Should I Take My Executor Fee?

YES*

 

* Yes you should take your executor’s fee.  You likely had to manage life, grief, and estate administration, face challenge after challenge, be a cleanout expert, organizer, diplomat, and negotiator, and wear countless hats you never saw coming.  It likely took hundreds of hours.  But this is an opinion piece and we’re biased pro-executor.

The Executor fee may be specified in the will.  When that is not the case, the Executor fee calculation table is specified in the state statutes.  These are calculations you should know.  Talk with your estate attorney to understand these calculations.  EstateExec has a good resource for better understanding the executor fee and even has a state-by-state calculator for ascertaining an executor fee in your state. See: EstateExec: State-Specific Executor Fee Calculator

Since we’ve made it clear that we think you should take the executor fee and everything past the asterisk is ancillary, we’ll proceed with a few things to consider. We like to be definitive, but we realize there may be more to this than meets the eye. Here are some considerations…

Talk to your accountant about the executor fee.

Not the estate accountant, your accountant.  If you are one of many beneficiaries, taking or refusing the executor fee will be calculated differently than if you are a single or 1 of 2 beneficiaries.  Refusing the executor fee leaves the money in the estate to be distributed to devisees according to the will or state intestate law.

If you are an executor and an heir, the inheritance or distribution income may be treated differently than the fee you receive as an executor.  Ask your accountant how each scenario plays out.    There may be tax implications to consider.  This is particularly relevant from state to state, and whether the state has an an inheritance tax or not.

Talk to the beneficiaries.

Just kidding.  This is your decision.  If you are the executor or personal representative, and a beneficiary of the estate, you’re living an experience the other beneficiaries are not.  We estimate the average estate consumes 500+ hours of the named executor’s time.  Compensation for that time is deserved.

Maybe you’re not a beneficiary.  Then by all means, and by all standards of ethics, take the fee.

Under either circumstance, you’re under no moral obligation to do the job for free.

Frankly, after “executor-ing” you probably deserve a break.  On a beach.  With a cool drink.

But my brother doesn’t think I should take the executor’s fee

See above.

But my sister helped me with the estate

Refer to the accountant advice above.  Not taking the fee and leaving it in the estate may have personal tax consequences.

But you know, we’re human and realize you are too.  Taking the fee is your right and guilt should have little part in this.  Perhaps the executor fee could pay for a nice trip for you and your sister. What’s fair is up to you.

I just don’t feel right taking it

This is your decision and likely a personal one.  If you have such qualms, we strongly encourage you to weigh the advice of your accountant.

There’s certainly nothing wrong with taking the fee, making a donation to the decedent’s favorite charity as a memorial.  Just make sure you take the deduction!