Compensation for Executors, Administrators, and Trustees
Fiduciaries are entitled to payment for their services. Compensation depends on whether the governing document (Will or Trust) specifies payment terms. If no terms are stated, New York law determines compensation based on estate size and responsibilities undertaken.
Executors and administrators receive commissions based on the value of assets they manage and distribute. (SCPA) Section 2307, the compensation structure is:
5% on the first $100,000
4% on the next $200,000
3% on the next $700,000
2.5% on the next $4,000,000
2% on amounts exceeding $5,000,000
For example, an executor handling an estate valued at $1,000,000 would receive $34,000 in commissions.
However, commissions do not apply to property specifically bequeathed in the Will or to September 11th victim compensation fund awards.
Trustees are entitled to two types of commissions:
Annual commissions:
$10.50 per $1,000 on the first $400,000
$4.50 per $1,000 on the next $600,000
$3.00 per $1,000 on additional amounts
Payout commissions:
1% of the principal distributed
Trustees must establish a consistent schedule for collecting commissions, whether annually or at another chosen interval. One-third of commissions come from trust income, and two-thirds from the principal.
Reimbursement for Executor and Administrator Expenses
1. Funeral and Burial Costs
2. Probate and Court Fees
3. Legal and Accounting Fees
4. Outstanding Debts
5. Taxes
6. Property Maintenance
7. Administrative and Travel Expenses
8. Business Expenses
9. Executor Compensation
Limitations and Compliance
Executors must personally oversee estate matters and cannot delegate their core duties. All reimbursements must be well-documented, with receipts and accounting records to support
claims. Court approval may be necessary for certain expenses to avoid disputes with beneficiaries.
Properly handling estate administration and financial responsibilities ensures compliance with legal standards. Consulting an attorney can help fiduciaries navigate compensation and reimbursement rules whileprotecting the interests of the estate and its beneficiaries.
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
For more information on this and other topics, please contact Kevin via any of the channels listed below:
📧 kevin@kmckernan.com | 📞 718-317-5007