Do Executors Get Paid? Compensation, Fees & What to Expect by State

One of the first questions people ask after being named executor is a surprisingly practical one: do executors actually get paid for this?

The answer, in most cases, is yes. Nearly every state in the U.S. allows executors to receive compensation for the work of settling an estate. The amount varies, sometimes it's a percentage of the estate's value, sometimes it's an hourly rate, and sometimes it's simply whatever the court deems "reasonable."

But the real question isn't whether you can get paid. It's how much, when, and whether it's worth the tax implications. This guide covers all of it.

The Short Answer: Yes, Executors Get Paid

Serving as executor of an estate is real work. You're managing finances, filing court documents, communicating with beneficiaries, paying debts, handling taxes, and navigating legal requirements, often for months or even years. The law recognizes this, and virtually every state provides a mechanism for executor compensation.

That said, there's an important distinction: you're entitled to compensation, but you're not required to accept it. Many executors who are also beneficiaries of the estate, a spouse or adult child, for example choose to waive their fee entirely. Others take a reduced amount. It's a personal decision, and neither choice is wrong.

Good to know: If the will specifies a compensation amount, that amount generally takes precedence over state law. Some wills state a flat fee, some reference "reasonable compensation," and others are silent on the topic entirely — in which case state law fills the gap.

How Much Does an Executor Get Paid?

Executor compensation varies significantly depending on where the estate is being probated. States generally use one of three approaches.

Approach 1: Percentage of the Estate

The most common method. The executor receives a percentage of the estate's total value (or sometimes a percentage of the transactions handled, money coming in and going out). The percentage often decreases as the estate value increases.

States using percentage-based fees include: California, New York, Florida, New Jersey, Arkansas, Iowa, Missouri, Montana, and Wyoming, among others.

Example — California's statutory fee schedule:

So for a $500,000 estate in California, the executor fee would be: $4,000 + $3,000 + $6,000 = $13,000.

Example — New York's statutory fee schedule:

For that same $500,000 estate in New York, the fee would be: $5,000 + $8,000 + $9,000 = $22,000.

As you can see, the same estate can yield very different executor fees depending on the state.

Approach 2: Reasonable Compensation

Many states don't set a specific percentage. Instead, they allow "reasonable compensation", and the court determines what's reasonable based on several factors:

• The size and complexity of the estate
• The time the executor spent on administration
• The executor's level of skill and expertise
• Whether any unusual problems arose (disputes, litigation, complex tax situations)
• Local custom and what other executors in the area typically receive

States using the reasonable compensation standard include: Texas, Pennsylvania, Ohio, Illinois, Massachusetts, Virginia, Michigan, Georgia, and many others.

In practice, reasonable compensation for a straightforward estate often falls in the range of 1% to 5% of the estate's value, but there's no fixed formula, and courts have wide discretion.

Approach 3: The Will Specifies the Fee

Some people include explicit compensation terms in their will. This might be a flat dollar amount ("I direct that my executor receive $10,000"), a percentage, or an hourly rate. When the will addresses compensation, those terms generally control, unless the executor petitions the court to adjust the amount because the actual work far exceeded expectations.

What Percentage Does the Executor of an Estate Get?

There's no single answer that applies nationally. But to give you a general benchmark, here's what executor fees typically look like across common estate sizes:

These are rough ranges, not guarantees. Your actual compensation will depend on your state's rules, the will's terms, the estate's complexity, and whether beneficiaries or the court raise any objections.

What does an executor of a will actually do? See the full scope of work

When Does the Executor Get Paid?

Timing varies, but executor fees are typically paid from the estate, not out of anyone's personal pocket. Here's the general sequence:

1. Administrative expenses are paid first (court filing fees, attorney fees, appraisal costs)
2. Creditor claims and debts are settled next
3. Executor compensation is paid after debts but before beneficiary distributions
4. Beneficiary distributions happen last

Most executors don't take their full fee until the estate is nearly closed, though some courts allow interim payments during a long administration. If you're managing an estate that will take 12+ months, it's reasonable to request periodic compensation rather than waiting until the very end.

Practical tip: Document every hour you spend and every task you complete. Even in percentage-based states, having a detailed record protects you if a beneficiary questions your fee. Tools like Percorso make this easier with built-in milestone tracking and audit logs that record your progress throughout the process.

Are Executor Fees Taxable?

Yes. Executor compensation is considered taxable income. How it's taxed depends on the circumstances:

As ordinary income on your personal return. Executor fees are reported as "other income" on your federal tax return (typically on Schedule C or directly on Form 1040, depending on how the IRS views the arrangement). You'll owe income tax at your regular rate.

Self-employment tax may apply. If you serve as executor as a regular trade or business, for example, you're a professional fiduciary who manages estates routinely, executor fees may also be subject to self-employment tax (an additional 15.3% for Social Security and Medicare). For a one-time family executor role, the IRS typically does not require self-employment tax, but the line isn't always clear. Consult a tax professional if you're unsure.

The estate gets a deduction. The flip side is that the estate can deduct the executor fee as an administrative expense, which reduces the estate's taxable income.

The waiver trade-off. This is where the decision to waive your fee gets interesting. If you waive executor compensation, that money stays in the estate and gets distributed to beneficiaries (including you, if you're one). Inherited assets are generally not subject to income tax. So by waiving a $15,000 fee, you might receive that same $15,000 as an inheritance tax-free.

The math doesn't always work out this neatly (especially for large estates with estate tax implications), so it's worth discussing with a CPA before making the decision.

Should You Take the Executor Fee?

This is a personal decision, and there's no right or wrong answer. Here are some factors that can help you decide.

Reasons to accept compensation

• The work is substantial. Settling an estate can consume hundreds of hours over a year or more. Your time has value, and the law recognizes that.
• You're not a beneficiary (or your inheritance is small). If you're doing all the work but receiving little or nothing from the estate itself, compensation is entirely appropriate.
• The estate is complex. Multiple properties, business interests, creditor disputes, family conflict, these all increase the workload significantly.
• Other beneficiaries agree. When everyone understands the scope of the work, fee acceptance rarely causes issues.

Reasons to waive compensation

• You're the primary beneficiary. If you're inheriting most of the estate anyway, waiving the fee can save you income tax while the same money comes to you tax-free as an inheritance.
• The estate is small. For a modest estate, the fee might not be worth the tax paperwork and potential family friction.
• Family dynamics are sensitive. In some families, accepting a fee, even one you're legally entitled to can create resentment among other beneficiaries.

A middle-ground approach

Some executors accept a reduced fee or only take compensation for specific complex tasks (like selling real property or resolving creditor disputes). This acknowledges the work without taking the full statutory amount.

What If There Are Co-Executors?

When two people are named co-executors, the compensation is typically split between them not doubled. So if the estate would generate a $20,000 executor fee, each co-executor would generally receive $10,000.

Some states handle this differently. A few allow full compensation for each co-executor if the court finds that both put in substantial work. Others cap the total compensation at what a single executor would receive, regardless of how many are serving.

If you're serving as co-executor, it's worth clarifying the fee arrangement early, ideally before any disputes arise.

How to Calculate Your Executor Fee

If your state uses a percentage-based system, the calculation is straightforward, apply the statutory percentages to the estate value. But if your state uses the "reasonable compensation" standard, here's a practical framework:

1. Track your time. Keep a log of every task: court visits, phone calls with financial institutions, document preparation, creditor negotiations, beneficiary communications, and administrative work. Note the date, task, and time spent.
2. Research local norms. Ask a probate attorney what executors in your area typically charge. Professional fiduciaries (corporate executors like bank trust departments) often charge 1–2% of the estate value annually, this can serve as a benchmark.
3. Factor in complexity. A straightforward estate with a bank account, a house, and three beneficiaries is very different from an estate with a business, rental properties, contested claims, and 12 beneficiaries across three states.
4. Document everything. The court can ask for justification of your fee at any time. A detailed record of your hours and accomplishments is your best protection.

Keeping this level of documentation might sound overwhelming on top of everything else, but it doesn't have to be. Estate management platforms like Percorso automatically track milestones, store documents, and maintain an audit log giving you a clear record of everything you've done, which is exactly what a court wants to see if your fee is ever questioned.

Frequently Asked Questions

The Bottom Line

Yes, executors get paid and in most cases, that compensation is well-earned. Settling an estate is a complex, time-consuming responsibility that carries real legal obligations and personal stress. Whether you ultimately accept the fee, waive it, or negotiate a middle ground, make sure you understand your options before the process begins.

Whatever you decide about compensation, the most important thing you can do as executor is stay organized and keep clear records. Detailed documentation protects you legally, justifies your fee if it's questioned, and most importantly, helps you move through the process as efficiently as possible so the family can find closure.

Percorso helps executors track every milestone, store critical documents, and keep family members informed all in one place. If you're managing an estate and want to stay organized from day one, start your free trial.