NJ Executor Fee Calculator
Estimate statutory commissions for New Jersey Estate Executors (N.J.S.A. 3B:18-14)
Understanding New Jersey Executor Fees
In New Jersey, executors and administrators are entitled by law to compensation for their work in settling an estate. These fees, officially known as "commissions," are governed by New Jersey Statutes Annotated N.J.S.A. 3B:18-14 (for corpus) and 3B:18-13 (for income).
How the NJ Corpus Commission is Calculated
The corpus commission is based on the gross value of the assets handled by the executor. The fee is structured in tiers:
- 5% on the first $200,000 of the estate's principal.
- 3.5% on the excess above $200,000 up to $1,000,000.
- 2% on any excess above $1,000,000.
Income Commission
In addition to the corpus commission, an executor is entitled to an income commission. This is calculated as 6% of all income earned by the estate during the period of administration (such as interest from bank accounts or rental income from estate properties).
Multiple Executors
If there is more than one executor, New Jersey law allows for additional compensation. Generally, for each additional executor, the court may allow an additional 1% of the corpus commission. However, the total commission is usually capped and distributed among the co-executors as they agree or as the court directs.
Example Calculation
Imagine a New Jersey estate with a principal value (corpus) of $600,000 and earned income of $10,000.
- First $200,000: $200,000 × 5% = $10,000
- Remaining $400,000: $400,000 × 3.5% = $14,000
- Income Fee: $10,000 × 6% = $600
- Total Commission: $10,000 + $14,000 + $600 = $24,600
Important Considerations
- Non-Probate Assets: Assets that pass directly to beneficiaries (like life insurance with a named beneficiary or "Transfer on Death" accounts) are generally not included in the commission calculation.
- Specific Bequests: In some cases, specific items of property left to specific people might be excluded from the fee base.
- Taxability: Executor commissions are considered taxable income to the executor and are deductible for the estate on the fiduciary income tax return or the estate tax return.