What Does the Executor of a Will Get Paid?

Determining executor fees by state

Each state has its own laws concerning executor fees. Washington state, for example, provides that executors are entitled to “reasonable" compensation. In this determination, a court may consider factors such as the complexity of the estate and issues involved, and the time the executor spent carrying out the duties, among others. Each state has its own guidelines for determining what is “reasonable."

California has one of the most detailed schemes, which provides that the executor fee is four percent of the first $100,000 of the estate, three percent of the next $100,000, two percent of the next $800,000, one percent on the next $9 million, one-half of one percent on the next $15 million, and a “reasonable amount" for estates above $25 million.

In states that mandate a specific percentage of the estate, there is also the possibility that the executor may collect an “extraordinary" fee if the duties of administering the estate have gone above and beyond the usual—situations such as being involved in litigation or tax disputes on behalf of the estate.

Texas law falls somewhere in between these two positions by providing a flat percentage unless the calculated amount is unreasonably low or the executor manages a business for the estate, in which case the probate court may adjust the fees. Under normal circumstances, executor fees in Texas are set at five percent of the amount paid out of the estate but may not exceed more than five percent of the total fair market value of the estate.

An executor is also usually entitled to be reimbursed for any out-of-pocket expenses incurred, for example, those that arise before the estate is opened for probate, such as the payment of utility or medical bills.