Under Georgia law, an executor can serve with or without compensation, as indicated in the will. If the will says nothing about the executor's compensation, then the executor will be compensated in accordance with the default rules of Georgia's probate law. Most executors are entitled to pay for their work, either under the terms of the will or under state law. How much is an executor paid? Usually, a will names a flat rate or states that the executor can claim reasonable compensation.
If a will does not mention compensation, state law generally gives executors the right to reasonable relief, and can provide a formula for arriving at executor's fees. The executor's fees can vary significantly and depend on both state law and probate court decisions. Many states agree that the executor of a will is entitled to reasonable compensation for his or her services. However, even the definition of reasonable compensation differs from state to state.
The amount paid to an executor does not depend on their relationship with the deceased. The amount of work is the same, regardless of whether your executor is a family member, friend, or professional. Most state laws designate fees for the executor based on the size of the estate. The executor has the right to be compensated for his work in relation to the inheritance.
Even with simple successions, the executor has a fair amount of work to do to close the estate and usually justifies a fee. To determine executor compensation, you should consult your state's regulations. Sometimes, the beneficiaries of the estate and the personal representative agree on how much and when the personal representative will be paid, regardless of what the will says or what state law provides. Connecticut does not have a statute governing executor's compensation, but case law seems to suggest that Connecticut's executor's fees conform to the reasonable compensation item.
The money paid to the executor for his duties is considered income, and executors are required to disclose their earnings when filing an income tax return. As noted, the executor's purpose is to manage the distribution of assets and the payment of estate obligations and to fulfill his last wishes. There is a situation where it rarely makes sense to collect a fee, and that is when you yourself inherit most or all of the estate. Assuming that all of those tasks go smoothly, the person acting as executor must still take a significant amount of time out of their life to ensure that the tasks are accomplished.
While the above provides an overview of executor's fees, you may find it beneficial to consult with an estate planning attorney who knows the laws of your state as you navigate the probate system. Keep track of the time you spend liquidating the estate and then charge the estate a reasonable hourly rate. They can also get their own percentage of the estate that they consider reasonable compensation. Under normal circumstances, executor's fees in Texas are set at five percent of the amount paid of the estate, but cannot exceed more than five percent of the total fair market value of the estate.
In a basic estate situation, it could take several months for the executor to complete administration of the will. Even if your state's law doesn't have a table of statutory rates, you may be able to charge a percentage of the value of the estate. They are usually calculated by multiplying the gross value of the estate by a specific percentage. .