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Difference between revisions of "Introduction to Being an Executor"
From Clicklaw Wikibooks
Introduction to Being an Executor (view source)
Revision as of 20:59, 21 July 2015
, 20:59, 21 July 2015→Does an executor get paid?
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Any expenses the executor has while settling the estate are paid for out of the estate. Examples of expenses are photocopying, postage, and long-distance phone calls. | Any expenses the executor has while settling the estate are paid for out of the estate. Examples of expenses are photocopying, postage, and long-distance phone calls. | ||
Sometimes the | Sometimes the will states the executor’s fee. This is the maximum the executor can receive. If the will does not list any fee, the executor may take up to five percent of the gross value of the estate and five percent of the income. The amount depends on how much work is involved and whether the executor hires professional help or does it all him or herself. In cases where the executor continues to act over a long period, the executor may also receive an annual care and management fee of .4% of the estate. | ||
help or does it all him or herself. In cases where the executor continues to act over a long period, the executor may also receive an annual care and management fee of .4% of the estate. | |||
Sometimes the | Sometimes the will leaves the executor a special gift for doing the job. In this case, he or she will get an executor’s fee as well, but only if the Will says so. The executor may prefer to take a gift rather than a fee because a fee is taxable but the gift ie. jewelry, cash, or real estate given under the will is not. | ||
Often an executor does not accept a fee. This is common if the executor is a spouse, family member, or close friend. An executor who is also a beneficiary may apply for a fee, unless the | Often an executor does not accept a fee. This is common if the executor is a spouse, family member, or close friend. An executor who is also a beneficiary may apply for a fee, unless the will says that this cannot happen. If there is more than one executor, the fee is split, but not always equally. | ||
The executor applies for the fee when he or she prepares the accounts for the beneficiaries to approve. If the beneficiaries do not agree with the proposed executor fee, they can require the executor to show his or her accounts to a Registrar of the Court, who will set the fee. | The executor applies for the fee when he or she prepares the accounts for the beneficiaries to approve. If the beneficiaries do not agree with the proposed executor fee, they can require the executor to show his or her accounts to a Registrar of the Court, who will set the fee. | ||
