Is the Executor of a Will Compensated?
The executor of a will is the person who is in charge of executing the will and acts on behalf of the deceased’s estate. There are various tasks that the executor must do and decisions that he or she must make. The executor is sometimes called the administrator. The executor is typically named in the will of the deceased or is appointed by a judge. After a person passes away, his or her estate has to be probated. This means that any belongings and assets in the estate have to be distributed according to the person’s will, if there is one in place. The executor is in charge of making sure that the will is properly executed.
The Job of the Executor
The executor has duties and responsibilities that are related to the estate of the deceased. Some of the duties may include:
- Preparations for the funeral
- Making sure the deceased’s assets are secured
- Appraisal of the assets
- Filing for probate
- Payment of taxes and debts
- Accounting to the beneficiaries
- Distribution of the estate
The immediate needs include arranging and paying for the funeral. The executor may need to hire an attorney to assist with the administration of the estate.
Payment for Executor Duties
The executor may be paid for performing his or her duties. The will may provide for payment of the executor or administrator. That is the most straightforward method of payment. However, in many cases, the will does not say anything about paying the executor. If the will is silent on the matter, the executor is to be paid according to Texas probate code.
Some states provide more detailed specifics for how the executor is to be paid. In Texas, the law is a little more convoluted. In general, a will executor or administrator is entitled to 5% commission on any amounts that were received or paid out by the estate. The total payout cannot be more than 5% of the gross fair market value of the estate.
The executor is not to be paid on distribution of funds that were collected as part of a life insurance policy or on payments to the executor as a beneficiary. The court may deny compensation if it is determined that the executor did not fulfill the job duties or if the executor was removed.
Payment of Expenses
In addition to payment for executor duties, the administrator may also be entitled to repayment of expenses that were incurred as a result of performing administrative functions. Reasonable attorney’s fees may be allowed if they were necessary to manage the proceedings associated with the estate.
Expenses must be submitted to the court in writing and filed with the clerk. The charges need to be verified with an affidavit. The rules for payment of the executor can be slightly complex and therefore, it is helpful to seek guidance from a knowledgeable estate and probate attorney. Contact our experienced legal team at Michael P. Fleming & Associates, P.C. to discuss the details of your case today 713-221-6800.