Virginia Executor Compensation: What Executors Can Legally Be Paid

Serving as an executor in Virginia is not a volunteer role in the legal sense — you are entitled to be paid for your time and effort. But the rules governing that compensation are specific, the entitlement is conditional on meeting a procedural requirement most lay executors don't know about, and the amount is ultimately subject to review by the Commissioner of Accounts.

What Virginia Law Says About Executor Compensation

Virginia Code § 64.2-1208 gives fiduciaries — executors, administrators, and trustees — a statutory right to reasonable compensation for their services. There is no fixed percentage rate mandated by statute. Unlike some states that prescribe a graduated fee (2% of the first $100,000, 1.5% of the next $200,000, and so on), Virginia uses a "reasonable compensation" standard.

In practice, the Commissioner of Accounts applies a loose benchmark of roughly 2% to 5% of the estate's gross value as a starting point, but this is a guideline, not a ceiling or floor. The Commissioner examines:

• The total size and complexity of the estate
• The time the executor actually spent administering it
• The difficulty of the work performed
• The results achieved (were all debts paid, all assets located and distributed correctly?)
• Whether professional services such as attorneys or accountants were hired — duplicating their work reduces the executor's reasonable fee

For a large, complex estate involving contested creditor claims, out-of-state assets, or a Medicaid recovery dispute with the Virginia Department of Medical Assistance Services, an executor can justify a higher fee. For a simple estate with a few accounts and a cooperative family, a lower fee is appropriate.

The Prerequisite: Filing the List of Heirs

This is the requirement most executors miss. Under Virginia Code § 64.2-509, an executor is statutorily prohibited from receiving any compensation until the List of Heirs (Form CC-1611) has been filed and officially recorded with the Circuit Court Clerk.

Form CC-1611 identifies every person who would inherit under Virginia's intestate succession laws — not the will's beneficiaries, but the heirs at law who would take if no will existed. It must be filed under oath at or very shortly after the qualification appointment.

Taking a distribution of executor's fees before CC-1611 is recorded is not just procedurally improper — it exposes the executor to a personal liability claim from beneficiaries and can trigger disciplinary action by the Commissioner of Accounts.

When Executors Waive Compensation

Many family member executors choose to waive their compensation, particularly in smaller estates or situations where they are also a primary beneficiary. Waiving compensation makes sense from a tax perspective: executor fees are taxable income to the recipient, whereas an inheritance or bequest generally is not.

If you intend to waive your fee, document the waiver in writing. Some executors make this election formally in a letter to the estate attorney or to the Commissioner of Accounts. The waiver should be unambiguous to avoid any later dispute among beneficiaries about whether an undisclosed fee was taken.

What Virginia Executors Are Actually Required to Do

Executor compensation in Virginia is earned through a substantial, multi-month administrative workload. The duties are not merely signing a few papers — they carry serious legal obligations with personal liability consequences for failures.

Immediate duties (first 30 days):

• Locate and secure the original Last Will and Testament
• File the will with the Circuit Court Clerk and qualify as executor
• File Form CC-1611 (List of Heirs) under oath
• Within 30 days, send written notice of qualification to all heirs and beneficiaries
• Secure the decedent's real property, personal property, and financial accounts
• Order sufficient certified death certificates from the Virginia Department of Health (typically 6–10 copies)
• Apply for an Employer Identification Number (EIN) from the IRS for the estate
• Open a dedicated estate checking account using the EIN

Asset management duties (months 1–4):

• Identify and inventory all probate assets at their fair market value as of the date of death
• Distinguish probate assets from non-probate assets (POD accounts, TOD accounts, joint tenancy property, trust assets)
• Consolidate liquid probate assets into the estate checking account
• File the inventory (Form CC-1670) with the Commissioner of Accounts within four months of qualification

Creditor and tax duties (months 1–16):

• Identify all known creditors
• Comply with the creditor notice process — either through the Commissioner of Accounts (Debts and Demands hearing) or using the new non-judicial notice process under Virginia Code § 64.2-508.1, effective July 2026
• Pay valid creditor claims in the statutory priority order under Virginia Code § 64.2-528
• File the decedent's final personal income tax return
• File fiduciary income tax returns for the estate as a separate taxable entity
• Submit the first accounting to the Commissioner of Accounts within 16 months of qualification

Distribution duties:

• Obtain refunding bonds from beneficiaries if distributing assets before the one-year mark from qualification (required if using the new non-judicial creditor notice process)
• Distribute remaining estate assets to beneficiaries per the will or per intestacy
• File a final accounting when all assets have been distributed

Out-of-State Executors: The Surety Bond Requirement

Non-Virginia residents named as executors face an additional obligation. Under Virginia Code § 64.2-1426, a nonresident executor must post a surety bond — a bond backed by a licensed corporate insurer — unless the will explicitly waives the requirement or a Virginia co-executor is named alongside them.

A bond without surety (a personal promise to act faithfully) is sufficient for resident executors in most cases. For nonresident executors, that personal promise is not enough. The cost of a corporate surety bond depends on the estate's size and the bond premium rates of the insurer, typically ranging from 0.5% to 1% of the bonded amount per year.

Commissioner of Accounts Review

When the executor submits their accountings, the Commissioner of Accounts reviews the claimed executor's fee as part of the overall accounting. If the fee appears unreasonably high relative to the work performed and the estate's complexity, the Commissioner can reduce it — and that reduction stands unless the executor appeals to the Circuit Court.

Keeping a contemporaneous time log documenting the hours spent and tasks performed is the most effective way to justify your compensation if the Commissioner questions it.

The executor's role in Virginia is demanding, time-sensitive, and carries real personal liability risk. The Virginia Estate Settlement Guide lays out every deadline, every required form, and the exact Commissioner of Accounts process — so you can execute your duties correctly without spending money on attorney consultations for administrative steps you can handle yourself.

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