What is an Estate Executor Fee?

An executor is a person appointed by the court after someone is deceased to settle the person's estate The executor is supposed to be given compensation for the work and the services they offer. The executor's fee is given under the guidance of the probate law. The fee differs with different states.

Basic compensation

There is a basic fee that is given to the executor. Depending on the state you are in, the executor is entitled to a certain percentage of the total amount in cash that the estate receives. He is given the fee once the court determines the completion of his work accordingly.

Additional fee

In a case where the executor's basic fee is low, the court can decide to increase the executor's fee to a certain percentage or where the collections of other funds like the insurance that is marred with a lot of complication. Then the court is in a position to allow an increase in the compensation fee. There are cases where the executor is expected to manage the estate as a business which is an additional service; this will also require an additional compensation fee.

Negotiable fee

The executor can negotiate their fee for an extra fee outside the fee of the executor that has been stipulated by the law. This is possible once the beneficiaries write an agreement for the same. The fees differ depending on the amount of work and the size of estate involved.

Compensation exclusion

The executor is not entitled to any fee that is received from financial institutions or any other firms including brokerage firms. There are duties that the executor performs, that are not entitled to compensation including the distribution of the estate proceeds to the beneficiaries or the collection of proceeds from any insurance policy.