Executor Fees in New York: What You Are Legally Entitled to Receive

New York executors are not expected to work for free. The law sets a specific statutory commission that every executor is entitled to collect from the estate, calculated as a percentage of the assets they actually receive and distribute. Understanding this system helps you know what you are owed — and when it might make more sense to waive the fee.

How New York Calculates Executor Commissions

Under SCPA 2307, executor commissions in New York are calculated on a sliding scale based on the total value of the assets the executor actually receives and pays out during the administration. The commission structure is:

• 5% on the first $100,000 of estate assets
• 4% on the next $200,000
• 3% on the next $700,000
• 2.5% on the next $4,000,000
• 2% on amounts above $5,000,000

These percentages apply to assets the executor actually receives and distributes — not to the gross estate value as filed with the court. Assets that pass outside the estate (life insurance, IRAs with named beneficiaries, jointly held accounts) do not count toward the commission base.

A Practical Example

For an estate with $600,000 in probate assets:

On a $600,000 estate, the executor is legally entitled to $22,000 in commissions.

Multiple Executors

When more than one executor is named — a common arrangement in blended families or business partnerships — the commissions are shared. If there are two executors, each is entitled to receive commissions as if they were the sole executor, but the total commission paid out of the estate is generally limited. For two executors receiving full commissions each, the estate effectively pays double — which is why naming co-executors substantially increases the administration cost.

Where one executor does significantly more work than the other, the more active executor can petition the court for a larger share of the total commission, though this requires a court proceeding and documentation of the respective workloads.

What Assets Count Toward the Commission Base

The commission is calculated only on "estate assets" — property that actually passes through the executor's hands. This includes:

• Bank accounts in the decedent's sole name
• Investment and brokerage accounts without beneficiary designations
• Real estate in the decedent's name alone
• Personal property distributed to beneficiaries

It does not include:

• Life insurance proceeds paid directly to named beneficiaries
• IRA and 401(k) accounts with beneficiary designations
• Jointly held assets with right of survivorship
• Trust assets administered by a successor trustee

For estates where most wealth passes via non-probate transfers, the commission base may be quite small even if the decedent was wealthy.

Taking the Commission: Tax Implications

Executor commissions are taxable income to the executor in the year they are received. If you are also a beneficiary of the estate, there may be a tax planning reason to waive the commission: your inheritance as a beneficiary is generally not subject to income tax (though it may be subject to estate tax at the estate level), whereas a commission you receive is fully taxable as ordinary income.

Whether to take the commission or waive it depends on your marginal income tax rate, the size of your inheritance versus the commission amount, and the overall estate tax situation. This is a question worth discussing with a CPA.

Requesting Court Approval

In many cases, executor commissions do not require court approval to be paid — the executor simply takes the commission as part of the final accounting and distribution. However, if any beneficiary disputes the commission amount, or if the court is doing a formal judicial accounting, the commission must be explicitly approved.

Beneficiaries can challenge a commission if they believe the executor did not actually perform the work, particularly if the estate was largely administered by an attorney acting in both a legal and administrative capacity.

Professional Executors and Institutional Trustees

If a bank or trust company serves as executor, they typically charge their published fee schedule rather than the SCPA 2307 statutory commissions. These schedules are often similar to the statutory amounts but may include additional fees for specific services (real estate management, tax preparation, etc.). Review the fee schedule carefully before appointing an institutional executor — the numbers can add up quickly on a large estate.

Attorney Fees Are Separate

Executor commissions are separate from attorney fees. A probate attorney in New York typically charges an hourly rate of $300 to $600 depending on the firm and complexity. These legal fees are paid from the estate as an expense of administration, in addition to (not instead of) the executor's commission.

An executor who is well-organized and arrives at the attorney's office with a complete, indexed asset inventory can significantly reduce the attorney's billable hours — a meaningful benefit on a large estate.

The New York Estate Settlement Guide includes a commission calculation worksheet and an asset tracking system so you can document the value of every asset you receive and distribute, building the paper trail you need if your commission is ever questioned.

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