends on the state where the estate is settled.

This page explains the two ways states handle executor pay, then compares six states side by side. For the executor's job as a whole, start with our guide to the executor of an estate. Many states call the executor a "personal representative," and we use both terms here.

Do executors get paid?

Yes. Executors are entitled to be paid from the estate for their work. That's true whether the executor is a daughter, a friend or a professional.

The pay comes out of the estate before the heirs receive their shares. So a fee for the executor is, in effect, money that would otherwise go to the people named in the will. That's one reason many family executors who are also heirs choose to waive it.

The two ways states set executor fees

States take two main approaches (Uniform Probate Code section 3-719).

1. Reasonable compensation. The statute sets no number. The executor takes what is reasonable for the work, and a court decides if anyone objects. This is the Uniform Probate Code model.
2. A percentage schedule. The statute sets the fee as a sliding percentage of the estate. The percentage usually gets smaller as the estate gets larger.

In either system, two things hold almost everywhere. A will can set the executor's pay, and an executor may decline the fee. You may see a single "standard" percentage quoted online for every state. There isn't one.

How six states compare

Here is how six states with large retiree populations handle it. Each row cites the statute.

The details matter as much as the headline numbers. A few that families often miss:

California: the lawyer gets the same again

In California the estate's lawyer is paid on the same statutory schedule, separately from the executor (Cal. Prob. Code 10810). On a $1 million estate, each gets $23,000. The schedule is based on the estate's value as accounted for, ignoring mortgages and debts, so a house with a large mortgage still counts at full value.

Florida: extra pay for extra work

Florida's schedule covers ordinary work and is presumed reasonable (Fla. Stat. 733.617). Extra reasonable pay is allowed for extraordinary services, such as selling property, litigation or running a business. If the estate is $100,000 or more, two co-executors each receive a full commission.

Texas: 5 percent of less than you'd think

Texas's 5% applies only to cash received or paid out. No commission is allowed on cash in bank or brokerage accounts at death, life insurance collected, or money paid to heirs as heirs (Tex. Estates Code 352.002). So the fee is often much smaller than "5% of the estate." A court can allow reasonable pay instead if the executor runs a farm, ranch or business.

New York: more than one executor

In New York, for estates of $300,000 or more, each executor generally receives a full commission. If there are more than three, the commissions for three are shared among them by the work each did (N.Y. SCPA 2307).

Arizona and Pennsylvania: what's reasonable

In Arizona, if the will sets the pay, the executor may renounce it before qualifying and take reasonable pay instead (A.R.S. 14-3719). Arizona also requires fiduciaries to manage costs prudently (A.R.S. 14-1104). Pennsylvania's court sets what is "reasonable and just" for the circumstances.

For the rest of each state's probate rules, see the state guides for Florida, California, Texas, Arizona, New York and Pennsylvania, or the estate planning by state overview.

How is "reasonable" decided?

In a reasonable-compensation state, the question is the work involved: its size, its difficulty and the time it took. A short, simple estate earns less than one with a house to sell and a business to wind down.

Under the Uniform Probate Code model, a court decides only if someone objects. That's why a careful record of the work matters more than any formula.

Practical advice for a family executor

An executor is a fiduciary, meaning legally required to act in the estate's interest and follow what the will says. A little care up front avoids hard feelings later. Our executor checklist lays out the work itself.

• Read the will first. If it sets an amount or says you serve without pay, that usually settles it.
• Keep a log. Note the date, the task and the time, from the first week. A log makes "reasonable" easy to show.
• Tell the family early. Siblings take a fee better when it isn't a surprise in the closing papers.
• Remember the tax. The IRS says executors must include estate fees in their gross income (IRS Publication 559).
• Keep receipts separately. Your fee is one thing; money you spent for the estate is another.

Here is a typical case, a composite: Margaret's brother died in Arizona and named her executor. She was also his main heir, so she skipped the fee. She knew any pay would count as taxable income, and the money would come to her anyway.

What about professional executors?

Professionals, such as trust companies, usually publish their own fee schedules, and the will can agree to them. Our post on trust company fees compares three, and the guide to choosing professional help weighs a professional against family. The wider picture of estate costs is in probate fees and how much an executor gets paid.

Kinly members can name Trella Trust Company, a Washington State chartered trust company, as executor, first or as backup to a person they choose. If it settles the estate, that work is charged by the hour, with rates shown before anything starts.

Common questions

What is the standard executor fee?

There isn't a national one. Some states set a percentage schedule, like California, New York and Florida. Others, like Arizona and Pennsylvania, allow reasonable compensation decided case by case. A will can set the fee in any state.

Which states set executor fees by percentage?

Among the six states compared here, California, New York and Florida set a sliding percentage schedule, and Texas sets a 5% commission on cash received and paid out. Arizona and Pennsylvania use reasonable compensation instead. Check your own state's statute or the state guides.

Can an executor refuse to be paid?

Yes. Many family executors waive the fee, especially when they are also heirs, partly because the IRS treats the fee as taxable income. If you plan to waive it, say so in writing early.

Can the will set the executor's fee?

Yes. A will can set the executor's pay or say the executor serves without pay. In Arizona, an executor who doesn't want the will's amount can renounce it before qualifying and take reasonable pay instead.

Sources

• Uniform Probate Code, section 3-719 (Uniform Law Commission)
• Fla. Stat. 733.617: Compensation of personal representative (Florida Legislature)
• Cal. Prob. Code 10800 and 10810 (California Legislative Information)
• Tex. Estates Code chapter 352 (Texas Legislature)
• A.R.S. 14-3719: Compensation of personal representative (Arizona Legislature)
• A.R.S. 14-1104 (Arizona Legislature)
• N.Y. SCPA 2307: Commissions of fiduciaries (New York State Senate)
• 20 Pa.C.S. chapter 35, section 3537 (Pennsylvania General Assembly)
• Publication 559: Survivors, executors, and administrators (IRS)