How Do You Calculate Executor Fees

Executor Fee Calculator

Estimate the statutory commission for administering a probate estate based on standard sliding scale rates.

Include real estate, bank accounts, and personal property.

Dividends or interest earned during the probate process.

Estimated Commission: $0.00

This represents the total statutory fee based on a standard tiered calculation (5% to 2% model).

function calculateExecutorFee() { var estateValue = parseFloat(document.getElementById('estateValue').value) || 0; var estateIncome = parseFloat(document.getElementById('estateIncome').value) || 0; var totalSubjectToCommission = estateValue + estateIncome; var totalFee = 0; if (totalSubjectToCommission > 0) { // Standard Tiered Calculation (Based on common Probate Codes like NY/CA) // Tier 1: 5% on first $100,000 if (totalSubjectToCommission <= 100000) { totalFee = totalSubjectToCommission * 0.05; } else { totalFee += 100000 * 0.05; // Tier 2: 4% on next $100,000 if (totalSubjectToCommission <= 200000) { totalFee += (totalSubjectToCommission – 100000) * 0.04; } else { totalFee += 100000 * 0.04; // Tier 3: 3% on next $800,000 if (totalSubjectToCommission <= 1000000) { totalFee += (totalSubjectToCommission – 200000) * 0.03; } else { totalFee += 800000 * 0.03; // Tier 4: 2.5% on next $9,000,000 if (totalSubjectToCommission <= 10000000) { totalFee += (totalSubjectToCommission – 1000000) * 0.025; } else { totalFee += 9000000 * 0.025; // Tier 5: 2% on everything over $10,000,000 totalFee += (totalSubjectToCommission – 10000000) * 0.02; } } } } } document.getElementById('totalFeeDisplay').innerText = '$' + totalFee.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resultsArea').style.display = 'block'; }

How Do You Calculate Executor Fees?

Calculating executor fees (also known as fiduciary commissions) is a critical step in settling a deceased person's estate. In most jurisdictions, the executor is entitled to compensation for the significant time and responsibility involved in managing assets, paying debts, and distributing property to beneficiaries.

The Statutory Sliding Scale

Many states use a "sliding scale" to determine the maximum allowable fee. This ensures that the fee is proportional to the size of the estate. While rates vary by state, a common structure used by many probate courts is as follows:

• 5% on the first $100,000 of the estate value.
• 4% on the next $100,000.
• 3% on the next $800,000.
• 2.5% on the next $9,000,000.
• 2% on any value exceeding $10,000,000.

What Assets Are Included?

When calculating the "Gross Estate Value," executors typically include all assets that pass through probate. This includes real estate (unreduced by mortgages), bank accounts, stocks, bonds, and personal property. It generally does not include "non-probate" assets like life insurance payouts with named beneficiaries or joint accounts with rights of survivorship.

Example Calculation

If an estate is valued at $500,000, the calculation would break down as follows:

1. 5% of the first $100,000 = $5,000
2. 4% of the next $100,000 = $4,000
3. 3% of the remaining $300,000 = $9,000
4. Total Estimated Fee: $18,000

Important Considerations

It is important to note that executor fees are considered taxable income and must be reported on the executor's personal tax returns. Furthermore, if a will specifies a fixed fee or if the executor waives their commission, these statutory rates may not apply. Always consult with a probate attorney to ensure compliance with specific local laws and court requirements.