Texas Proud
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Fair price for executing an estate
- Thread starter lem1955
- Start date
Pluperfect
Recycles dryer sheets
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Nope.
Winemaker
Thinks s/he gets paid by the post
Yep.
You mean that is too much or too little?
Texas Proud
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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OK, 'financial transactions'... which mostly is the value of the estate... I would bet that 99% is the value of the estate...
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.
https://www.clearestate.com/en-us/blog/executor-fees-texas
It does say that you cannot include life insurance but IMO that is not part of the Estate anyway... as most go to beneficiaries...
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.
https://www.clearestate.com/en-us/blog/executor-fees-texas
It does say that you cannot include life insurance but IMO that is not part of the Estate anyway... as most go to beneficiaries...
Pluperfect
Recycles dryer sheets
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I think "financial transactions" isn't a very good term; the statute says the commission is 5% of amounts the executor "actually receives or pays out in cash." Like deposits into the estate's checking account and checks written on the estate's checking account.
But what do you mean "99% is the value of the estate"? That in an estate of $100,000, financial transactions will be $99,000 or thereabouts? There's no reason for that to be the case.
This is inaccurately worded (aside from grammatically problematic). The "up to $12,500" is the statutory maximum, which is a limit on an executor's commission and has nothing to do the calculation of the commission. There are plenty of scenarios where administering a $250,000 estate would result in an executor commission calculated according to the statute of nowhere near $12,500, even if the executor did his duties correctly and honestly.
My reason for pointing out that the website linked to upthread was wrong on Texas was to illustrate the hazards of linking to sites if you don't check their accuracy, or of even believing what they say, actually. Anybody can slap up a website that says anything--and in this case it said: "Executor compensation in Texas is typically 5%."
A lot of people would assume it meant 5% of the value of the estate, but they'd be wrong. And it would be equally wrong to think that Texas's structure for calculating executors' commissions would be just a different way of reaching a result of 5% of the value of the estate.
In Texas, the commission can differ dramatically depending on the type of assets in the estate and how those assets are distributed, and the only time the value of the estate is even considered is when the commission based on cash flow exceeds it.
BubbaChris
Recycles dryer sheets
I will speak up against the bias presented here, to take no fee.
My sister asked for a stipend to support our mother when she moved her 2 doors away (after our father passed). I agreed and it established a pattern which continued when I moved her to assisted living near me. The amount varied by level of support given to mom.
It was natural to continue in an adjusted form when mom died. I took more in the first year than I do now, but the work continues and isn’t always easy. My payment as executor is deductible for the trust, which is taxed at a high rate.
Based on my experience, we set a defined amount of $35K, plus expenses, in our trust documents. This will be paid to our nephew since we don’t have any children.
Best regards,
Chris
My sister asked for a stipend to support our mother when she moved her 2 doors away (after our father passed). I agreed and it established a pattern which continued when I moved her to assisted living near me. The amount varied by level of support given to mom.
It was natural to continue in an adjusted form when mom died. I took more in the first year than I do now, but the work continues and isn’t always easy. My payment as executor is deductible for the trust, which is taxed at a high rate.
Based on my experience, we set a defined amount of $35K, plus expenses, in our trust documents. This will be paid to our nephew since we don’t have any children.
Best regards,
Chris
Allow me to ask a variation- I am the executor for an in law. (They have no kids, estate will be divided among at least 10 siblings). They have a house packed with rare books and expensive art - they were in that business so a lot is very valuable - total estate in the low millions (a guess). They have done no planning so this is going to be a mess, and will require appraisals and potentially auctions. And it is 2 hours away. Anyone see a problem with me taking the “standard” executor fee for that city? (I am working on them to get their affairs in order…thankfully they are healthy)
Alternative viewpoint
My condolences to the Op and all who have recently lost a loved one.
To all, I suggest considering the following pripr to deciding to accept any compensation for serving as an Executor.
While one's parents were alive, did siblings contribute to the plethora of activities and obligations in a regular and equal fashion?
Responsibilities may have included regular traditional shopping ( not internet shopping by armchair), active involvement in scheduling appointments, dirrct participation in doctors visits, regular oversight of finances, regular in-person visitation, responding in person to unexpected situations including but not limited to medical emergencies; sitting bedside for one, several or many days in an emergency room (numerous cycles of this activity as needed); staying bedside in inpatient rooms, and rehab hospitals.
I am one of three brothers. One brother and I have disproportionately provided MOST of the support listed above (we live minutes from my 90+ year old mother's senior facility). I handled 90% of the closing of Mom's coop, including packing, cleaning, overseeing repairs neglected for 25 years, the real estate sale, + the transition to Moms new apartment at the Senior facility (literally all of the set up).
In contrast, my oldest brother visits approximately 3 times a year... for two - three days. With each of the last five emergencies, our eldest brother will fly up for ~30 hours. Noteworthy, my oldest brother is the Executor of our Mother's estate (no options offered to me or my other brother to serve as the Executor or co- Executor).
Unequivocally, and uncontested by anyone (including our oldest brother), my brother who lives locally and I have contributed disproportionately for decades; we've given immeasurable time, missed countless family vacations and our own children's once in a lifetime events to be there for Mom. Seemingly, we are literally on call 24x7x nearly all year.
I routinely handle the minutiae of bills, banking, followup on the plethora of insurance bills, I facilitate gifting throughout the year to grandchildren, great grandchildren of our oldest brother, and others.
Importantly, my brother who lives locally handles most non-emergent medical related needs- there are many of these activities.
Regardless of the residual amount left in the estate when Mom passes, there could never be sufficient money to appropriately recognize the disproportionate efforts put forth by the two of us who live locally. To be clear we do what we do out of love, respect and because " it is the right thing to do."
Our oldest brother has pledged that other than reasonable actual expenses, he does not plan on accepting 'Executor compensation.'
I hope every Executor reflects deeply in regards to what might constitute disproportionate support provided prior to a loved one's death.
Where there is a pattern of unambiguous disproportionate care and support... in my estimation, an Executor should decline compensation...AND, he/she should strongly consider using their share of an inheritance to bestow meaningful material gifts to siblings who gave selflessly.
Apologies if I offered anyone with this post.
Again, my condolences.
My condolences to the Op and all who have recently lost a loved one.
To all, I suggest considering the following pripr to deciding to accept any compensation for serving as an Executor.
While one's parents were alive, did siblings contribute to the plethora of activities and obligations in a regular and equal fashion?
Responsibilities may have included regular traditional shopping ( not internet shopping by armchair), active involvement in scheduling appointments, dirrct participation in doctors visits, regular oversight of finances, regular in-person visitation, responding in person to unexpected situations including but not limited to medical emergencies; sitting bedside for one, several or many days in an emergency room (numerous cycles of this activity as needed); staying bedside in inpatient rooms, and rehab hospitals.
I am one of three brothers. One brother and I have disproportionately provided MOST of the support listed above (we live minutes from my 90+ year old mother's senior facility). I handled 90% of the closing of Mom's coop, including packing, cleaning, overseeing repairs neglected for 25 years, the real estate sale, + the transition to Moms new apartment at the Senior facility (literally all of the set up).
In contrast, my oldest brother visits approximately 3 times a year... for two - three days. With each of the last five emergencies, our eldest brother will fly up for ~30 hours. Noteworthy, my oldest brother is the Executor of our Mother's estate (no options offered to me or my other brother to serve as the Executor or co- Executor).
Unequivocally, and uncontested by anyone (including our oldest brother), my brother who lives locally and I have contributed disproportionately for decades; we've given immeasurable time, missed countless family vacations and our own children's once in a lifetime events to be there for Mom. Seemingly, we are literally on call 24x7x nearly all year.
I routinely handle the minutiae of bills, banking, followup on the plethora of insurance bills, I facilitate gifting throughout the year to grandchildren, great grandchildren of our oldest brother, and others.
Importantly, my brother who lives locally handles most non-emergent medical related needs- there are many of these activities.
Regardless of the residual amount left in the estate when Mom passes, there could never be sufficient money to appropriately recognize the disproportionate efforts put forth by the two of us who live locally. To be clear we do what we do out of love, respect and because " it is the right thing to do."
Our oldest brother has pledged that other than reasonable actual expenses, he does not plan on accepting 'Executor compensation.'
I hope every Executor reflects deeply in regards to what might constitute disproportionate support provided prior to a loved one's death.
Where there is a pattern of unambiguous disproportionate care and support... in my estimation, an Executor should decline compensation...AND, he/she should strongly consider using their share of an inheritance to bestow meaningful material gifts to siblings who gave selflessly.
Apologies if I offered anyone with this post.
Again, my condolences.
My husband has been an executor for three estates. With permission from siblings, we took a six year old Honda Civic as one payment. We took cash as payment from another and nothing from the third. All were dependent on the amount of work.
When my parents die, I'm taking payment as my brother has been non existent over the past 10 to 15 years except for a few visits and weekly emails or phone calls. My parents could be around for another ten years and I'm sure my husband and I are going to be doing everything and helping them make all the decisions. As you can probably tell, I'm a little resentful and the heavy lifting hasn't even started.
When my parents die, I'm taking payment as my brother has been non existent over the past 10 to 15 years except for a few visits and weekly emails or phone calls. My parents could be around for another ten years and I'm sure my husband and I are going to be doing everything and helping them make all the decisions. As you can probably tell, I'm a little resentful and the heavy lifting hasn't even started.
Winemaker
Thinks s/he gets paid by the post
View attachment executor-fees-1.pdf
This is the "accepted" fee chart for an executor in the commonweath.
This is the "accepted" fee chart for an executor in the commonweath.
Natacastan
Confused about dryer sheets
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Sorry to hear about the loss of your parent. It's never easy losing someone, especially a parent. My condolences to you and your sister.
That was interesting. I still need to do my own estate planning and will keep that in mind.
My executor will not be family or a beneficiary so I want them fairly compensated but not so much they have a motive to knock me off early!
