Can someone please give me a little more insight on exactly how the $$ amount of an Executor Fee is decided? Is it a percentage of the total estate? Who decides what amount the Executor gets if they so choose to take it?

This is subject to local laws for example in NY: Calculating Executor Fees in New York | Administrator Commissions (http://www.nycprobate.com/executor_fee.html)

It will vary, depending on the rules or statutes for the particular state. The link supplied by ScottGem appears to be how it works in New York where, apparently, it is indeed a percentage of the estate.

In other places, it will be a reasonable hourly rate (which I believe is fairer, but that's just me).

It is also possible that the will (if there is one) specifies the fee.

The rules set by the states set a maximum fee that may be charged,but there is nothing that says the executor must actually take a fee at all. I would suggest that while being an executor may involve substantial time and effort, if the executor is a family member already sharing in part of the inheritance (for example one of the children if a parent has died) in my opinion it is best if that person not actually take a fee. The executor should rightfully be reimbursed for expenses incurred, of course, but to grab a few percent off the top is (in my opinion) highly likely to cause some resentment among the other heirs. Nevertheless, it is legal for the executor to charge up to the maximum set by state law, so if that's what he or she decides to do there's not much any of the other heirs can do to stop it. And also if the will stipulates a professional executor or co-executor there may not be much room for negotiation on that professional's fee.

If this is you writing your will: I learned from my parents that being executor was tough on my sister, the eldest child, who was on the other side of the country while I was with my parents when each one died. She could ask me to do things but she had to sign papers and Fedex them, a big pain.
I've written my will with a friend as executor, because my siblings are far away and older. I even named several other friends to take her place or help her, if she was unable or unwilling to do the job at the time. I stipulated $3,000, mainly because I want to be buried at sea or donated to a forensic outdoor study, either one a complicated process, and because I want several mementos mailed to people.

The rules set by the states set a maximum fee that may be charged,but there is nothing that says the executor must actually take a fee at all. I would suggest that while being an executor may involve substantial time and effort, if the executor is a family member already sharing in part of the inheritance (for example one of the children if a parent has died) in my opinion it is best if that person not actually take a fee. The executor should rightfully be reimbursed for expenses incurred, of course, but to grab a few percent off the top is (in my opinion) highly likely to cause some resentment among the other heirs. Nevertheless, it is legal for the executor to charge up to the maximum set by state law, so if that's what he or she decides to do there's not much any of the other heirs can do to stop it. And also if the will stipulates a professional executor or co-executor there may not be much room for negotiation on that professional's fee.Here is what is happening... My Aunt's stepson is Executor... This is in NJ... Back apx 4 month's ago, he had said he was going to take the Executor's Fee of $19k... Which I believe is the lowest amount, but I could be wrong... Well, needless to say, he hasn't even earned it! There were minor things that needed to be done to her house before it sold, and he never even bothered.. I'm talking about $40 in materials and a day worth of labor... But he just made excuses.. I just received an email from he 2 days ago, and all of a sudden, he's not talking about the $19k anymore, but now it's, "well I have a meeting with the accountant and he will decide what I am taking for the Executor Fee." Which I find to be total nonsense! I was under the impression as you stated, its up to him wheather he takes it and how much... I have no problem with him being reimbursed for his time and travel.. But it's not worth $19k... In the same email, he tells us the attorney is sending out some kind of "Bond" paperwork that we have to sign before we can receive our checks. Apparently by signing this we can't sue him.. I am at a total loss...

In NJ the executor fee is as follows:

"Under New Jersey law, the Executor of an estate is generally entitled to the following commissions: a. 6% on all estate income; b. 5% of the estate up to $200,000; c. 3.5% on excess above $200,000 up to $1,000,000; d. 2% on excess over $1,000,000 or such other percentage as the Superior Court may determine."

If the $19K is in line with this then he is indeed entitled to it. Again, he could turn it down if he wanted, but he's not required to. Note that the law doesn't require any set amount of work be performed - being named executor is all that's required for him to collect this (assuming that he isn't incompetent or fails to perform his required duties - but the fact that he has engaged an attorney makes that unlikely).

The paperwork they are sending should lay out the accounting for each heir as to how the distribution of the estate is calculated, including expenses (for the lawyer, for the executor fee, and other costs to administer the estate).

In NJ the executor fee is as follows:

"Under New Jersey law, the Executor of an estate is generally entitled to the following commissions: a. 6% on all estate income; b. 5% of the estate up to $200,000; c. 3.5% on excess above $200,000 up to $1,000,000; d. 2% on excess over $1,000,000 or such other percentage as the Superior Court may determine."

If the $19K is in line with this then he is indeed entitled to it. Again, he could turn it down if he wanted, but he's not required to. Note that the law doesn't require any set amount of work be performed - being named executor is all that's required for him to collect this (assuming that he isn't incompetent or fails to perform his required duties - but the fact that he has engaged an attorney makes that unlikely).

The paperwork they are sending should lay out the accounting for each heir as to how the distribution of the estate is calculated, including expenses (for the lawyer, for the executor fee, and other costs to administer the estate).

I received this email yesterday afternoon, but I am still confused...

Hi Everybody. Our lawyer asked that I complete a final accounting for the purpose of distribution of assets which he will be handling. Attached is the Estate Update as of today. As indicated in earlier emails, there are a number of legal steps involved.

First, I am providing the attorney a copy of your mailing addresses. He will be sending a bond letter that needs to be signed and returned by you in order for you to receive your portion of the estate.

Second, the distribution will take place in two parts. The first is the major share which will come from the Money Market Account minus the Executor's Fee. I kind of know what it's going to be but until the lawyer does the exact calculation, I can't quote you the figure. As you know, each beneficiary receives 25 percent of that share.

Third, the attorney was able to negotiate with the Title company at the Closing to reduce the escrow being held until we produce the tax waiver (which still needs to come from the state... NJ is so behind so that's going to take at least a month). It's $2,500. Combined with the balance in the regular checking account ($1,998.09) that will serve as the reserve for any future expenses. We still need to file an estate return which will be in mid-July. Don't know if we owe or will receive a refund, but there will be a small bill from the accountant for doing that. There's a small PSE&G final reading which will produce a small bill, and a partial refund from the house insurance company due to cancel ling the dwelling policy. Plan on receiving your remaining 25 percent when these issues are resolved.

Monthly Update on Estate Proceedings (April 28, 2014)



Checking Accounts:

Regular Account:



Balance on March 14: +2,311.87

Check 1035 on 4/3 (Twp. Of No. Bruns.-water) -8.70
Check 1036 on 4/3 (PSE&G (electric and gas) -116.74
Interest (March) +.02
Check 1037on 4/22 (Executor, reimbursement
For smoke and carbon monoxide and
Inspection fee) -188.38
Interest (April) +.02

Balance on April 28: +1,998.09



Money Market Account:


Balance on March 14: +156,481.64

Interest (March) +8.70
Deposit on April 8 (Final Fed Tax Return Refund) +945.00
Deposit on April 25 (House Sale) +239.928.45
Deposit on April 28 (Negotiated Reduction in Escrow
Because of No Tax Waiver) +2,500.00
Interest (April) +9.49

Balance on April 28, 2014 +399,873.28

Total Estate Balance: +401,871.37


I see the breakdown of percentages, thank you for that, but I still don't understand how to do the math to come up with the Executor Fee???

The total Estate balance is approx $400,000. So 5% of the first $200K is $10K. And 3.5% of the balance is about $7K. So the $19K figure is not out of line. Maybe he overestimated the estate.

I must say I am impresed with the executor's sharing of information regarding monthly cash activities. Too many executors take the attitide that the other heirs don't need to know the daty-to-day dertails, but being open like this shows he is being quite diligent.

By the way, the executor's fee is based on total assets of the estate. not just money market funds. So depending on the deceeased's personal property - a car, furniture, jewelry, etc - and any retirement or other investments the $19K fee may be correct.

The total Estate balance is approx $400,000. So 5% of the first $200K is $10K. And 3.5% of the balance is about $7K. So the $19K figure is not out of line. Maybe he overestimated the estate.


Thank you ScottGem! Now I understand, finally!