Nj Executor Commission Calculator

New Jersey Executor Commission Calculator

Estimate the statutory commission an executor may be entitled to receive for administering an estate in New Jersey.

function calculateCommission() { var estateValueInput = document.getElementById("estateValue").value; var estateIncomeInput = document.getElementById("estateIncome").value; var estateValue = parseFloat(estateValueInput); var estateIncome = parseFloat(estateIncomeInput); var resultDiv = document.getElementById("result"); resultDiv.innerHTML = ""; // Clear previous results if (isNaN(estateValue) || estateValue < 0) { resultDiv.innerHTML = "Please enter a valid non-negative number for Total Gross Estate Value."; return; } if (isNaN(estateIncome) || estateIncome 0) { var firstTierAmount = Math.min(remainingValue, 200000); corpusCommission += firstTierAmount * 0.05; remainingValue -= firstTierAmount; } // 3.5% on the next $800,000 (up to $1,000,000 total) if (remainingValue > 0) { var secondTierAmount = Math.min(remainingValue, 800000); corpusCommission += secondTierAmount * 0.035; remainingValue -= secondTierAmount; } // 2% on corpus exceeding $1,000,000 if (remainingValue > 0) { corpusCommission += remainingValue * 0.02; } // Calculate Income Commission based on NJ Statutes 3B:18-13 // 6% on all income received var incomeCommission = estateIncome * 0.06; var totalCommission = corpusCommission + incomeCommission; var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 2, maximumFractionDigits: 2, }); resultDiv.innerHTML = "

Estimated Commission:

" + "Corpus Commission: " + formatter.format(corpusCommission) + "" + "Income Commission: " + formatter.format(incomeCommission) + "" + "Total Estimated Commission: " + formatter.format(totalCommission) + "" + "This calculation provides an estimate based on standard New Jersey statutory rates. Actual commissions may vary based on court discretion, extraordinary services, or specific estate circumstances. Consult with a legal professional for precise guidance."; } .nj-executor-commission-calculator { font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif; background-color: #f9f9f9; padding: 25px; border-radius: 10px; box-shadow: 0 4px 12px rgba(0, 0, 0, 0.1); max-width: 600px; margin: 30px auto; border: 1px solid #e0e0e0; } .nj-executor-commission-calculator h2 { color: #2c3e50; text-align: center; margin-bottom: 20px; font-size: 1.8em; } .nj-executor-commission-calculator p { color: #555; line-height: 1.6; margin-bottom: 15px; } .nj-executor-commission-calculator .calculator-form .form-group { margin-bottom: 18px; } .nj-executor-commission-calculator .calculator-form label { display: block; margin-bottom: 8px; color: #34495e; font-weight: bold; font-size: 1.05em; } .nj-executor-commission-calculator .calculator-form input[type="number"] { width: calc(100% – 22px); padding: 12px; border: 1px solid #ccc; border-radius: 6px; font-size: 1em; box-sizing: border-box; transition: border-color 0.3s ease; } .nj-executor-commission-calculator .calculator-form input[type="number"]:focus { border-color: #007bff; outline: none; box-shadow: 0 0 5px rgba(0, 123, 255, 0.3); } .nj-executor-commission-calculator .calculator-form small { display: block; margin-top: 5px; color: #777; font-size: 0.85em; } .nj-executor-commission-calculator button { display: block; width: 100%; padding: 14px; background-color: #28a745; color: white; border: none; border-radius: 6px; font-size: 1.1em; font-weight: bold; cursor: pointer; transition: background-color 0.3s ease, transform 0.2s ease; margin-top: 25px; } .nj-executor-commission-calculator button:hover { background-color: #218838; transform: translateY(-2px); } .nj-executor-commission-calculator .calculator-result { margin-top: 30px; padding: 20px; background-color: #e9f7ef; border: 1px solid #d4edda; border-radius: 8px; color: #155724; } .nj-executor-commission-calculator .calculator-result h3 { color: #2c3e50; margin-top: 0; margin-bottom: 15px; font-size: 1.5em; text-align: center; } .nj-executor-commission-calculator .calculator-result p { margin-bottom: 10px; font-size: 1.1em; color: #333; } .nj-executor-commission-calculator .calculator-result p strong { color: #000; } .nj-executor-commission-calculator .calculator-result .disclaimer { font-size: 0.9em; color: #6a6a6a; margin-top: 20px; text-align: center; font-style: italic; }

Understanding New Jersey Executor Commission

When a person passes away, an executor is appointed to manage their estate, which involves gathering assets, paying debts and taxes, and distributing the remaining property to beneficiaries. This role carries significant legal and administrative responsibilities. In New Jersey, executors are entitled to receive compensation for their services, known as a commission.

How Executor Commissions Are Calculated in New Jersey

New Jersey statutes (specifically N.J.S.A. 3B:18-13 and 3B:18-14) outline the method for calculating executor commissions. The commission is generally based on two components: the "corpus" (principal) of the estate and any "income" generated by the estate during the period of administration.

1. Corpus Commission (Principal of the Estate)

The commission on the principal of the estate is calculated on a sliding scale:

• 5% on the first $200,000 of the gross estate value.
• 3.5% on the next $800,000 of the gross estate value (i.e., from $200,001 to $1,000,000).
• 2% on any amount of the gross estate value exceeding $1,000,000.

For example, if an estate has a gross value of $500,000:

• First $200,000: $200,000 * 0.05 = $10,000
• Remaining $300,000 ($500,000 – $200,000): $300,000 * 0.035 = $10,500
• Total Corpus Commission: $10,000 + $10,500 = $20,500

2. Income Commission

In addition to the corpus commission, an executor is entitled to a commission on any income generated by the estate during the administration period. This includes interest earned on bank accounts, dividends from stocks, rental income from properties, etc.

• 6% on all income received by the estate.

For example, if the estate generates $10,000 in income:

• Income Commission: $10,000 * 0.06 = $600

Important Considerations

• Court Approval: While the statutory rates provide a guideline, the Surrogate's Court ultimately approves the executor's commission. The court may adjust the commission based on the complexity of the estate, the services rendered, and other factors.
• Extraordinary Services: If an executor performs services beyond the ordinary duties (e.g., managing a complex business, engaging in litigation), they may petition the court for additional compensation for these "extraordinary services."
• Multiple Executors: If there are multiple executors, the total commission allowed by statute is typically divided among them. The court may allow an additional commission of up to 1% for each additional executor, but the total cannot exceed certain statutory limits. Our calculator assumes a single executor or the maximum standard rate.
• Waiver of Commission: An executor may choose to waive their commission, often if they are also a beneficiary and wish to maximize the inheritance for all beneficiaries, or for tax planning purposes.
• Tax Implications: Executor commissions are considered taxable income to the executor and are deductible expenses for the estate.

This calculator provides an estimate based on the standard statutory rates. Estate administration can be complex, and the actual commission may be subject to court review and specific circumstances. It is always advisable to consult with an experienced New Jersey estate attorney for personalized advice regarding executor duties and compensation.