If you’ve been appointed as the executor or administrator of a loved one’s estate, you’ve likely discovered that the job involves a great deal more than simply distributing assets. Between tracking down paperwork, dealing with creditors, and navigating the probate process, it can often feel like a full-time job. One of the first questions many people ask is: Should I take compensation for this work?
You are entitled to compensation
In most cases, executors and administrators are entitled to compensation for their time and effort. This payment is legally known as an executor or personal representative fee and is paid out of the probate estate, not by the beneficiaries themselves.
It’s easy to underestimate the workload involved. Managing an estate typically includes tasks like:
- Filing court documents
- Notifying beneficiaries and creditors
- Managing bank accounts and investments
- Arranging appraisals and sales of property
- Filing tax returns
- Distributing assets
Where to Look for Guidance
The first step is to check the will. Some wills specify how much the executor should be paid or may even request that no fee be taken. In other cases, the will might leave a specific bequest (a gift) in lieu of compensation, which can be beneficial since a bequest is non-taxable, whereas executor fees are taxed as ordinary income.
If the will is silent on compensation—or there is no will—state law steps in. Each state has its own rules:
- Some states calculate compensation as a percentage of the estate’s value.
- Others may use a flat fee or an hourly rate.
- In some jurisdictions, the court must approve any compensation.
To understand your specific rights, it’s best to consult the probate laws in the state where the estate is being administered. To learn more,refer to our article: “Executor and Personal Representative Fees Explained: What to Expect During Probate"
When It May Not Make Sense to Accept Compensation
There are scenarios where taking compensation might not be the best financial move. For instance:
- If you are also a major beneficiary, taking a taxable executor fee might reduce your net inheritance.
- Family dynamics can also play a role—some beneficiaries may push you to waive your fee, especially if the estate is small and emotions are high.
It’s important to note that you are not obligated to waive compensation just to keep the peace. Being an executor is a serious responsibility, and you have the legal right to be paid for your time—regardless of pressure from others.
Balancing Fairness and Family Harmony
If you are concerned about tensions, consider:
- Talking openly with beneficiaries about your decision and the reasons behind it.
- Showing them documentation of your time and effort.
- Exploring alternatives like a reduced fee or a partial waiver.
This transparency can go a long way in avoiding misunderstandings or resentment.
Final Thoughts
Whether you accept compensation or not is a personal decision, but it should be an informed one. Understand your legal rights, review the will, and consider the implications—both financial and relational. Just remember: you’re taking on a challenging and important role. EstateMin can help with this, ask your lawyer today if they are using EstateMin or read more about how it can help you here.
If you’d like more detail about how executor compensation is calculated in your state or when it’s typically paid, refer to our article: “Executor and Personal Representative Fees Explained: What to Expect During Probate" or Executor Compensation by State (2025): How Much Executors Get Paid in Each U.S. State
Disclaimer: Please note that the information provided in this article is for general informational purposes only and should not be construed as legal advice. It is always recommended to consult with a qualified legal professional for advice tailored to your specific situation. No liability whatsoever is accepted by EstateMatter from any action taken in reliance of the information contained on this website.