Can an Executor Charge Fees in New Zealand?

You've spent months sorting through bank accounts, filing probate, dealing with IRD, and fielding calls from impatient beneficiaries. Can you charge the estate for your time? The answer in New Zealand is: it depends on what the will says.

The Default Rule: No Payment

Under New Zealand law, an executor is not automatically entitled to charge fees for administering an estate. The role is considered a duty — you agreed to carry it out when the will-maker named you and you accepted the appointment.

This means a family member serving as executor — which is the majority of cases — does unpaid work unless the will specifically provides otherwise.

You can, however, recover out-of-pocket expenses from the estate. Travel costs to attend to estate matters, postage, filing fees, death certificate charges, and similar disbursements are legitimately reimbursed. The distinction is between expenses (reimbursable) and your time (not compensable unless authorised).

When an Executor Can Charge

There are three situations where an executor can receive payment:

1. The Will Authorises It

If the will includes a "charging clause" — explicit language authorising the executor to charge reasonable fees for their services — then the executor can be paid. This is common in wills that name a professional (a solicitor or accountant) as executor, since no professional would accept the role without the ability to bill for their time.

Family-member executors rarely have a charging clause written in their favour, because most will-makers don't expect their children or siblings to charge the estate.

2. All Beneficiaries Agree

Even without a charging clause, all beneficiaries can unanimously agree to pay the executor from the estate. This must be informed consent — every beneficiary needs to know the amount, agree to it, and understand that it reduces their share.

If even one beneficiary objects, this route is closed. And it's worth noting that beneficiaries who initially agree can later challenge the amount in court if they believe it was excessive.

3. The Court Orders It

An executor can apply to the High Court for an order allowing "fair and reasonable remuneration." The court considers factors like:

• The complexity and size of the estate
• The time spent on administration
• The skill and expertise required
• Whether the executor's work saved the estate money (by not hiring a solicitor, for example)
• The rates that a professional administrator would charge for equivalent work

Court applications for executor remuneration are uncommon for small estates because the legal costs of the application can exceed the payment itself.

Corporate Executor Fees

Professional executors — Public Trust, Perpetual Guardian, Trustees Executors — typically have charging clauses or fee terms in their appointment terms. Fee structures vary, but commonly include:

• An acceptance or setup fee (Public Trust charges around $6,495)
• A percentage of the gross estate value (Public Trust typically charges 4% to 5%)
• Annual management fees for ongoing trust administration

At a 4% to 5% administration rate plus setup and other fees, charges on a $500,000 estate can total around $25,000 to $30,000. These fees are disclosed in the executor's terms of appointment, but beneficiaries often only discover the full impact after the will-maker has died.

What Counts as "Reasonable"

When a charging clause exists or beneficiaries agree to payment, "reasonable" is the standard. The appropriate amount depends on the will, the estate's complexity, the work required, and any court order. Keep time records and check the written fee terms rather than assuming a percentage or hourly rate.

Expenses vs. Fees: The Safe Line

Regardless of whether you can charge fees, you should always track and claim your expenses:

• Filing fees ($275 for probate, $35 per death certificate)
• Postage and courier costs
• Travel expenses directly related to estate administration
• Newspaper advertising for creditor notices
• Professional fees you've engaged on behalf of the estate (accountant, valuer, conveyancer)

Keep receipts for everything. Beneficiaries are entitled to see a full accounting of estate expenses, and clear records prevent disputes.

The Practical Reality

Most family-member executors in New Zealand serve without payment. The work is thankless, time-consuming, and occasionally emotionally draining — but charging fees can create friction with siblings, partners, and other beneficiaries who feel the executor is profiting from a family death.

If you're writing a will and plan to name a family member as executor, consider adding a charging clause that authorises reasonable compensation. It's a small addition to the will that acknowledges the real burden the role places on someone.

Our New Zealand End-of-Life Planning Guide includes a detailed executor administration framework — covering the duties, the liability exposure, and the expense-tracking protocols that protect both the executor and the beneficiaries throughout the process.

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