What does an Executor get paid?

[PennsWoods]

Hello again Attorney Rominger,

I have a friend that is serving as executor for his mother's estate. There is still an outstanding cash asset balance to be distributed. He has been working under the assumption that, as executor, he bears the burden of the work performed is done at his own expense. While we're not talking millions, there was a sizeable family home and contents, a small business with stock and inventory, moving and storage, personal time spent (and lost income otherwise), and numerous trips to the courthouse. There are two heirs (the children) of which my friend/executor is one.

By comparison, about four years ago I was named as an heir in my own family's estate, and my cousin served as executor. In the division of property as set forth in the will, my cousin was paid for their work as executor in addition to (actually, prior to) their share of the estate. I accepted this as SOP, and have no qualms about the work they did and the amount they were paid... it was just one of the expenses.

In short, is there a standard as to the payment for services of an executor? Is it based on a percentage, an hourly rate, on a mutually agreed upon flat fee, or is it done gratis? I know every case is different (Donald Trump's executor shall surely be paid well, while a no-asset estate involves a few days of effort), but what is considered to be reasonable and customary?

As always, great thanks in advance! -- Chris - aka PennsWoods

[karl_rominger]

While it varies, most executors take a small percentage of the gross estate for their efforts. Professional estate administrators, such as banks often charge by the hours actually worked.

So no, this person should be reimbursed for all their costs, as well as paid for their time...

And if you have a good lawyer working on the estate, in most instances they will do most of the heavy work for the executor....