In nearly all cases executors are entitled to compensation for their efforts, but compensation isn’t the same for every executor. Executor fees can change due to many factors.
Let’s explore how much executor fees are, how the fees vary by state, and whether there are any scenarios where an executor might not be compensated for their services.
Typical executor of estate fees
Executor fees can range from hundreds to thousands of dollars. The average fees depend on a large number of factors.
The following factors can influence executor fees:
- The presence of a will
- Local probate laws
- The size & value of the estate
- The number of beneficiaries involved in the estate
- The complexity of the estate assets
- The number of documented hours that the executor puts into settling the estate
Although all the factors play a pivotal role in determining the amount of executor compensation, the first two factors (the presence of a will and state laws) are the most important.
To understand the importance of those two factors, it’s crucial to understand where the authority to determine executor fees comes from.
The authority to determine executor fees boils down to two important factors:
- The deceased’s last will & testament
- State law & domicile location
When wills determine executor fees
The deceased’s will is the first step in determining the executor’s compensation.
In most cases, the deceased’s will stipulates a certain payment to the executor for services performed during the estate settlement process.
There are a number of ways in which the will might stipulate how much the executor should be paid. Some wills might be more direct and state that an executor should receive a flat fee, while other wills might leave the executor’s compensation up to the determination of the probate court.
Regardless of the exact wording in the deceased’s will, the executor payment will likely follow one of the following three structures:
Types of Executor fees & payment structures
- Flat fees
- Percentage of the estate
- An hourly rate
If the will does not stipulate a cost structure that should be followed, or the probate laws with the domicile jurisdiction don't establish best practices, then the probate court will likely determine the exact fee structure used to pay the executor.
When state laws determine executor fees
If the deceased’s will does not include any mention of executor fees, then the probate court will determine how much the executor should be compensated for services offered during the estate settlement process.
To put it in simpler terms: the deceased’s will is the governing document when it comes to executor fees. If the will is silent, however, then the local probate clerk or probate judge will determine the executor’s compensation.
Not all probate courts are the same, of course.
Probate law is determined by an estate's domicile location, which is typically where the deceased’s lived, resided for tax purposes or maintains physical assets.
Executor fees by state
Each state has specific laws that determine executor compensation. Before we dive into the specifics of each state, let’s take a look at some quick facts about executor compensation in the U.S. as a whole:
Summary of executor fees by state:
- 70% of the United States follows a “reasonable compensation” method to determining executor fees
- 22% of the United States follows a "tiered percentage formula" for determining executor fees
- 8% of the United States follows a "flat percentage" structure when determining allowable executor fees
Understanding "reasonable compensation" as executor fees
35 states follow “reasonable compensation” laws to determine executor fees.
Reasonable compensation sounds a bit vague, and that is because, well, it really does vary from state to state.
Probate courts use the premise of reasonable compensation to determine how much an executor should reasonably be paid for the services that the executor offered to the estate.
The probate courts will look at a variety of factors to calculate reasonable compensation.
The factors include the size of the estate, the number of beneficiaries involved in the estate, the complexity of the estate’s assets, and the number of recorded hours that an executor has spent settling the estate.
Now that we understand the notion of reasonable compensation, let’s take a look at each state’s executor fees:
Alabama Executor Fees
Alabama executor fees are based on reasonable compensation*.
In most cases, the deceased’s will stipulates how much the executor should be paid for their services. If the will does not stipulate an executor fee, then the probate court will determine a reasonable compensation for the services that the executor has offered.
Alaska Executor Fees
Alaska executor fees are determined by reasonable compensation.
Like the compensation laws in many other states, Alaska’s executor compensation laws stipulate that an executor must be paid fairly for services provided. Many people think $25-$35/hour is reasonable, but a personal representative can also suggest different forms of payment in Alaska*.
Unless the will stipulates a certain payment, the probate court in the Alaskan county will determine the reasonable compensation.
Arizona Executor Fees
Arizona executor fees are calculated by reasonable compensation.
You might be noticing a trend among the first few states that we’ve listed - all the states use the “reasonable compensation” calculation to determine executor fees.
Reasonable compensation is a common theme among states when calculating executor compensation, and Arizona is no different. Unless the deceased’s will stipulates a specific amount, the probate court will pay the executor reasonable compensation for the services that the executor has provided.
Arkansas Executor Fees
Arkansas executor fees are determined by reasonable compensation.
California Executor Fees
California executor fees are based on the estate’s value.
The fees are broken down into the following percentages:
- 4% of the first $100,000
- 3% of the next $100,000
- 2% of the next $800,000
- 1% of the next $9 million
- 0.5% of the next $15 million
- A reasonable amount as determined by the probate court over $25 million
Colorado Executor Fees
Colorado executor fees are based on reasonable compensation.
Connecticut Executor Fees
Connecticut executor fees are determined by reasonable compensation.
Delaware Executor Fees
Delaware executor fees are calculated based on reasonable compensation.
Florida Executor Fees
Florida executor fees are determined by reasonable compensation.
Georgia Executor Fees
Georgia executor fees are based upon a percentage of the money that an executor receives and distributes on behalf of the estate. In addition, Georgia’s executor fees include an extra percentage for reasonable compensation.
The percentages are broken down into different categories. In Georgia, an executor is paid by the following:
- 2.5% of all cash received by the estate
- 2.5% of all cash disbursed from the estate
- Reasonable compensation not exceeding 3% of the value of all other assets distributed
- 10% on the interest earned on any money that the executor loans to the estate
It’s important to note that the 2.5% for all cash received and cash disbursed does not include any assets that already have designated beneficiaries. So a “Payable on Death” or “Transfer on Death” account would not apply. Any assets in a trust account would also not apply, as those assets transfer automatically upon death.
Hawaii Executor Fees
Hawaii executor fees are based on reasonable compensation for the executor’s services.
Idaho Executor Fees
Idaho executor fees are calculated by reasonable compensation.
Illinois Executor Fees
Illinois executor fees are determined by reasonable compensation as based upon the executor’s services.
Indiana Executor Fees
Indiana executor fees are based on reasonable compensation.
Iowa Executor Fees
Iowa executor fees cannot exceed certain percentages of the value of the estate.
Even though Iowa legislation stipulates that executors are entitled to reasonable compensation, state statutes dictate that the compensation cannot exceed certain predetermined percentages of the estate’s value.
The percentages are as follows:
- 6% of the first $1,000
- 4% of the next $4,000
- 2% of any remaining assets exceeding $5,000
Kansas Executor Fees
Kansas executor fees are calculated based on reasonable compensation.
Kentucky Executor Fees
Kentucky executor fees cannot exceed 5% of the estate’s value.
Kentucky state law states that executors can receive a reasonable compensation for services rendered to the estate, but the reasonable compensation does have its limits.
No executor in Kentucky can receive compensation that is greater than 5% of the total estate value.
There is a small caveat to that, though. In addition to the 5% of the total estate value, executors are actually allowed to receive up to 5% of the cash collected by the executor on behalf of the estate.
Louisiana Executor Fees
Louisiana executor fees cannot exceed 2.5% of the entire value of the estate.
Although Louisiana executors are entitled to reasonable compensation for their services to the estate, the compensation cannot exceed 2.5% of the estate’s gross value.
Maine Executor Fees
Maine executor fees are determined by the premise of reasonable compensation.
Maryland Executor Fees
Maryland executor fees are limited to a certain percentage of the estate’s value.
Even though Maryland executors are entitled to reasonable compensation, Maryland law stipulates that executor compensation cannot exceed certain percentages of the estate’s total value.
The percentages are broken down as follows:
- 9% of the first $20,000
- 3.6% of an any amount greater than $20,000
Massachusetts Executor Fees
Massachusetts executor fees are determined by reasonable compensation.
Michigan Executor Fees
Michigan executor fees are calculated based on reasonable compensation.
Minnesota Executor Fees
Minnesota executor fees are based on reasonable compensation.
Mississippi Executor Fees
Mississippi executor fees are determined by the basis of reasonable compensation.
Missouri Executor Fees
Missouri executor fees are determined by percentages of the estate’s total value.
The percentages that are used to determine Missouri executor compensation are broken down into the following sections:
- 5% of the first $5,000
- 4% of the next $20,000
- 3% of the next $75,000
- 3.75% of the next $300,000
- 2.5% of the next $600,000
- 2% of any assets greater than $1 million
Montana Executor Fees
Montana executor fees are calculated by percentages of the gross estate value.
The fee percentages are broken down into the following:
- 3% of the first $40,000
- 2% of anything greater than $40,000
Nebraska Executor Fees
Nebraska executor fees are calculated based on reasonable compensation.
Nevada Executor Fees
Nevada executor fees are calculated by percentages of the estate’s total value.
The percentages of the estate’s value that are used to calculate executor compensation are broken down into the following:
- 4% of the first $15,000
- 3% of the next $85,000
- 2% of the remaining assets
New Hampshire Executor Fees
New Hampshire executor fees are determined by reasonable compensation.
New Jersey Executor Fees
New Jersey executor fees are determined by both a percentage of the value of the estate and a percentage of any income accrued by the estate.
The percentages of the estate value are broken down into the following categories:
- 5% of the first $200,000 of assets
- 3.5% of the next $800,000 of assets
- 2% on any assets above $1 million
In addition, the executor receives 6% of any income accrued by the estate during the estate settlement process.
New Mexico Executor Fees
New Mexico Executor Fees are built on the basis of reasonable compensation.
New York Executor Fees
New York executor fees are based on percentages of the estate’s value.
The compensation is broken down into the following percentages:
- 5% of the first $100,000
- 4% of the next $200,000
- 3% of the next $700,000
- 2.5% of the next $4 million
- 2% on any balance greater than $5 million
North Carolina Executor Fees
North Carolina executor fees are determined by reasonable compensation.
North Dakota Executor Fees
North Dakota executor fees are calculated based upon reasonable compensation.
Ohio Executor Fees
Ohio executor fees are based on specific percentages of the estate’s value.
The percentages of the estate’s value fall into the following brackets:
- 4% of the first $100,000
- 3% of the next $300,000
- 2% of any remaining assets
- 1% of the value of any unsold real property
Oklahoma Executor Fees
Oklahoma executor fees are calculated by a percentage of the value of the estate.
The percentages of the estate’s value that determine executor compensation can be broken down into the following:
- 5% of the first $1,000
- 4% on the next $5,000
- 2.5% on any amount above $6,000
Oregon Executor Fees
Oregon executor fees are determined by specific percentages of the estate’s value.
Those percentages fall into the following categories:
- 7% on the first $1,000
- 4% of the next $9,000
- 3% of the next $40,000
- 2% on anything above $50,000
Pennsylvania Executor Fees
Pennsylvania executor fees are determined by reasonable compensation.
Rhode Island Executor Fees
Rhode Island executor fees are calculated on the basis of reasonable compensation.
South Carolina Executor Fees
South Carolina executor fees are determined by reasonable compensation.
South Dakota Executor Fees
South Dakota executor fees are calculated based on the premise of reasonable compensation.
Tennessee Executor Fees
Tennessee executor fees are based on reasonable compensation.
Texas Executor Fees
In Texas, executors are compensated for 5% of the money that receive or distribute while serving as the executor of the estate.
Texas executor fees are unique in that they are based on a percentage of the assets that the executor actually administers.
When determining this figure, executors cannot count the assets that are already held in accounts. Only cash that the executor receives or distributes on behalf of the estate can be counted toward this compensation calculation.
Utah Executor Fees
Utah executor fees are decided by the premise of reasonable compensation.
Vermont Executor Fees
Vermont executor fees are based on reasonable compensation.
Virginia Executor Fees
Virginia executor fees are calculated based on reasonable compensation.
Washington Executor Fees
Washington executor fees are determined by reasonable compensation, as calculated by the probate court.
West Virginia Executor Fees
West Virginia executor fees are determined by a percentage of the estate’s value.
The percentages of the estate values are broken down into the following categories:
- 5% of the first $100,000
- 4% of the next $300,000
- 3% of the next $400,000
- 2% of any amount above $800,000
Wisconsin Executor Fees
Wisconsin executor fees are set at 2% of the value of the estate.
Unlike most states’ executor fee laws, Wisconsin probate law stipulates that the payment is a set percentage of the entire value of the estate. That percentage is set at 2% by Wisconsin law.
Wyoming Executor Fees
Wyoming executor fees are determined by percentages of the estate’s value.
The percentages are broken down into a tiered schedule. The tiers are broken down into the following:
- 10% of the first $1,000
- 5% of the next $4,000
- 3% of the next $15,000
- 2% of any amount above $20,000
Do all executors get paid?
All executors are entitled to receive compensation for their efforts.
The role of an executor is not an easy one. Serving as an executor requires many months of research, discipline, and effort.
Thankfully, you do not have to serve as an executor free of charge.
Even if the deceased’s will makes no reference to executor fees, an executor can claim compensation through the probate court. The local probate court will then follow state laws to determine how much the executor should be compensated.
Are executor fees taxed?
Yes, executor fees are taxed as ordinary income.
According to the IRS, executors must record the compensation that they receive for services offered as ordinary income.
There are a few exceptions to the rule, of course. If an individual runs a business where they serve as the executor of estates (or runs a law firm where they operate as a probate attorney and also serve as executor), then the individual would report the compensation as business income.
Unless you are operating your own business where you offer executor services, though, then executor fees should be recorded as ordinary income.
Can an executor refuse payment?
Yes, an executor can refuse or waive executor fees.
It is rare for an executor to refuse payment. After all, the executor has worked diligently through the estate settlement process, so compensation seems fair.
In some cases, though, an executor may choose to waive or refuse compensation for services offered to the estate.
An executor might do this if they are also a beneficiary of the deceased’s estate and are set to receive assets from the estate.
In that case, the executor might waive executor fees so that there is not an apparent conflict of interest.
We’ll get to the possibility of a conflict of interest next.
What if an executor is also a beneficiary?
There are no rules preventing an executor from also being a beneficiary, and the executor is still entitled to compensation for services offered to the estate.
A beneficiary of the estate can also serve as the executor. In fact, this happens more often than you might think.
Imagine a son or daughter who is administering their parent’s estate. Or imagine a brother or sister who is settling their sibling’s estate. In those cases, it’s reasonable to imagine that the son, daughter, brother, or sister might be serving as both the estate executor and also be a beneficiary of the deceased’s estate.
There is no law preventing an executor from also being a beneficiary of the estate. That is certainly legal.
In addition to an individual being both the executor and a beneficiary of the estate, the individual may also claim executor fees as compensation for services offered to the estate. That is also legal.
In some cases, though, the executor/beneficiary might choose to waive the executor fee to remove the possibility of other beneficiaries seeing them as self-serving. The last thing an executor wants is other beneficiaries claiming that the executor is mishandling the estate. Such claims could potentially cause legal disputes that would only delay the probate process and result in additional expenses.
In order to minimize the possibility of a conflict of interest, many executors who are also beneficiaries of the estate will decide that the best course of action is just to waive the executor fees.
Who pays executor fees?
Executor fees are paid from the estate assets.
The beneficiaries of the estate do not pay the executor fees. Nor does the probate court pay the executor fees.
The executor fees come solely from the estate assets.
What if the will’s compensation is not reasonable?
If the compensation directed in the deceased’s will is not reasonable, then the executor may appeal to the probate court to overrule the deceased’s will and grant the executor reasonable compensation.
This situation might sound strange, but let’s imagine the following scenario:
Pascal drafts a will in 1974, naming Richard as the executor of Pascal’s estate. In the will, Pascal writes that Richard is entitled to a flat fee of $100 for services offered during the estate settlement process.
Pascal lives until 2022, when he passes away. Between the years of 1974 and 2022, however, Pascal did not have any major life changes and did not see a need to draft a new will.
The 1974 will still applies to Pascal’s estate, and Pascal is considered to have died testate (with a will) as opposed to intestate (without a will).
But Richard does not agree with the flat fee of $100. After all, that figure might have been reasonable in 1974, but it is no longer reasonable compensation for an executor in 2022.
Richard appeals to the probate court, asking the probate court to overrule the executor fees listed in the will and to grant him reasonable compensation for services offered.
The probate court will likely grant Richard reasonable compensation for his services as executor, overruling the original executor fees included in Pascal’s will.
If you are serving as an executor for an estate where the deceased’s will was written many years ago, or if the deceased’s will is recent but lists a low flat fee for executor compensation, you may want to consider appealing to the probate court.
As long as the executor’s justification for the new compensation is reasonable, the probate court will likely grant the executor reasonable compensation.
