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How Much Do Executors Get Paid? Fees by State and Country

The Baseline: Yes, Executors Get Paid

Serving as executor is real work. The average non-professional executor spends roughly 570 hours over 16 months settling an estate. Many jurisdictions allow executors to claim compensation, but whether a family executor is paid depends on local law and the will's terms.

US State Fee Structures

States use different compensation rules: some have statutory schedules or minimums, while others rely on "reasonable compensation" determined by the court.

States With Statutory Percentages

Examples of statutory schedules include:

  • New York: 5% on the first $100,000, 4% on the next $200,000, 3% on the next $700,000, 2.5% on the next $4 million, and 2% above $5 million
  • California: 4% on the first $100,000, 3% on the next $100,000, 2% on the next $800,000, 1% on the next $9 million, and 0.5% on the next $15 million; above $25 million, the court sets a reasonable amount
  • New Jersey: 5% on the first $200,000, 3.5% on the next $800,000, and 2% above $1 million
  • Missouri: 5% on the first $5,000, 4% on the next $20,000, 3% on the next $75,000, 2.75% on the next $300,000, 2.5% on the next $600,000, and 2% above $1 million

On a $500,000 estate in New York, the statutory fee works out to $19,000. In California, it's $13,000. In states with separate statutory compensation for legal services, an attorney may also be paid for work on the estate.

States With "Reasonable Compensation"

Most states — including Texas, Florida, Ohio, and Pennsylvania — use a "reasonable compensation" standard. The court considers the estate's size, complexity, time spent, skill required, and results achieved. In practice, courts often approve 2% to 5% of the estate's value, but there's no guarantee.

This creates uncertainty for executors. Some hire attorneys to petition the court for a specific fee, which itself costs money.

Can the Will Override the Default?

Yes. The will can set a specific compensation amount ("my executor shall receive $10,000") or waive compensation entirely. If the will is silent, statutory or reasonable compensation rules apply.

Many family executors — especially surviving spouses or adult children — waive their fee entirely, either out of family obligation or because claiming a fee would be taxable income while inheriting the same amount might not be.

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Executor Pay in the UK, Canada, and Australia

United Kingdom

UK law does not provide for executor compensation unless the will specifically authorizes it. Professional executors (solicitors, banks) charge fees laid out in their terms of engagement, but family executors who serve without a fee provision receive nothing beyond expense reimbursement.

Canada

Canadian provinces generally follow the "customary 5% rule": up to 2.5% on capital receipts plus 2.5% on capital disbursements, often with a care and management fee of 0.4% per year on the estate's value. Ontario, British Columbia, and Alberta each apply this framework with provincial variations.

Alberta uses a "fair and reasonable" standard that considers complexity, time, and the executor's skill level — similar to the US reasonable compensation model.

Australia

Australian states allow "commission" for executors, determined by the court at the estate's conclusion. Rates vary by state but typically range from 1% to 5% of the estate's capital value plus a percentage of income earned during administration. The executor must petition the court for commission — it's not automatic.

What About Expenses?

Separate from compensation, executors are entitled to reimbursement for reasonable out-of-pocket expenses: court filing fees, postage, certified copies of documents, travel to and from the courthouse or the deceased's property, storage costs for estate assets, and professional fees (appraisers, locksmiths, accountants).

Executors often advance these costs from personal funds while waiting for the estate bank account to open. Keep detailed receipts — the estate repays these before any distributions to beneficiaries.

Tax Treatment

Executor compensation is taxable income, reported on the executor's personal tax return. This is different from an inheritance, which is generally not taxable to the beneficiary at the federal level (though some states impose inheritance taxes).

For family executors who are also beneficiaries, the tax math matters: $10,000 in executor fees is fully taxable, while $10,000 in inherited assets typically is not. Some executors waive their fee to avoid the tax hit, effectively increasing their after-tax inheritance.

Tracking Your Time

Whether your state uses statutory fees or reasonable compensation, keeping a log of hours spent on estate administration protects you. If anyone challenges your fee, the log demonstrates the actual work performed. The How to Read and Execute a Will toolkit includes a decision log and time tracker designed specifically for this purpose.

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