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Old 11-20-2022, 07:19 PM   #41
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I was the executor and POA for my mother and her moderate estate. I retired two years early to help care for her and take her to her numerous doctor appointments and hospital stays. She had a will and I had helped her organize her finances several years in advance.
Her estate wasnít complex except for the five timeshares (two in Mexico, one in SF, one in WA state and one Branson, MO.). She also had a ďpoints system vacation programĒ I had to close and transfer points to one of my sisters. My siblings and I were not interested in inheriting the actual timeshares, so I had to figure out how to get rid of them. Charities were not interested, so I had to work with each company to take back the timeshares. Washington was not difficult as that is our home state and they were willing to work with me for a fee and the probate process. Mexico took a few months, but wasnít too difficult once I found someone that spoke English and would return my calls and follow up on the legal paperwork. I had to file probate in CA and MO for the other two timeshares. This took time, a lot of research and effort. Our attorney would not help since it was out of state. The SF timeshare took time but went through eventually. The MO timeshare was the most difficult to deal with. It took well over a year. They kept losing documentation and would pass me off to other state/county contacts and I would have to start over. There were many days I would cry in frustration as I felt responsible to close these out and not incur additional maintenance fees. I kept meticulous notes and a spreadsheet of all expenses that I would send monthly to my family. Eventually the estate closed and I was able to distribute the remaining $. One sister insisted I be paid as her husband had just recently been through a similar ordeal with closing his fatherís estate. I made sure my other siblings were in agreement. Only one sister hesitated, but she she relented. The fee was less than 1% of the remainder of the estate at closing.
Please donít leave timeshares in your estate! They are nasty.
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Old 11-20-2022, 07:40 PM   #42
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Please donít leave timeshares in your estate! They are nasty.
Which would make them ideal bequests for people you don't particularly like.
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Old 11-21-2022, 06:03 AM   #43
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Which would make them ideal bequests for people you don't particularly like.
Interesting idea, bequeath liabilities rather than assets!
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Old 11-21-2022, 06:28 AM   #44
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Interesting idea, bequeath liabilities rather than assets!


AFAIK you can just not accept a bequest. So just leaves a problem for the executor.
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Old 11-21-2022, 11:28 AM   #45
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As others have said, the statutory executor fee differs by state. If you hear "X percent," then ask "X percent of what?"

In some states, it's X percent of the estate's value. But in Texas, for example, the statutory fee is "five percent commission on all amounts that the executor or administrator actually receives or pays out in cash in the administration of the estate." The statute also provides that the compensation "may not exceed, in the aggregate, more than five percent of the gross fair market value of the estate."

https://statutes.capitol.texas.gov/D...htm/ES.352.htm

That means, basically, five percent of the checks the executor writes (disbursements) and five percent of the deposits he makes (receipts), and by statute doesn't include life insurance proceeds, cash distributions to heirs, or cash on hand in a bank.

But get this. I just googled

texas executor commission

https://www.google.com/search?q=texa...r+compensation

The "featured snippet" at the top of the search results is this:

Quote:
According to the Estates Code, an executor in Texas is entitled to up to 5% of the estate's total financial transactions. For Example: If an executor has to settle an estate worth $250,000 - if they do their duties correctly, and honestly are entitled up to $12,500 as compensation for administering the estate. [bolding in original]
They got the "total financial transactions" kind of right, but then give a number that is 5% of the total estate. Oh, but it says "up to." Which technically is correct, but because of the structure, very few (maybe even zero?) estates will result in an executor commission of 5% of the total estate.

So I went to the actual website: https://www.clearestate.com/en-us/bl...tor-fees-texas

It does warn that the compensation "does not include certain estate assets" but doesn't ever give any number other than the 5% of the total estate. And this is google's top result and the snippet is probably the only thing most people will read.

Okay, so let's go to the second result. (I'm skipping google's Q&A because I just can't with the Q&A.) The second result is a Houston law firm's website: https://houston-probate-law.com/how-...texas-be-paid/

They do a decent job of explaining it, and actually include a calculation:

Quote:
A Texas executor can charge up to 5% of the estateís total financial transactions (all amounts the executor actually receives or pays out in cash in the administration of the estate), according to Texas Estates Code. For example, if the value of all estate assets was $200,000, and the executor actually paid out or received $18,000 in cash (all within 120 days of appointment), the maximum fee that could be charged would be $900 ($18K x 5%).
Correct. HOWEVER, if you continue scrolling down the page, there are "Related Questions." These are the first two:

Quote:
How much can an executor pay themselves in Texas?

In Texas, an executor is allowed to pay themselves at a rate of 5% of the value of the estate.

What is a reasonable executor fee in Texas?

A reasonable executor fee in Texas is typically 5% of the probate estateís value.[bolding in original]
The hell? And it gets worse. This is at the end:

Quote:
Executor Hourly Rate / Compensation Calculator

The Texas State Law Library has compiled an executor hourly rate calculator. In order to use the calculator, you must identify which county the will is being probated in and enter the terms of the will. You can use this executor hourly rate calculator to determine how much an executor can make in Texas.
I didn't see it on the State Law Library's website, so I called and a guy who's been there for 10 years says he's never heard of such a thing. I don't doubt him, because under the statute, executors don't have an hourly rate, the county where the will is probated has nothing to do with the executor's compensation, nor do the terms of the will.

Okay, let's go to the third google result: https://www.estateexec.com/Docs/Comp...tate_abbrev=TX

It starts out nice and clear:

Quote:
In Texas, an executor is entitled to 5% of all amounts the executor actually receives or pays out in cash in the administration of the estate, not to exceed 5% of the estate gross value. [bolding in original]
And goes on to give an example:

Quote:
So for example, a Texas estate with a gross value of $600K at death, with $100K in cash, that incurs $25K in estate expenses, would generate $26,250 in executor commissions (see calculator below).
No it wouldn't. It doesn't matter what the gross value of the estate is, or how much cash it has (except to operate as a ceiling on the compensation). I assume the "$25K in estate expenses" is the cash paid out by the executor in the course of administering the estate, and 5% of that is $1,312.50. Not $26,250.

So I tried to use the calculator and the types of numbers it calls for aren't the same as the types of numbers in the example. But I was able to make some inferences to make it work. The gross estate is $600,000; clear enough. The calculator asks for "qualified assets." Hmm. Maybe gross estate ($600,000) minus the $100,000 in cash (since executors don't get 5% of cash on hand), means $500,000 in qualified assets.

And then $0 in "estate income." Put the $25,000 of "expenses" in the "payments" field on the calculator, and $0 in "Business Mgmt." If I do that, I get $26,250 in executor fee; they're using 5% of the "qualified assets" plus 5% of the "expenses." That's wrong.

Obviously...beware of what you read on the internet.
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Old 11-22-2022, 09:58 AM   #46
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Can't you transfer the stocks in kind to just a few accounts, maybe just one? No realized gains if you transfer in kind.
Thanks for the suggestion. I'll look into that.
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Old 11-22-2022, 05:48 PM   #47
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I was the executor for my DM a few years ago. Her estate was a bit less than $500,000. I had 2 younger sisters who were also beneficiaries as well as myself. My DM had dementia the last few years and because I was retired and the sisters worked, they agreed to let me move her near me (2000 miles away).

They saw how difficult the whole process was for me and agreed long before she died that they would contribute something for my efforts after the estate settled. No agreement on the amount was predetermined. Since I was financially in better shape than they were, I wasn't overly concerned about any payment. It ended up each gave me about $2000 which was fine.
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Fees - estate executor
Old 11-22-2022, 06:13 PM   #48
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Fees - estate executor

In the past two years, I served as executor for my dear mother-in-laws estate as well as my dear mother's. Each had multiple siblings with various levels of involvement in care taking and other duties pre and post their passing. The estate attorneys said a normal fee would be in the range of 1 to 1.5% of estate value. In my situation, I decided not to take a fee for either estate because I felt it would help with the ability to settle things amicably and quickly. However, in the notification process to beneficiaries and heirs, I let them know that I would not be taking a fee unless settlement of the estate were contested and become overly complicated and lengthy. There is nothing wrong with receiving a fee as executor as it does take some time to gather all the info, coordinate and communicate. But in my case, I didn't want to.
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Old 11-22-2022, 06:22 PM   #49
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While I appreciate those who have done the work for free, I’m not one of them. I’ll spare you the details of why my situation is complicated. But I will say my sister has asked me to keep the estate’s trust open going on 4 years. While I took my full distribution a year after my mom’s passing, so I have no qualms about a small management fee, along with an add-on for the time spent filing taxes.

Best regards,
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Old 11-22-2022, 06:42 PM   #50
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If you mother is competent, she could weight in now and tell the others she feels you should get “x” for services and/or executor fee (if she agrees). My mother did that on a major business matter (selling the house) and that ended any discussion. I doubt I would mention it after she passes unless a sibling does. From you post, it seems your siblings are reasonable. You obviously have a right to direct expenses and a reasonable fee if you so choose (I did not). However, the estate appears a tad complex. I probably would have taken something for my time in your case.

During her last 7 years, I took care of anything mother needed. My sister lives 500 miles away. We had a credit card for mother’s needs (you might consider that) which only I used. So, I never had to be reimbursed. My sister could "analyze" me from the Statement! I considered myself fortunate to be close to mother those last years. Charging for services never crossed my mind.

I had promised mother I would not let estate matters get between us and I didn’t (although, it took interesting chats to get over a couple humps!).
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Old 11-22-2022, 08:56 PM   #51
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Sometimes the maximum fee is set by state law.

I will be the executor for my older sister's estate. I probably will not charge $$$ for my time but this will require a lot of travel and time for me. She is passing part of her estate to siblings and nieces but the bulk of it is destined for a missionary she supports in Africa. It is going to be a mess.
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Old 11-22-2022, 09:20 PM   #52
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My mom died last week and Iím in your position, but the estate is worth a lot less. The first thing I did was to have my brother figure out his costs for the month we were both doing a lot of support. I paid our expenses to her death. Then we kept up with expenses until the funeral and the clean up at her place was done.

From here on, Iíll recover actual expenses unless it starts eating up more time than I expect. I have moms lawyer updating deeds and handling that part.

In our case, my mom asked that I not tell my brother or other family members details of who gets what. There are a couple way too focused on making sure no one gets more.

Good luck and my sympathy for the loss.
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Old 11-25-2022, 01:15 PM   #53
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Thanks for the comment. Initially I didn't either but I've heard the argument for both sides and both my mother and siblings have mentioned the effort that has been required. My father left a number of things undone with their estate and my mother was not in the loop. Lot of trips to banks/medallion signatures and time on phone with brokerages & life insurance groups as well as trips to mail, etc.
Regardless of all the posters saying it is a labor of love, you are entitled to some compensation for such a complex and time consuming estate.
Do not feel guilty and I would ask my siblings what they think s fair and if they say nothing then tell them to take the job.
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Old 11-26-2022, 07:36 PM   #54
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AFAIK you can just not accept a bequest. So just leaves a problem for the executor.
I think that it is true that you can refuse a bequest of a timeshare but I would think that would force the executor to reserve some assets that might otherwise be distributed to be able to pay the timeshare fees to avoid any legal peril from the timeshare company.
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