Can an executor be paid for their role administering a Will?
An executor may seek payment (such as executor’s commission) for their troubles in administering an estate.
There a number of ways the payment may occur, including:
- The will-maker leaves a provision in the will specifying payment.
- The will-maker leaves assets to the executor and specifies it is intended as payment.
- The executor applies for payment of commission based on the nature of the estate they are administering.
What is an executor’s commission?
The executor’s commission is a payment approved by the court or all the affected beneficiaries to the executor as payment for their troubles and effort in administering an estate.
How is the executor’s commission calculated?
There is no fixed scale or fee for what an executor may be charged or might be entitled to charge.
The commission is generally determined having regard to the professionalism with which the executor has completed the role, the relative difficulty of the role, the size of the estate and the tasks that the executor was required to perform.
It is important to note that an executor’s commission cannot be levied without an order of the court or unanimous agreement of the affected beneficiaries.
As a general guide (though not necessarily the strict rule), the maximum commission previously granted by a court will be 6% on income derived and 5% on capital realised.
The maximums are generally reserved for very complicated, long duration or time-consuming estates. Executors should keep records of work done in their executorial role to justify commission.