Executor / Personal Representative Compensation and Reimbursement
An estate’s executor — the person responsible for administering the estate, also sometimes called the personal representative — is entitled to receive monetary compensation and reimbursement for any out-of-pocket expenses. There are some limitations to this, however, and the executor should not merely bill the estate for services; the probate court must approve any compensation or reimbursement requests.
The amount of compensation may be defined within the will. Testators are free to write specific compensation guidelines for whoever acts as personal representative. The fee paid is usually a percentage of the estate, but may also be a flat monetary sum or even a gift of property. Depending on the rules of your estate, the executor may also be entitled to reimbursement of out-of-pocket expenses on top of what is specifically given in the will.
Testators could also specifically require that the executor receive no compensation, though this may not be permitted in every state. A nominated personal representative may opt not to administer the estate if the will specifies no compensation. Banks and business entities who provide executor services will also likely deny appointment as personal representative if the will withholds compensation.
If the will says nothing about compensation, the probate court will still provide compensation and reimbursement for executors. Each state is different: some use a flat percentage of the estate — usually 2-5 percent — as compensation, while others provide “reasonable” compensation. What is reasonable is up to the court, but it tends to be around 4%. This is in addition to any court-approved out-of-pocket expenses.
Executors may also be heirs, and the services they provide do not affect their gifts nor does the value of the gifts offset compensation.
Administering an estate is difficult and time consuming; personal representatives are required to work with the probate court to locate property, valuate the estate, distribute property, repay debts, and settle the decedent’s financial affairs. Though few executors perform their services for the money, monetary compensation is a way to recognize the individual for hard and honest work.
Related Posts
|
|
What to Do when Someone Dies
When a friend or family member dies, there are many things you must do to address the deceased's legal requirements.
|
|
|
Do I Have the Right to See the Will?
If the will is in probate, everyone has the right to view the will at the probate court. If someone is hiding a will, you may have the right to force it out.
|
|
|
How to Disinherit a Spouse
Disinheriting a spouse is difficult and depends on your state laws. Learn if and how you can do it.
|
|
|
What is a Revocable Living Trust?
A revocable living trust may be a good alternative to a will depending on your financial and familial circumstances.
|
Incoming search terms:
executor expenses reimbursement (97), executor reimbursement (66), Typical Executor Compensation (47), executor fees (22), executor compensation (22), estate mileage reimbursement (19), estate executor reimbursement (17), executor expenses (17), executor fees in tennessee (16), executor mileage reimbursement (15), typical executor fees (15), executor expense reimbursement (15), Executor Fee (14), executor reimbursement expenses (14), executor fees in florida (14), tennessee executor fees (14), executor of estate reimbursement (13), estate executor compensation (12), executor of estate fees florida (10), executor of estate fees in tennessee (9), executor fees florida (9), average executor fee (7), florida executor fees (7), yhs-ifm1 (7), florida executor fee (7), estate executor expenses (7), executor expenses allowable (6), executors expenses (6), reimbursement of executor expenses (5), executors expenses mileage (5), what are typical executor fees (4), expenses for executors (4), executor of estate fees tennessee (4), personal representative compensation (4), executor of estate expenses (4), alowable reimburstment from estate (4), reimbursement for executor of estate (3), typical fee for executor of estate (3), is the personal representative to an estate entitled to compensation (3), personal representative reimbursement (3), mileage reimbursement for executor (3), executor fees and expenses (3), Texas Executor allowable fee (3), executor expenses mileage (3), typical executor fee (3), www testatewill com/probate/executor-personal (3), reimbursement for estates (3), normal executor fees (3), reimbursement of estate expenses (3), exucutor of will acceptable expenses (2), executor of estate tennessee (2), estate administrators right to reimbursements in ma (2), Nj reimbursable executor expenses (2), estate executors expenses PEnnsylvania (2), reimbursable items & california probate (2), estate executor fees tennessee (2), personal representative compensation pennsylvania (2), estate executors expenses (2), what are resonable expenses for an exector or a probat will (2), personal representative mileage rate (2)
