Does a Will Executor Get Paid? What You Need to Know

Key Takeaways:

• Executors are usually entitled to reasonable payment, even if the will doesn’t specify a fee.
• Payment amounts vary by state and can depend on the size and complexity of the estate.
• Executors should keep clear records and may need court approval for payment.

Many people wonder: does a will executor get paid for their time and work? The short answer—yes, in most cases.

Whether you’re writing a will or serving as an executor, understanding the rules around compensation is essential. Acting as an executor often requires months of effort, legal paperwork, and careful financial management. Knowing how a will executor gets paid, what’s fair, and what the law says will help avoid disputes and misunderstandings.

This guide explains when an executor is entitled to payment, how much they might receive, and what factors influence the process.

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What Does an Executor Do?

The executor of a will, sometimes called a personal representative, carries out the instructions left in the will and oversees the probate process. This is no small job.

An executor’s responsibilities often include:

• Gathering assets such as bank accounts, property, and investments.
• Paying debts owed by the estate, including credit cards, loans, and final bills.
• Filing taxes for the deceased and the estate.
• Distributing property to heirs as directed in the will.

In many cases, an executor will also manage months of paperwork, legal filings, and financial oversight. Depending on the estate’s complexity, it can feel like running a small business—on top of navigating family dynamics.

Can a Will Executor Get Paid?

In most states, executor fees are not only allowed, they’re expected. Even if the will doesn’t mention compensation, the law typically entitles the executor to reasonable payment for their work.

• If the will specifies a fee: That amount usually stands, unless someone contests it in court.
• If the will is silent: State laws or probate court rules determine payment, often using a set percentage or an hourly rate.
• If beneficiaries disagree: The court can step in to decide what’s fair.

In short, do executors get paid from the estate? Yes. Executor compensation is usually paid out of the estate’s assets before heirs receive their inheritance.

Common Ways Executors Are Paid

The method of payment can vary widely:

1. Percentage of the estate’s value – Common in states like California and New York, this formula pays executors a set percentage based on the estate’s total worth.
2. Flat fee or hourly rate – Often used when the executor is a professional, such as an attorney or accountant.
3. Court-determined fee – If no agreement exists, the probate court may decide what is reasonable and customary for the work performed.

For large or complicated estates, payment can add up significantly, which is why state laws and court oversight aim to keep fees fair.

When Executors Choose to Waive Their Fee

Not every executor accepts payment.

• Family members, such as adult children, may waive their fee as a gesture of love or to maintain family harmony.
• Tax considerations can also influence the choice. Since executor fees are taxable income, some prefer to receive an inheritance instead, which is generally not taxable.
• To prevent confusion later, executors who waive payment should document the decision in writing and keep it with the estate’s records.

Tax Considerations for Executor Compensation

When it comes to taxes, executor fees and inheritances are treated very differently.

• Executor fees are taxable income and must be reported to the IRS.
• They may be subject to federal and state income taxes.
• Inheritances, on the other hand, are usually not considered taxable income at the federal level.

Executors should consult a tax advisor before deciding whether to take payment, especially if they are also a beneficiary.

Handling Disputes Over Executor Fees

Even when payment is legal and justified, disputes can arise.

• Beneficiaries may object if they believe the fee is too high or not supported by the work done.
• Courts can reduce or increase fees based on evidence, complexity, and time spent.
• Keeping detailed records—including hours worked, expenses paid, and tasks completed—helps defend against challenges.

Clear communication with beneficiaries early in the process often prevents misunderstandings.

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FAQs

Q1: Can a family member who is an executor still get paid?
Yes. Being related to the deceased doesn’t disqualify you from payment unless the will specifically says otherwise.

Q2: What if the will says nothing about payment?
State laws usually provide a default payment structure or allow the court to determine what’s reasonable.

Q3: Are executor fees paid before or after beneficiaries receive their inheritance?
Executor fees are paid from the estate before assets are distributed to beneficiaries.

Q4: Do executor fees need court approval?
In many states, yes—especially if beneficiaries contest the amount. Some states require approval regardless of disputes.

Executor compensation is not only legal but often necessary given the significant time and responsibility involved. If you’re writing a will, be clear about your intentions regarding payment. If you’re serving as an executor, know your rights, understand the laws in your state, and keep detailed records.

When in doubt, seek legal or financial advice to ensure you handle both the work and the payment process properly. Being informed helps protect you—and the estate—from costly disputes.

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