Executor Pay Rules Updated for October 2026

An Executor of an Estate (or of Will) is a person who was chosen to administer another person’s estate and affairs upon their passing. 

The Executor of Will is different from the Administrator of Will.  The Administrator of Will can be anyone who administers/manages the affairs of a deceased person. The Executor is a specific individual who was named to manage a person’s estate upon death.

The Executor should not be confused with the Trustee. A trustee is a person who administers a trust.

If you're thinking about naming an executor for your will it is important to remember the executor is entitled to compensation. And if you are considering becoming one, you should know an executor should be paid according to state laws.

Elayne’s mission is to support and deliver counsel in the process of loss. In this article we will learn about the basis of an executor's compensation, their responsibilities, and liabilities.

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Key Takeaways:

• Executor fees range from 2% to 10% of the probate estate value in most states, while some states set no fixed percentage.
• Executor compensation is taxable income, and bequests left in the will are not, which can affect whether an executor accepts a fee.
• The 2026 federal estate tax exemption is $15 million per individual, so most estates owe no federal estate tax.
• Digital assets, including cryptocurrency, are now part of the standard estate inventory, and some may be permanently inaccessible without private keys.

The Basis of Executor’s Pay

Understanding how executor’s compensation is determined

It’s very important to remember that the executor’s compensation, fees, and rates may change depending on the state you live in. 

The executor’s compensation is calculated according to the value of the probate estate. 

Depending on the state, the executor’s fees may start at 2% and go up to 10% of the estate value, according to this state-by-state executor pay guide. 

There are some states, like Alaska, Colorado, Delaware (among others) where there are no stipulated percentages and the executor's compensation is based on services provided, hourly rate, or determined by the court.

Other states, like California and Pennsylvania, may also apply an “Extraordinary Compensation” which is an additional amount at the discretion of the court for non exclusive services provided by the executor. 

Examples of non exclusive services are: 

• Selling, leasing, foreclosing, etc. of real and personal property, 

• Preparing tax returns,

• Securing loans to pay for estate debts,

• Extraordinary efforts to locate estate assets, and more. 

The California Rules of Court provide additional detail on executor compensation in that state.

The role of the will and state laws in defining compensation.

The Will is very important when defining executor’s compensation because the testator may have specified the executor’s fees on the Will. However, state laws can define how the executor will get paid.

Executor Responsibilities

Insight into the complexity and time commitment of managing an estate.

The duties of an executor are very important but also very complicated and time consuming.

Besides carrying out the wishes of the testator, an executor's duties include:

• Locating all possible copies of the will
• Opening bank accounts
• Converting assets to cash
• Closing accounts
• Filing inventories
• Identifying beneficiaries
• Collecting any amounts owed to the testator
• Contacting insurance companies and collecting any insurance policies
• Completing and submitting any documents and/or forms required to collect any pensions, saving plans, retirement incomes, and tax-free savings accounts owned by the testator
• Asserting debts
• In some cases, making the funeral and burial arrangements of the deceased

One of the most important responsibilities of an executor is the settlement of the estate. The responsibilities of the settlement of the estate includes:

• Identifying, valuing, and collecting assets of the estate, 

• Filing a petition with probate court,

• Maintaining the deceased property until it can be sold or distributed, 

• Securing and investment of the assets, 

• Payment off debts, 

• Filing the corresponding estate tax returns, 

• Settling claims, 

• Complete a thorough title search of all real property owned by the deceased concerning any possible mortgages, and/or agreements,  

• Confirming if there are any debts owed to or from the testator, 

• And closing the estate.

If the executor is not a legal professional they should seek legal advice before distributing assets and/or paying any debts; probate attorney fees vary by state and estate complexity. 

More detail on working with a legal professional is available in the article on What to Expect From a Probate Attorney.

You must know that some of these processes may require out-of-pocket expenses, such as postage, certified mail fees, or travel to the courthouse. In these cases and in accordance with state laws, an executor may be reimbursed for expenses.

• The 'second job' nature of an executor's duties.

Being an executor of estate is not easy at all and it comes with serious legal implications. The responsibilities are many and complicated, especially for someone who is not a legal professional. 

With probate estates, bank or insurance accounts, and financial matters, careful attention to detail is critical. Before agreeing to be an executor you must be certain that you have the time to fulfill the required responsibilities.

An executor is not personally responsible for paying off the debts of a deceased but he/she can be held responsible for any mistakes during the estate settlement process. Be sure to follow the procedures according to the state’s probate court and the state laws.

How Executors Notify Banks, the IRS, and Social Security

Once an executor is appointed, one of the first steps is notifying the agencies and institutions that held accounts or paid benefits to the deceased. Each agency has its own process.

Banks and financial institutions: The executor presents a certified copy of the death certificate and Letters Testamentary (the court document confirming executor authority) to each bank. The institution will freeze or restrict access to individual accounts, transfer joint accounts where applicable, and work with the executor to consolidate estate assets into a dedicated estate account.

The IRS: The executor is responsible for filing several returns, depending on the estate's circumstances:

• Form 1040: the deceased person's final individual income tax return for the year of death, due by the standard April 15 deadline (or October 15 with an extension).
• Form 1041: a separate estate income tax return required if the estate earns income during settlement (through interest, rent, or dividends).
• Form 706: the federal estate tax return, applicable only to large estates; the federal exemption threshold is high and most estates do not reach it.

The IRS also issues an Employer Identification Number (EIN) to the estate, which the executor uses to open the estate bank account and file any required returns.

Social Security: The Social Security Administration should be notified as soon as possible after the death. In most cases the funeral home handles this, but the executor should confirm. Any Social Security payments received after the date of death must be returned. Surviving spouses are often eligible for survivor benefits depending on age, work history, and other factors; contacting the SSA directly is the most reliable way to determine eligibility and initiate a claim.

Other agencies to notify include the deceased's pension administrator, the Department of Veterans Affairs (if applicable), life insurance carriers, and any state benefits programs. Keeping a running log of each notification (date contacted, representative name, confirmation number) makes the process easier to track and document for the probate court.

A Growing Responsibility: Digital Assets (2025-2026)

Digital assets are an expanding part of executor responsibilities. As of 2026, executors may increasingly need to locate and manage cryptocurrency holdings, online investment accounts, digital wallets, and even subscription-based income streams. None of these come with a paper trail.

Many states have now adopted or updated legislation based on the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which gives executors legal authority to access a deceased person's digital accounts after death. However, the process can still be complicated: platforms have their own policies, access often requires court documentation, and some assets (such as certain cryptocurrency holdings) may be permanently inaccessible without the decedent's private keys.

For executors taking on an estate today, accounting for digital assets is no longer optional. It is part of the standard inventory process, and courts in states such as California and Pennsylvania have begun recognizing the added complexity when reviewing requests for extraordinary compensation.

How Executors Handle Estate Debts and Creditor Notifications

Managing estate debts is one of the more consequential parts of the executor's role. Mistakes here can expose the executor to personal liability or result in the wrong parties being paid in the wrong order.

Notifying creditors: Most states require the executor to publish a notice to creditors in a local newspaper, typically once a week for two to four consecutive weeks, and to notify known creditors directly by mail. This notice sets a claims deadline, often three to six months from publication depending on state law. Creditors who do not file a claim within that window may lose the right to collect from the estate, though the exact consequences vary by jurisdiction.

Order of payment: Debts are not paid equally or immediately. Most states require executors to follow a priority order when paying claims. Funeral and burial expenses, administration costs, and taxes typically come first. General unsecured debts (credit cards, medical bills, personal loans) come later. Paying a lower-priority creditor before higher-priority ones is a common mistake that can make the executor personally responsible for the shortfall.

What executors should not do: Paying any debts before the claims period closes is risky. If the estate turns out to be insolvent (meaning debts exceed assets), premature payments can leave the executor liable. Executors are not personally responsible for the deceased's debts, but they can be held responsible for mismanaging the distribution of estate assets.

Disputed or unknown debts: If a creditor's claim seems questionable, the executor has the right to dispute it through the probate court. An estate attorney can help determine whether a claim is valid and whether it falls within the required filing window.

Executors who are not legal professionals are strongly encouraged to seek legal guidance before paying any estate debts, particularly when the estate has limited assets, multiple creditors, or outstanding tax obligations.

What an Executor Should Do in the First 30 Days

The first 30 days after a death involve more administrative steps than most executors expect, and the sequence matters. Some steps have hard deadlines; others simply become harder the longer they wait.

• Securing the original will. The original signed document (not a photocopy) needs to be located and stored safely. If the will is held by an attorney, they should be contacted immediately.
• Obtaining certified copies of the death certificate. At least 8-12 certified copies are typically needed from the funeral home or the official records office. Banks, insurers, courts, and government agencies each require their own original copy.
• Filing the will with the probate court. Most states require the will to be filed within a set period, often 30 days of the death. Filing opens the probate proceeding and leads to issuance of Letters Testamentary, the court document that gives the executor legal authority to act.
• Notifying Social Security. See the earlier section on notifying banks and agencies for details on the SSA notification process and payment return requirements.
• Notifying the IRS and obtaining an EIN for the estate. An Employer Identification Number (EIN) for the estate is obtained through IRS.gov; this is needed to open an estate bank account and file any required returns.
• Opening a dedicated estate bank account. All estate funds flow through this account. Estate assets should not be co-mingled with personal funds.
• Notifying financial institutions. As described in the section above, a certified death certificate and Letters Testamentary are presented to each bank, brokerage, and financial institution where the deceased held accounts.
• Securing physical property. Locks are changed, insurance coverage is maintained, and any real property is confirmed protected until it can be sold or distributed.
• Beginning the asset inventory. A list of all known assets is compiled, including bank accounts, investment accounts, real property, vehicles, digital assets, and personal property. This inventory becomes the foundation of the probate filing.
• Cancelling or redirecting recurring subscriptions and payments. The deceased's bank and credit card statements are reviewed for recurring charges, including streaming services, software subscriptions, insurance premiums, and membership fees. Each provider is contacted directly to cancel; many require a death certificate. Unresolved subscriptions continue to charge the estate until cancelled.

Not every estate moves through all of these steps in exactly this order, and some estates, particularly those with trusts or joint ownership, may bypass certain steps entirely. An estate attorney can help identify which steps apply and flag any state-specific deadlines.

Timing and Process of Executor Payment

Understanding when and how executors are compensated during the probate process

The state is who determines when the executor receives his/her compensation. In some states, the executor may receive periodic payments during the estate settlement process.

It must be taken into account that the executor's compensation comes out of the probate estate. Usually the executor’s compensation, commissions, and reimbursements are paid at the end of the estate settlement process.

California offers a concrete example. An executor there generally cannot pay themselves from estate funds without a court order. Statutory compensation is most often approved when the executor petitions for final distribution at the close of the estate, and the court can allow an advance on fees earlier in a long administration only through a petition and an order.

A typical probate timeline shows where payment falls:

• Will filed and Letters Testamentary issued: the executor's legal authority begins. No compensation is paid at this stage.
• Creditor claims period: often three to six months, depending on state law. Debts are paid in priority order, and the executor's out-of-pocket expenses are tracked.
• Inventory and accounting: assets are valued and every receipt and payment is documented for the court.
• Final accounting and petition for distribution: compensation and reimbursements are approved and paid, usually alongside distributions to beneficiaries.

In practice, executor compensation generally arrives near the close of probate, after claims are resolved and the final accounting is approved. Reimbursements for expenses follow the same record-keeping, so saved receipts and mileage logs speed up approval.

The Financial Realities of Executorship

Discussing the taxable nature of executor compensation.

Any compensation, fees, and/or hourly rate you receive as an executor of estate is considered taxable income and must be reported when filing your income taxes.

Most out of pocket expenses like, accountant’s fees, attorney’s fees, or any cost for the use of a service are deductible in the estate’s tax returns.

An executor may be reimbursed for travel expenses such as mileage, flights and/or car rentals. It is important to mention that mileage is typically reimbursed at a capped per-mile rate, such as the IRS standard mileage rate, which changes over time, and evidence of the reason for the travel expenses must be provided.

2026 Estate Tax Update: What Executors Should Know

One of the more consequential changes affecting estates settled in 2026 involves the federal estate tax exemption. The Tax Cuts and Jobs Act of 2017 had raised the exemption to historically high levels, but a built-in sunset provision was set to reduce it sharply at the start of 2026. That reduction did not take effect.

• Individual exemption (2026): $15 million per individual
• Married couples (with portability): $30 million combined
• Annual gift tax exclusion (2026): $19,000 per donee

For the overwhelming majority of estates, this change has no direct impact; most estates fall well below that threshold and owe no federal estate tax regardless. However, for executors managing larger estates, the change affects whether Form 706 must be filed and what tax liability, if any, the estate faces.

The annual gift tax exclusion also increased to $19,000 per donee for 2026. Executors who are also handling gift tax returns for the year of death should note this updated figure. State estate taxes operate separately and are not affected by the federal exemption change; states that impose their own estate tax maintain their own thresholds, which are often considerably lower.

When There Is No Will: How Estate Settlement Works Without One

When a person dies without a valid will, they are said to have died "intestate." There is no named executor in this situation. Instead, a court appoints an administrator, often a surviving spouse, adult child, or other close relative, to manage the estate.

The administrator's practical duties are similar to those of an executor: gathering assets, paying debts, filing tax returns, and distributing what remains. The key difference is that the distribution does not follow the deceased's personal wishes. It follows the intestate succession laws of the state where the person lived.

How intestate distribution typically works: Most states place surviving spouses and children first in the distribution order. If there is no spouse or children, assets pass to parents, then siblings, then more distant relatives. The exact rules vary considerably by state; some states give a surviving spouse the entire estate if there are no children, while others divide it between the spouse and the deceased's parents. If no relatives can be identified, assets may escheat to the state.

The probate process still applies. Dying without a will does not avoid probate; in most cases it makes the process longer and more complex, because the court must verify the administrator's appointment and confirm the distribution formula that applies. In New York, intestate estates are handled in Surrogate's Court under the Estates, Powers and Trusts Law (EPTL). Most other states have comparable court systems and statutes.

Some assets pass outside of intestate succession. Accounts with named beneficiaries, such as retirement accounts, life insurance policies, and payable-on-death bank accounts, pass directly to those beneficiaries regardless of whether a will exists. Jointly held property with right of survivorship transfers to the surviving owner automatically. These assets are not subject to the intestate distribution formula.

Families working through an intestate estate benefit from consulting a probate attorney early. The absence of a will removes the roadmap the deceased would otherwise have provided, and the court-supervised distribution process carries its own procedural requirements.

Final Thoughts

An executor of the estate is in charge of managing and finishing the affairs of someone who passed away, usually a loved one. 

Being an executor is time consuming, complicated, and may incur personal expenses. And it can be even more challenging if you are also grieving.

Even though the executor is entitled to compensation and many expenses can be reimbursed, mistakes or false information can create financial and legal liability.

Putting affairs in order is a step families can take at any time. More on how to approach this is covered in What Is Estate Planning? Your Complete Guide.

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This content is for informational purposes only and does not constitute legal, financial, medical, or tax advice. Laws and regulations vary by state and individual circumstances differ. Consult a licensed attorney, financial advisor, or other qualified professional for guidance specific to your situation.

FAQs

Do executors get paid?

Yes, the executors are entitled to payment. Either by services provided, hourly rate, or most commonly by specific percentages according to state laws.

Does an executor get paid before beneficiaries?

Once the estate settlement process is complete the executor is usually paid before the beneficiaries.

Where should an executor start when settling an estate?

The first steps are securing the original will, obtaining a certified copy of the death certificate (you'll need multiple copies, since most institutions require their own), and filing with the probate court to be formally appointed. From there, the executor opens a dedicated estate bank account, begins notifying financial institutions and agencies, and takes inventory of the estate's assets and debts. For spouses or family members settling an estate for the first time, working with a probate attorney early in the process helps avoid procedural errors that are difficult to correct later.

What platform or app helps executors organize estate paperwork and notify agencies?

Several services help executors organize estate documents and manage notifications. Elayne is a platform built for estate settlement. It helps executors search for accounts and assets, notifies financial institutions, and coordinates the administrative steps involved in settling an estate. Other tools include EstateExec (self-service executor software for tracking tasks and distributions), Everplans (a document storage and planning platform), and Trust & Will (an estate planning and settlement service). The right platform depends on the complexity of the estate and how much hands-on support the executor needs.

How do I get access to a deceased person's financial accounts if I'm the executor but not on the accounts?

The executor gains access through Letters Testamentary, the court-issued document that formally appoints the executor and authorizes them to act on behalf of the estate. To obtain Letters Testamentary, the executor files the will with the probate court and is formally appointed by a judge. Once issued, Letters Testamentary serve as legal proof of authority.

At each financial institution, the executor presents a certified copy of the death certificate and the original or certified Letters Testamentary. The institution will restrict access to individual accounts, transfer jointly held accounts where applicable, and work with the executor to move estate assets into a dedicated estate account. Most major banks have an estate services department that handles these requests. Bring multiple certified copies, because each institution typically retains its own.

Some institutions may also ask for a government-issued ID and the estate's EIN (Employer Identification Number), which is obtained from the IRS. The process varies by institution and by the size of the account; smaller accounts at credit unions may have different procedures than large brokerage accounts. If an institution is uncooperative or requires additional court documentation, a probate attorney can help work through the process.

How do I find out if my deceased parent had bank accounts I don't know about?

Several sources can surface unknown accounts. Tax returns from the past two to three years are the most reliable starting point. Form 1099-INT lists interest income from bank accounts, and Form 1099-DIV lists dividends from investment accounts. Bank and credit card statements reveal where money was regularly deposited or withdrawn. Mail, even if it has been redirected, often includes account statements and notices.

For accounts that have already gone dormant, each state maintains an unclaimed property registry. The National Association of Unclaimed Property Administrators (NAUPA) operates MissingMoney.com, which searches multiple state databases at once. The FDIC's BankFind tool can identify banks where the deceased held insured deposits if a specific institution is suspected but cannot be confirmed. State-specific portals, such as New Jersey's unclaimed property database, allow searches by name and are worth checking separately for any state where the deceased lived or worked.

Executors are entitled to request account records from financial institutions once Letters Testamentary are in hand. If a bank is identified but the account balance is unclear, the executor can present their court authorization and request a full account history.

What happens to a deceased person's recurring subscriptions, and how do I cancel them?

Recurring subscriptions, including streaming services, software, gym memberships, insurance premiums, and similar charges, continue billing until explicitly cancelled. They do not stop automatically when the account holder dies. The charges come out of whatever payment method is on file: a credit card or bank account that is now part of the estate.

To cancel, the executor reviews bank and credit card statements for any recurring charges, then contacts each provider directly. Most services require a written cancellation request and a copy of the death certificate. Major platforms, including Apple, Google, Amazon, and others, each have their own account closure or cancellation process for deceased users; these are typically found under account settings or customer support. The FTC's guidance on cancel or transfer subscriptions after a death includes steps for stopping recurring charges.

Charges that occur after the date of death can often be refunded, especially if the provider is notified promptly. Records of every cancellation request, including dates and confirmation numbers, are useful if charges need to be disputed with the bank or credit card issuer.

Should I take an executor fee?

Considering that an executor’s fee comes from the probate estate (meaning the inheritance), taking an executor’s fee will probably reduce the amount bequeathed to the other beneficiaries. 

Another thing to remember if you are an executor and a beneficiary is that the executor’s compensation is taxable, while any bequest left in the Will is tax free.

An executor may feel pressured to waive his/her compensation to avoid tension amongst family members. Still, it is important to remember that being an executor is a demanding and very challenging job. And while it's always good to try to "keep the peace," the executor doesn't have to agree to take on this enormous responsibility for free.