How is an executor compensated?

An executor is an individual appointed by a court to handle the estate of a deceased person, including paying debts and distributing the remaining assets. In California, executors are typically compensated by a commission based on the size of the estate they administer. The commission rate is set by law and is based on the size of the estate and amount of time spent dealing with the estate’s affairs. For estates valued at under $100,000, the executor can take a maximum of 4% of the estate as commission. For estates between $100,000 and $200,000, the rate is 3.5%, and over $200,000, it is 2.5%. These commissions are typically paid from the assets of the deceased person’s estate. Executors may also be able to charge certain out-of-pocket expenses such as filing fees for documents, travel expenses, and costs for other services related to administering the estate. If these expenses exceed $1,000, the executor must file an accounting of expenses and get court approval for the additional amounts. In California, executors are allowed to be paid a reasonable fee for their services, so long as the estate is solvent. The executor should also be aware that as a representative of the estate, he/she is expected to act fairly and honestly in distributing the assets. If the court determines that an executor has acted inappropriately, a denial or reduction of their fee may be imposed.

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