Executor Fees: What You Can Expect to Pay

Executor fees vary based on state laws, the complexity of the estate and any agreements made between the executor and beneficiaries. When determining compensation, many states use a percentage-based model, while others allow flat fees or hourly rates. If the will does not specify a payment structure, local probate courts may set the amount. Understanding how to set an executor fee involves reviewing legal guidelines and estate size, as well as assessing the level of work required. In some cases, executors may waive their fee, especially if they are a close family member of the deceased.

Connect with a financial advisor today who can help you create the right estate plan to take care of your family.

What Is an Executor Fee?

An executor fee is the portion of a deceased individual’s estate that the will’s executor receives.

The executor’s duties include several actions:

• Locate the assets that make up the estate.
• Notify beneficiaries of the deceased’s death.
• Pay off the deceased’s debts.
• Transfer the remaining assets to the estate’s beneficiaries.

In exchange for these services, executors typically receive compensation. The specific amount can vary considerably, depending on how your executor structures their fee.

How Much Does an Executor Get Paid?

The exact fee that an executor receives will vary, depending on the will and the state where the deceased lived.

Some people will specify a flat fee in their will, while others will simply specify reasonable compensation. The latter is more common, but many wills won’t mention executor compensation at all.

Executor Fees by State

Each state has its own laws governing executor compensation. It specifies the fees for their services. Most states use the reasonable compensation method to determine what fees can be charged for executor services. The remaining states use either a tiered percentage formula or a flat percentage when determining the fees in their state.

Reasonable compensation varies from state to state. States consider several factors, including the size of the estate, the complexity of its assets, the number of hours an executor spends on the estate and the number of beneficiaries involved. Some states, like California and New York, have fee schedules written into the state probate code that dictate what percentage of the estate’s assets to pay an executor.

In New York, for instance, executors earn 5% of the estate if it’s below $100,000, 4% of estates between $100,000 and $300,000, 3% on estates between $300,000 and $1,000,000, 2.5% for estates valued between $1,000,000 and $5,000,000 and 2% for estates in excess of $5,000,000. ¹

In California, these fees start at 4% for the first $100,000 of an estate’s value, 3% for the next $100,000 and 2% on the next $800,000. ² For larger estates, the administrator can receive a 1% fee on an estate’s value between $1 million and $9 million. Statutory fees are 0.5% for the next $15 million in estate value. The court determines fees for executors administering estates exceeding $25 million.

When Should an Executor Work For No Fee?

There is one notable example where it’s actually in the executor’s best interest to work without accepting a fee. This is when the executor is also a beneficiary, and taking a fee reduces the amount they are entitled to as a beneficiary.

While it may seem like it wouldn’t make a difference, the two amounts of money are distinct for tax purposes. The executor fee is taxed as ordinary income, but a bequest given to a beneficiary isn’t taxable.

The exception is if the estate is large enough to be subject to the federal estate tax. For 2026, the federal estate tax exemption is $15 million for individuals and $30 million for married couples.

If your estate is larger than this exemption, the income tax rate of the executor may be lower than the estate tax rate. This would mean that the executor is better off accepting compensation.

When Executor Fees May Be Higher

When a corporate trustee, attorney or accountant serves as an executor, fees may be higher due to the expertise required.

Professional executors often charge hourly rates or flat fees that align with industry standards. Some institutions may charge a base fee, plus a percentage of the estate’s assets. This may increase costs, but it can may also provide peace of mind by ensuring proper estate administration.

Estates with unique assets – such as businesses, real estate holdings and international investments –often require more time and expertise to administer. In these cases, higher executor fees may be justified.

Courts may approve additional compensation if an executor handles litigation, tax issues or intricate asset transfers. However, keeping detailed records of work performed is essential to justify higher fees.

If disputes arise over executor compensation, beneficiaries have the right to petition the court for a review. Courts evaluate whether the fees align with state guidelines and the estate’s complexity.

To avoid conflicts, executors should maintain clear communication with beneficiaries and provide an itemized accounting of time spent on estate matters.

Choosing Between a Family Executor and a Professional

Naming a family member as executor is the default for many people drafting a will, and for straightforward estates, it often works well.

However, the role involves more than most people expect. An executor has to perform several actions as part of the estate administration process.

• Locate and value assets
• Notify creditors
• File tax returns
• Manage distributions to beneficiaries
• Address problems among family members

Doing this during a period of grief, often without any prior experience in probate or estate administration, can lead to delays, errors and costs that the estate ultimately absorbs.

For a simple estate with a primary residence, a few financial accounts and clearly defined beneficiaries, a competent family member can typically handle the work. In that scenario, the family member may waive their executor fee entirely.

Enlisting an estate attorney to help fulfill legal and tax requirements reduces the risk of costly mistakes. The attorney’s bill for limited assistance will likely be far less than what a professional executor would charge for full administration.

The calculation changes when the estate is more complex and includes:

• A business interest
• Rental properties
• Assets in multiple states
• Significant tax planning considerations
• A family dynamic where conflict is likely

In these cases, a professional executor brings experience that a family member simply won’t have.

Corporate trustees and attorney executors handle these situations routinely. They know the filing deadlines, understand the tax implications and can make decisions without the emotional entanglement that often complicates family-administered estates. The fee they charge may be higher, but it can result in faster administration, fewer errors and reduced potential for litigation among beneficiaries.

There’s also a middle path that works for many families. You can name a trusted family member as executor while specifying in the will that the estate should retain a professional. This may include an attorney, accountant or both, to handle the legal, tax and financial aspects of administration.

The family member provides oversight and personal knowledge of your wishes, while the professional handles the technical work. Both receive compensation from the estate. The total cost is often lower than hiring a corporate trustee while still providing the expertise the estate needs.

Whoever you name, have the conversation with them before finalizing your will. An executor who doesn’t understand what the role involves or isn’t willing to take it on can create problems that ripple through the entire probate process.

Make sure they know where your documents are, who your attorney and financial advisor are and what the estate looks like in broad terms. It’s one of the more practical things you can do to protect what you’re leaving behind.

Preparation on the front end is cheaper than confusion on the back end

Bottom Line

Executor fees vary by state and typically depend on either the terms of the will or the probate court’s determination of reasonable compensation. When creating a will, you can specify exactly how much your executor should receive. This removes ambiguity and helps you plan your bequests with precision. If you don’t address this in the will, a probate court will decide what’s reasonable. However, that definition differs from state to state. Either way, understanding your executor’s compensation is important to factor into your estate plan, since those fees come directly out of the assets you leave behind.

Tips for Planning Your Estate

• Estate planning can be complex, particularly if your estate is large. That’s why it can be helpful to work with a financial advisor to get your affairs in order and account for tax issues. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, start now.
• It’s a good idea to take steps to minimize estate taxes if the estate is larger than the federal (and, if applicable, state) estate tax exemption. To do this, you can allocate portions of your estate to beneficiaries before you pass away. You could also set up a trust.

Photo credit: ©iStock.com/fizkes, ©iStock.com/welcomia, ©iStock.com/jacoblund