Should Executor Accept Compensation?
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- Опубліковано 1 лип 2024
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Every last will and testament has an executor. The executor's responsibilities can be daunting: deal with all of the frozen financial accounts and creditors of the deceased; handle all of the inquiries from heirs and interested parties; work closely with the attorney to make sure all court pleadings are accurate and timely; and generally oversee all aspects of the estate settlement process.
I most estate settlements involving probate, a question arises whether the executor will accept or waive the compensation that an executor is entitled to. Statutory compensation can and does vary from state to state.
Some executors waive the compensation to which they are entitled. Other willingly accept that compensation.
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Paul Rabalais
Estate Planning Attorney
www.RabalaisEstatePlanning.com
Phone: (225) 329-2450
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Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
I am still in the thick of my deceased father's estate. I was hesitant at first to think about a fee, coming off the top. But now, I have worked, took time off from my job, phone calls like crazy, it is unreal the amount of work I have had, and my parents lived a simple life. No second home, no time share, no furs or expensive jewelry. But I will certainly take whatever fee I am due. Off the top, and I do not care what my two siblings think or if they like it. I have sacrified, this has consumed many of my entire days, and I'm taking the fee. All they want is their share at the end, they do not help, even though I have asked. If they had been more helpful, if we had done all this together and as a family, maybe I wouldn't consider taking the money. But this turned out to be a lot more work than I ever knew, I felt honored at first but not now, I'm exhausted. And my two siblings will still get their third. So yea I'm taking the fee. Thanks for the information.
Nothing requires you to take the whole fee. You can calculate a fair amount and discuss it with your siblings.
if your charging over 100,000 as a fee , its called robbery
@@moonshine3657 charging? it however is calculated by the attorney based on the value of the assets and is protected by law. You can either accept it or deny it. You are not a crook.
Because of love, my wife waived an executor fee from her parent's estate. In Canada, that fee is up to a ceiling of 5% of estate. Admirable, yes, but the duties were numerous and very tedious. It was almost two years before a clearance certificate was received by the government. Judging the response from siblings, that decision of taking no compensation has had some regret. Once the money is in the siblings account, they can turn and get ugly. My advice? Take it. Get paid for the numerous and tedious jobs. Let the siblings squabble, it is the law.
Yes, be compensated
yes, take the money up front, do not feel " honored " and do all the work, then you will regret not taking the fee
I was executor for my parents estate. We had zero arguments. The attorney who i worked with pointed out that if there was agreement on property I could take in lieu of cash payment, it would not be taxed. Best advice ever. Worked out great.
I am currently in a "no than yes" scenario as an executor of my fathers estate. My siblings have been disputing, fighting with each other and disrespectful to me overall all. They have no clue on how much time I've had to invest in closing this estate. Originally, I was not going to accept any estate compensation fee as I felt it was my duty to my late father, but with the backlash I've received I have just notified them that I will take the fee if they don't start cooperating with each other and me. I put the ball in their court and told them I reserve the right to split the fee among only cooperating siblings. It's amazing how when you add up the fee and when they determine how much they could be missing out on if they don't start playing nice the feuding magically disappears. Good luck to all executors- I never thought my siblings could be so cruel and selfish but hopefully this tactic will shut them down-at least through the closing of the estate.
I'm approaching no then yes for all the reasons you mentioned. I never wanted compensation because I wanted to do "the right thing" and be considerate of everyone. I wanted my husband to also have a chance to reunite with his children. Be very careful, people, take some sort of a fee or do what @MrOldrock1 did with his family. Being executor is NOT A FUN OR EMPOWERING experience.
If you feel your estate attorney is not providing you with guidance you need, walk out the door. Your estate attorney should LISTEN to your needs, concerns, desires and challenges, not minimize them. YOU are the expert on your life, not your attorney. The attorney should work with you and suggest particular edits.
I know for myself, I'm either leaving everything to a few people and charities. My greatest desire is to EASE THE BURDEN on my executor. If anyone starts backstabbing, challenging, or undermining my chosen executor's authority, the heirs' inheritance gets cut by a certain percentage. If it happens again, the inheritance is cancelled out for anyone involved in the chaos and harassment. Your executor will then have more of a leg to stand on when things go south.
Being an executor is a thankless job! Take the fee!
Being an executor of my mothers estate, it was lots of work. Spent many hours working on the estate. I was between jobs at the time, but made multible trips to the bank and many hours on the phone. My sister on the other hand did nothing. and when asked to get a guarantee signature refused to do even that. Trust me take the fee. You earned it as executor.
Absolutely right
That’s exactly what happened to me. It was a lot of work and I did not have offers to help. I spent the whole summer trying to settle the estate. I didn’t get a vacation like they did but that’s OK. I was happy to do what my parents asked me to do and I did deserve to be compensated for it. They quit talking to me though because they couldn’t control it. It’s very sad but I don’t want to be controlled.
Then why don't people just refuse being executor and resign and don't accept it.
I don't understand They take it and then they complain.
@@CowardsAbuse Because sometimes there is no one else who can do it, or trusted to be an executor. Its a big responsibility handling hundreds if not millions of dollars of someone else estate. If your a trusted person and the person had confidence in you to handle the job in a ethical and professional manor then you need to step up and do your best to fulfill their last wishes. In my case we are the only surviving relatives. And in my opinion I was the only one educated enough to handle the responsibility. All other relatives alive barely had HS educations and never had more than a thousand dollars in the bank. To give the responsibility to handle millions of dollars out is asking for trouble.
Agree! For me it’s a trust and I’m the trustee since my mom has dementia. My brothers are more than willing for me to do all the work. I realized early the only way I would not be angered and bitter at the end was to get compensation. I keep detailed records of time spent and what I was doing. I charge $100/hr. It was a rate suggested by the attorney. I think it’s fair because there’s a lot of planning and thought that happens outside of billable hours. I keep a clear boundary between daughter duties and trust business.
I was named Executor for my parents will, but did not have time to do it justice. So I handed it off to a younger sister who did an exemplary job. 10 kids involved here and not one argument. My folks did a great job of raising adults.
I think we paid her 15k, which was perhaps only 1% of the estate. She earned $100/hr.
Since I am going to live to 120 years, I put my share into an irrevocable trust that dishes out income to my 3 kids so they can enjoy some inheritance while they have some youth. I mean, they will be nearly 100 years old by the time I cack.
If only my family were like yours.
Although the youngest, it was always known that I would be the successor trustee of my father's trust and then the executor of the estate because I had the most knowledge and experience in financial matters. I do not remember any discussion about executor fees. Originally, I did not think of taking more than my normal share of the estate as an heir. Then, I started to realize all the extra work that the family expected of me. Not only did I spend time as one of the heirs to separate all Dad's (Mom already predeceased him) personal belongings and other things, I spent hours on the computer and running errands regarding the financial matters. I had already retired so I did not miss work and we all lived within a few miles of Dad, but it was a lot of extra time I spent over what the others spent. I decided to give myself a little extra to pay for mainly extra expenses plus something for my time. The extra I took was probably less than 1% of the estate. Since I was expected to do numerous things in addition to what everybody else was doing, I felt I deserved giving myself a bonus.
When I became the admistrator for my mother's estate, in addition to selling her home, I found that my brother stole over $5000 from her account and didn't pay any of the $8000 in bills. It's taken me a year to straighten everything out. It took me 6 trips to Maryland just to get an estate account established. I've had to deal with utilities and every creditor she had. My brothers attitude has been one of not caring our assisting. Also, I live in Pennsylvania and my mom lived in Las Vegas so most everything has been done long distance. I did take the executor fee, I'd had it with the situation and am very comfortable with denying my brother another sum from the estate.
My sister did that with our father's car. Apparently it wasn't stealing though. She called it an 'allocation'.
@@rogerpattube I call it theft or grand larceny
My mother in law was executor for her lifelong friend. The friend and her husband were childless and my mother in law had to deal with all of the relatives who wanted to get their hands on the many valuable personal items and furnishings. My mother in law was left the house as compensation. Even with the house, she said she would never do it again.
At least the executor doesn’t have to decide to take the fee until right before the estate is closed out. As the only one of 4 siblings who had the finances to pay out of pocket for 1. the funeral, 2. estate lawyer fees, 3. utilities/bills until an estate account could be opened months after dad died, I think my dad would’ve wanted me to earn something extra for being so responsible in the first place.
I took care of my great aunt fir 3.5 years she then passed on, I was not the executor of the will my Uncle and a nephew of hers was. One of them signed off to leave the other one. It was the no then yes.....they said they did not want anything but 17 people all getting a share became work. Not the same work of running to the hospital when she fell at 2am many times but still work. The one that became executor then took $58,000 in fees. I did not take anything for the 3 plus years and many trips to the other state to move her, even paying for the court fees to take care of her. But yes they are entitled to the fee, money makes people go crazy!
1) Assume the workload and problems are going to be 10x more than you thought
2) Assume no matter how thorough or fair you are that there’s going to be conflict among heirs
3) Assume that whatever your share is that it’s going to be less than that.
Now make your decision
The job of an executor is daunting and they earn that compensation.
In our case, my husband's sister was the executor of my Mother-in-Law's will, however at the time of my MIL's death, my sister-in-law had already been diagnosed with a terminal illness and was unable to serve as executor. She declined the executor's fee and her daughter our niece) volunteered to do the executor's job in her mother's place. It was a HUGE undertaking and it was long and grueling. This young woman had a full-time job, had a newborn, and was also busy taking part in her mother's caregiving.
After the estate was settled, several of the heirs simply gave her the equivalent of the executor's fee as a thank you gift. Not all the heirs participated, but a few of us did. My guess is that she actually should have earned even more that was given to her in the end. I often wonder if she knew what she was getting into, would she have volunteered her time for free? No one should ever turn down an executor's fee because that job is far more involved than people realize.
I agree! So glad you posted your comment here.
OMG! The woman should be ‘sainted’ by the family. With lots of pressure from one of my brothers, who had a real estate license, I sold two properties as a For Sale By Owner and it took three months to sell the properties. So, I was basically a realtor that would be getting almost nothing, compared to an actual realtor getting 6%. TAKE THE EXECUTOR FEE!!! If for no other reason than to dissuade anyone else from having you be executor in the future.
I was executor of my Father’s estate. Originally I was not going to take the Executor fee. I have a brother and sister. My sister became very combative and tried to fight me on every decision I made.She got her own lawyer, of which she got nothing extra except whatever they charged her...lol The court found I had done everything perfectly. Kept every receipt, logged all outgoing funds, etc. She drug out the estate for 2 years where it could have been finished in 6 months. She started disappearing and not helping to clean out the home and get it ready for sale. She was too busy shopping at the peddlers mall. So I started logging my hours. My brother had a full time job and helped me along with his wife on painting, cleaning out home and garage, etc. on weekends and nights. I had a young child and didn’t work. So I did everything. Cleaned all the rooms, painted, ended ongoing bills like phone, cable, etc. Had repairs done. When my sister continued to be a huge Ass I decided to be compensated for my work. I put over 400 hours in everything I did. I made sure to log everything. From my executors fee I gave Uncle Sam his portion and the rest I divided for my son and niece for college, so really I never took anything personally. I never wanted to take anything at all for the fee but I also wasn’t gonna be pushed around and treated like crap. Her words when we were painting before she got a lawyer, “I’m just the hired help” My answer was, we all are going to get something from this estate. We all should do the work. She just wanted to sell home as is and it needed work. She didn’t like the realtor because he was a friend of the family?! Then she just disappeared...That was my last straw, and at the time she wasn’t working either, but didn’t have time to help.
After her and her husband divorced I came to find out she wanted half the estate and my brother and I would get the other half. She was so deranged.
Wow. Your sister sounds like my older sister. I sent out an email one morning a few months after my fathers passing when I was formally named as executor by the court where I suggested a time table on when to be working on the house, proposed real estate agent, and other necessary tasks. She pushed back on the proposed agent and said she hated her. I asked why and she said "I don't have to explain anything to you." Turns out my sister was jealous of the agent because the agent happens to be successful because she built her own agency and my sister blew all her money she received over the years from 2 former husbands (see pattern here?) Also, even though his will said I only had to send out expenditure statements annually, I decided to do it monthly so as to be transparent. She threatened to sue me if I didn't give her the password to the estate account so she could look at it whenever she wanted to. Also over the years when he was alive, he asked me to be to handle his bank accounts in terms of keeping up with balances, transfers when he wanted them etc. because he wasn't very computer literate. After his death my sister accused me of embezzlement over the years. We also had a small vacant lot and I proposed a deadline on whether or not she wanted to buy it from the estate minus her interest in it and got push back on the decision date. I finally had to have my lawyer send her a certified letter making her make a decision and because of that she said she'd never speak to me again. Effing right I'm going to take a big ole fee when this is completed, and had I had cooperation from her and my other siblings I wouldn't have taken a dime. To all the executors that have cooperating siblings and beneficiaries, congrats. You don't know how good you got it.
It's the most thankless job on the planet - Yes, pay yourself
I totally agree
My sister is my father's executor. She's currently attempting to pay herself with not only taking a fee, but also snagging three valuable rings of his and not paying for them, along with claiming expenses (airline tickets, car rentals and AirBNB costs for coming from out of town to attend his funeral...
Yep. Had my own Mother move to sue the estate, to force the sale of the home that her Brother (my Uncle) had lived in all his life.
To compound things, he's autistic and has been highly functional most of his life but he has always been easily reduced to tears in frustration by verbal attacks from his sister.
She hurt him and my Grandparents over the years so much that she was estranged from them for the majority of the years of her life.
Because of this suit, my Uncle's frail health broke, and he has had several TIA's (Trans-ischemic attacks), which has made my mother rattle her sabre claiming victory, and justification for her actions against him. She had 4 boys by three different men, of which, I am the oldest. As a stepchild and unwanted offspring, each of us have experienced physical and emotional abuse from our different drunks and various violent bastards forced into our lives.
Rest assured, for ALL the various reasons you are chosen to do the job, you deserve the compensation.
I am paying myself. My mother gave her engagement ring from my father to my daughter. Grrrrr.
Take the money, you will earn it. I did my fathers and there was no family conflict. I kept the sibling in the loop on everything so she knew what was there and when she would get it. No house to sell, but some accts that had more work to do than I expected and I had to chase NY Life for a year to get them to pay off the life insurance. Pro tip. If you parents took a life ins policy that was attached to their mortgage on the home the bought 50 years ago, get them to cash it in. That bank has been bought and sold 300 times and you will have to figure out who has the pay off paperwork to get the insurance. NY Life was absolutely no help and you will find yourself talking to the SEC to figure it out.
I have been the executor of three estates. Two of those I did without an attorney. The actual paperwork wasn't all that time consuming. I had to make a number of trips to the Register of the Wills each time. The real work was going through papers and cleaning out the houses for sale. My fellow heirs went through everything with me and put the same amount of work cleaning out the house. I did not take executor compensation as I did not think it would be fair as the other heirs did nearly as much work as I did.
Your videos are extremely valuable thank you. I live in another country entirely but it's good to get some overall perspective on attitudes towards these things 👍 thanks
It’s a lot of work. An executer fee is standard in most wills. Only the greedy feel like executors shouldn’t get a fee.
I disagree. Some heirs do as much work on an estate as the executor. If you are left holding the bag to take care of everything with no help, yes... definitely take the compensation. If you aren't an heir or get a smaller inheritance, take the fee. However, if you are getting an equal share and your fellow heirs are knee deep with you cleaning out a hoarder house, it would be very wrong to take compensation if your fellow heirs aren't being compensated for their work. I say this as an executor that had a hoarder house to deal with. No way was I filing for compensation. It might have been legal and ethical, but it certainly would not have been moral.
Thank you for the info. I just subscribed. My mother passed last week and I am the executor. I probably will take the fee. It's not fun and I can't wait for it to be over.
Very helpful advice. Thank you.
Thank you so much for this information. My mom just passed away and I am the executor. You have helped me make a decision about whether or not to take a fee.
Thank you so much for your videos. Very helpful. There is also a yes then no scenario. That was me. My sister passed away in North Carolina and i live in MIchigan. It was a small estate but she had property. At first I thought I would take a fee because I drove from MIchigan to North Carolina a number of times, rented hotels, cleaned out the house, and did all the other things the estate needed. I thought initially that I deserved it, but then thought that I would just not take it.
I’m officially scared.
Thank you 😊
In the middle of this too... Thanks!
I was executor of my parent's estate. There was no conflict within the family and it all went very smoothly, but it really is a lot of work. Sold the house, collected on life insurance policies, filed the federal, state and estate tax returns and settled the outstanding debts before finally distributing the funds. I believe 2.5% of assets is excessive, but the executor should receive some compensation for the amount of work that they will be performing. To be honest, I'm not sure I would accept the executor position if it every came up again.
Same here. Going through it now. But I wouldn’t trust my sister to handle it, so here we are. And obviously, neither did my Dad.
AAAAA-BBBBB-CCCCC-DDDDD-EEEEE
That's easy for you say. You didn't have someone in the family try to steal the bank accounts.
The person who accepted the hassle, you should be financially compensated … Who works for free ?
@@vdog9291 Same. Exact. Scenario. I’ve hit a real land mine with my dad’s estate in Florida. Omg, I encourage everyone I come across not to accept an executor position. Just turn it all over to a law firm and let the experts handle it.
Thanks Paul. I'm so happy I've found your videos!
I’m happy you found them too 😎
Executor fees may be income to the executor, but they are also a deduction for the estate.
Yup, I went from scenario 1 to 3 because my sisters were being jerks to me.
My Father-In-Law was old fashion man in control attitude, he skipped over my wife (the oldest child) and let his drug-infested son be the Executor when he died. We never heard a single word on the house or bank, or anything of any money after selling the house. So we just figured it all went to drugs, he died at a crack party a few years later. But we were okay because he was the only one in the family with nothing. One time he showed me thousands of dollars in his pocket, I told him that money was to be split between the 4 kids & not just him, he put the money back in his pocket & regretted telling me anything, I told the three other kids. A few years later they were taking up funds to bury him.
Yes
My co executor and I went though how much I would pay in taxes inheriting the cash vs paying myself as income. It was better for me to not take a fee.due to the fact at the time I was making close to 300k a year. I miss making real money.
About 30 years ago my mother passed after father had already passed. My older sister and I were the designated executors in their (mom and dad) will. All family knew and agreed to the will that indicated that all 5 siblings would get equal share. Mom had shared with me verbally that I was too avoid lawers if at all possible. So none were contacted. The only two trouble spots were the pink slip for the car and the one bank account. The pink slip was handled well by my older sister by her holding mother's hand while still living but heavily sedated and scribbling a wiggly Letter X on the pink slip. It worked. The odd bank account that I wasn't co-owner of was more challenging. The experienced person we encountered at the bank branch told us we needed a lawyer. Mom's words guided me to be deceptive and I visited the branch multiple times until I found that person not present. Instead there was a recent hire that was very eager to help me close my mom's account. After that was smooth sailing. I took no fee, just my assigned share per the will. My siblings all got equal amounts to mine. Mom should be resting peacefully knowing we did all according to her desire. I'm a moma's boy still.
TLDR: Do what the deseased wants or suffer their wrath.
My sister who was the executor asked for EXTRA money from the estate like $15,000 extra. I get along with her but the other 2 siblings they have fought constantly for the last 3 years. In her application to the court she started off saying the other siblings did not help her and she feels she's entitled to extra money. She was just as guilty in the partaking of the fighting and it upset me because I felt she only wanted that money because of all the arguing and it was a way for her to once again get back at them. Anyhow the court denied her application and said the statutory $7,000 was sufficient. Plus her asking for extra was going against mom and dad's wishes on how they wanted the money distributed. It really takes a special kind of someone to ask for money that was meant for the other heirs. It changed my relationship with her and I am civil but I keep my distance now.
Great that you give perspective for the person naming the executor as well.
👍
I'm the PR of my brothers estate. He died in SC and its 5 percent. This a lot more work than I thought it would be.
Great video. I feel weird finding out about these videos so late on, but they are so helpful that I want to comment.
Thank you Sir
In Louisiana executors are guaranteed a percentage as a fee.
I know of an trust and estate of a farm, the personal representative/heir did not hesitate to accept the fee, because of problems experienced with other heirs. Problems continued and there were 4 off farm sisters, the hired hand/ son got the farm and was the personal representative, one sister refused to cash her check to show her disdain and the other sister complained to their brother that the estate could not be closed out with remaining checks only the find out the sisterhood scheme bit them in the behind and not everything could be distributed until she cooperated! LOL In the end the executor received about $30k, while the attorney got $47k.
I did not. Just took my share. My father left things very organized being a bean counter by trade.
If the IRS was aware of it (which is highly doubtful), I could see the IRS take the position he is attempting to assign income, which doesn't allow the assignor to avoid income tax liability for the amount.
I would say if they they carry out there function without undue delay, they should get compensation. Not everyone in that position acts expeditiously
100%
What is the compensation for a trustee that dishes out a million to heirs? TY
In the regular middle-class family, the fee should be clearly stated and agreed upon when the executor took on the responsibility.
Moving into a higher tax bracket is a non-issue from a financial perspective.
For most families, it is probably in the best interest to waive the fee if the executor will not be getting an equal or greater share of the estate.
If the executor is not a major or equal inheritor of the estate take the fee.
Now, if this person was taking care of Aunt Millie over the years the person should have been compensated while Aunt Millie was alive or something should be put in the will to compensate for the time spent.
There should be no rationalization like well I deserve it because I took care of her, I took time off, the others did nothing, etc. This is when you will have problems.
Having had both parents die over 20 years ago (oldest sister took care of the details after mom died) and my oldest brother in 2019, with greedy obnoxious vulturesque siblings that actively got in the way of even me dealing with getting him buried according to his wishes, I was so glad he had a will and made clear to at least a couple of us who his executor was going to be: 3 of my 5 remaining siblings went out of their way to drag their feet but eventually challenge the will in court, using our autistic sister as a puppet to also say she challenged the will (she’s never been someone of the right nature for this, it’s not her thing) which, if they hadn’t aborted at the last minute, would have resulted in our autistic sister for “challenging” the will, because of the no-contest clause.
Our brother died at 58 of congestive heart failure, forced to retire very early, and while he had a house with a mortgage that had some equity, he lived off of $1700/month with help from church. He willed each sibling $2500 cash and various things according to his choices, and a few others outside of the biological family got various things. Perhaps if the will had been expeditiously challenged and they had won, they might have gotten $10k each, tops, after all was settled, from the sale of the house, as he had no cash in the bank. In the process, due to their intentional delay, there easily went $20k in mortgage payments to the bank lost to all beneficiaries in theory, but because he did have enough equity in the house, it just stole it from the church, while none of the siblings involved could legitimately claim they helped him nearly as much as the church, or the family that the executor belonged to, besides the fact that none of us really had it be feasible to be the executor ourselves due to various reasons.
The executor had to deal with all their garbage besides the other stuff, and they fronted the mortgage payments, not that they could have sustained that much longer. There’s no way I’d expect a sane person to take on the role for free, and I’m not persuaded that the pay rate is enough in many cases. I’d worry if someone took it on for free: why would anyone really want to do that?
There are many more details left out, but those 3 siblings of mine, should I pre-decease them (could happen) I intend on them (that reminds me, I need to create a legal will) getting between all of them to fight over who gets either a money order for $9.99, or a money order for $6.66, or a penny. They will get nothing else as the plan. They’ve worked hard to demonstrate I want and need them to have no idea of my passing until after my funeral is complete, because they’d just as soon submit my body to the cheapest option available and keep the cash from my estate/insurance. All the rest of my siblings have no positive net worth, as far as I know, with the only one I’m still currently in communication with possibly having some, but that may soon be gone too: I have zero concerns for those 3 siblings in how their bodies and estates are disposed of, and their fate is at the mercy of those around them at that time: I will have zero contact with them for the rest of my life. If I have contact with them, that means I’m dead, and maybe they are too, and we are able to be in contact. I’m not going to go out of my way to cause them problems, they’re perfectly able to self-own: I just won’t give them access to causing me grief. They’ve made their beds, I’ll let them suffer the full consequences with zero assistance from me, without exception.
YES! Take it! I'm working on my sister's PR and I've lost Real Estate business because I'm working on her Estate. I will absolutely be taking the allowed amount to compensate for my time and lost business.
An executor should be able to get some compensation for their time, non-itemized expenses like gasoline for travel for filings (especially with today's high prices ! ), processing post death paperwork and handling finances, tax filings, processing bills, handling arrangements for the tombstone/marker, getting estimates on jewelry and handling any sale, distribution. You may not need to get the full statutory limit, but a smaller percentage might be fine and not create hassles from beneficiaries.
What is the difference of being Personal Representative of the estate and executor of estate.
Awesome content!
Thanks so much 😃
I haven’t seen this question addressed, am I required to file a tax return for the ESTATE ACCOUNT. Assets were bank account and sale of house all which are considered inheritance. No income generating assets. Do I contact SSA when the estate is closed? Also are executor compensation reported to IRS? Thank you
Thanks for these videos, Paul, but not sure I understand. You started off here by saying the Admin/Exec is "entitled to a 2.5% fee" (as if that exact figure were the law). Then later on you said the testator can set the fee either higher, or lower at their whim ?
Is a 401k with beneficiaries added in for inheritance tax?
I just say I’m the third one My father passed with farm ground sold under contract which so far I’m finding out the estate will have to be open for the duration of the contract. 5 yrs. I’ve also got a sibling reaching out only when she wants money even before probate period was over. Just not sure what to do
Do checking accounts, not titled in the name of the trust, avoid probate if Transfer on Death or Payable on Death paperwork is filed with the bank? If all accounts have beneficiary designations or TOD/POD’s, can’t the trust be avoided altogether? And wouldn’t probate also be avoided?
yes
How do you feel about Notary prepared wills?
Every state and DC has its own schedule of compensation. Where a lawyer or a realative would receive the same compensation, why not get the professional service for no more money. Having a lawyers as executor might also llimit some arguments.
My wife and I want to accept the executor compensation as we've had to pay out of pocket 800.00 for cremation, 120.00 for 10 Death Certificates, 1 year of home owners insurance, 6 months of property tax as well as other bills before we sold the house left in the will. This has been a total nightmare as my mother and her boyfriend/caretaker ran up serious debt while she was alive and he ran up debt on her cards after she passed. We'd like to get all the money we've spent on this as it's something I never want to go through again. Sadly enough my brother in Texas wants to leave my son his home, he has no will but Texas Law says next of kin inherits everything. I told him please make a will, he's fooling and poor with money management. I don't want to go through this again for any amount of money.
Here is what you do, and it works beautifully.
Create all the documents according to everyone's wishes and have him sign in front of a notary. To get it done you have to do it. Just be fair.
Your brother needs to understand even though the house might go to his son it will need to go through probate because anyone else that might have a claim is given the chance to do so. I believe Texas allows a transfer on death deed. It’s also called a ladybird deed or a revocable life estate. That way it’s right on the deed the house goes to the so and title is transferred to the son upon presentation of the death certificate. In addition he can put a payment on death (POD) on his bank accounts. My sons were on their father’s accounts. They walked in to the bank with the death certificate and walked out with the funds.
If there are two executors do they each get 2.5 percent ?
I'm in the UK. I've been an executor and an administrator. Here, a non professional is not allowed any fee or compensation. It took me 18 months to deal with both lots probates, including the sale of two houses. I was only an heir in one of the probate cases.
It's a shame that you were not compensated for your work! Yes, there can be extenuating circumstances but in general, I question why someone is quick to say or imply that an executor doesn't deserve to be compensated for their work. Is your lawyer doing his work for free????
I'm going to say that the only wrong answer is the last one. It's always better to deal with these things up front. But better still, have all this sorted out in the will. This is the best way to avoid any appearance of impropriety. And the best way to do this is to have a discussion with the person you plan to have as your executor while the will is being drawn up. Make certain the two of you are on the same page with this and everything else.
Sure. I think thats fair
In California, does a Successor Trustee under Probate or Trust law is REQUIRED to hire an an lawyer or attorney for an estate settlement, if so can you please direct me to that statue. Thank you.
I have a lawyer, and black and white proof of everything Ive done. Every cent. Didnt want the job, but got it. I think I should have a fee. Ive done everything and still doing it.
If your siblings are reasonable, they should approve fair compensation for your work.
Estate settlement works much better when executor does NOT accept a fee when they are also a heir
I'm almost at the end of the process, and while it's been a lot of work, I'm lucky to be in a no drama family. No fights, just cooperation and gratitude. So I preferred to waive
compensation. But you can bet if I were in a thankless situation I would have take the $ in a hearbeat!
whoops - heartbeat!
Well said!
Question:
If a court issue arises, is the court's expected level of care different, based on whether executor takes a fee or not?
No, the executor/executrix has the same legal obligations and responsibilities to the court regardless of the compensation is taken or not.
I believe i was but was a minor at the time my grandfather passed. How does that work? There is a bunch of funnt stuff thag happened when my gpa died i was only 3 but i remembwe him and the day he died and somehow some rhings were said i remmeber hearing that i dont know how bbut do remember anyways i need help and knowledge. also not to long after his death my oarenrs were in a custody battle over me and it wasnmentioned in court documebts that the petitioner-wife requested to change the name on the custodial account. Im guessing i was rhe beneficiary but why or whag reason wojld she request to chanfe rhe name?
Where does the executor's fee come from if the estate goes 100% to husband (my father) and the only money in Estate account is $260?
This is not a kind of heart question but basically a matter of planning your own tax situation if to take the compensation. (reads: your highest income tax rate versus inheritance tax rate debate)
The only 100% solution here is if you are the executor/executrix and the only heir in the will, you should never take the compensation.
In WI Exec fee is 2% of net value
Thanks for posting that WI info 👍
And it is very generous....
if no fights break out.
With 9 siblings we had zero issues between us.
In Florida, it's 3% and I am getting mine!
can a executor of my dad can take control of a Tenants in common deed that my parents hold for their home?
i live in Australia. Mine was easy. I am the executor to Mum's will. I have no siblings and there are no other executors and beneficiaries to the will.
Another option that you did not talk about is an executor taking a fee, but a reduced amount. I did it because I had to do everything including used my own funds to pay for living trust they all wanted me to do, but I paid the whole 1k out of my own funds. In addition I had to use all my funds to pay fir house ready for sale prep and cleaning out the house fir sale. You didn’t talk about any of this?
My fiduciary misappropriated my UTMA funds to a LLC and she put in $7000 of her own money to the LLC. She owns 1% while I own 99%. This is illegal in my state. Nevertheless, because she wasn't taking any fees I let her have her 1%. So therefore, that's her compensation. She is not getting any other compensation. And I will contest it since I had to sue her in the first place for not turning over my UTMA when I became the age of majority.
You should definitely pay your executer. You better hope they get it right the first time and don’t make a mess... Henry VIII fifth wife will tell you about it....
Have you ever seen a yes and then no for executor fee? I know my parents gave me a literal book of "stuff to do" when the time comes. I never want to be greedy but I imagine I would have to move to their state for months to figure it all out. They moved all the time and I will be chasing bits and bobs all over and mailing things to my brother... But hey if it is magically easy somehow I wonder if I could say no later in the process?? I'm just wanting to be fair. My brother would be ok with whatever, but I do not want legal trouble.
My friend has been an executor several times, and it involves a LOT of work and is a right royal pain in the arse, I have named her my executor, because she won't stand any bull from the beneficiaries. For that reason, I have put a compensation fee for her in my will. I, however did do the work, when my father passed away, but because he had a surviving wife (mum) and a will it was very straight forward, I did not need to get paid. I have been nominated as executor for a friends will, that is an entirely different kettle of fish, If he were to die tomorrow, although he has a will, and has told me there is an executor fee, his estate is such a complicated issue, that I can if I want, I can relinquish the fee, and hand it over to his lawyer, which if the poor sod snuffs it, I may just do.
If I name an Heir as the Executor they will pay tax on the Executor fee that I designate. If I increase the chosen Heir's % of the estate to match what I wanted them to receive in full ( Executor Fee plus inheritance) they get the entire amount tax free. Seems I need to rewrite my Trust around tax laws.
Four years, 6000+ miles, 350+ hours, house repair, etc. Yes, I am going to take compensation.
Take it. I am a middle child who had to be appointed because my other 2 siblings lived in different States in America. I live in the same neighborhood as my mother, her house is around the street from me, within walking distance.
Regardless, my younger brother, who is crippled, confined to a wheelchair and relies on public assistance, chose to challenge me in court.
He has NO MONEY, but wanted to be the executor of a 3200 square foot house sitting on 1.5 acres of land, with an out building. He is confined to a wheelchair and relies on military funding for monthly pain medication, and, least of all, he is trans. He wanted to challenge me in court. I'm taking the compensation.
Should executor take entire estate??
Very familiar with this family contesting issue, I am the victim with my oldest sibling..I need some advice on this issue, believe my brother is working on taking me off the will, my mother is beyond 🎉 understanding, she is living 93..my brother ..has not been forthcoming with anything, my dad passed away in 2007...His will is not being followed...
1) What happens if the executor doesn’t have money to pay bills before all is settled?
2) Can executors named in a trust eleven years earlier kick a second wife out of the home she bought from the sale of her house, if his name is on the deed? (Michigan)
...the second wife is excluded and receives nothing, according to a final paragraph.
- if so, is there a quick fix before his demise?
- is there a statue of limitations, if they don’t ask about the deed until too late?
go to the lawyer fast
I’ve learned since two years ago, when first posted, that Michigan law does protect a spouse even in the event of death before new documents- if the deed states “full rights to survivor”. Still, it’s best to have updated documents because if a spouse becomes incapacitated, documents such as Power of Attorney that are over five years old might not be honored.
It’s sad that families don’t honor and respect elders, and elders must spend a large portion of their fixed income on lawyers - even if they diligently had documents previously prepared.
If the executor is not a beneficiary of the estate (and I would argue that, ideally, he/she should NOT be a beneficiary in any estate he or she is administering), then of course they should be compensated for their service. If they ARE a beneficiary of the will, then the waters become far murkier.
You didn’t put in another scenario of taking maybe half of what you are allowed to take. I am taking less than half which after doing this job, which was much harder than anticipated, is fair .
Is executor compensation considered taxable income?
As I understand, yes.
The executors fee can throw you into another tax bracket, correct? So, it that may not be smart to take it. ......? Any thoughts?
If you're a beneficiary, maybe not. Generally, you will still make money even if you pay more taxes, and usually, you will have earned it. Probably best to work out the taxes with and without if your normal income is fixed and you can do that.
Pre to som podpalim bytovku aby sa zvýšila 😮
There is no superior executor with three in charge. All are equal until probate rules one incompetent. One Exacuator here is owed 156,000.00 dollars, the one that accepted the checkbook did so of his own free will. He is working for free until he pays me my money. And I will sue his ass with revenge given the opportunity. I saw about this place for over forty years.
I just wanted the gas and wear and tear on my vehicle paid. I knew I was entitled to over 20k but I just let it all go. My siblings were not nice to me, some jealousy, some stupidity but in the end I kept my dignity. It shocked me how ignorant they all got over some money. They put the money before our family and that is pathetic. I am ashamed of them.
Yes work. And I didn't ask to be it. And I'm not a beneficiary either.
I was disinherited, along with other siblings except for a younger sister, from my father’s will, but still named executor. Entire estate went to that sister (in the 7 figures range). Fat chance I’m taking on that task for the total benefit of her when our father for 8 years hadn’t spoken to me, his other children or even his grand kids. I just send a registered letter to the attorney stating I was not interested in assuming those responsibilities, never heard another word.
2.5% of inventory. You are not selling real estate. OMG. Set fee amount please
I was my dads POA. I took care of all his affairs for almost a year. He had dementia and was in the nursing home. At no charge. Now Im in charge of his will. I have taken care of EVERYTHNG. I have a sister in the will as well. Do you thing I should take a fee. Its a very small estate. I havent got anything out of any of it so far.
everyone deserves compensation for their work. I hope she is willing to pay you a fair wage for everything she wouldn't or couldn't do in the effort.
Take something fair
If you don’t you’ll never get anything else for your work
I'd wait to see what is actually left. There is no point in starting arguments over little to nothing. When you can see what is actually left then if there is a decent amount absolutely get paid. When my great grandfather passed there was only $1200 left to be split and everyone told the son taking care of everything to keep it.
DNA Law in your Shark Jaw?
Yes, no good goes unpunished! Take the fee!
deed
My father left only an insurance policy and the lawyer took 2.5% of that.
I thought that the beneficiaries of an insurance policy get paid without getting a lawyer or going through probate? Was I wrong about that or is this a state-to-state situation? My mother-in-law left an estate, but she also had life insurance that was paid to the beneficiary immediately upon her death - and that policy did not have to go through probate at all.
You could have called the insurance company yourself and asked them what you needed to do as your father’s beneficiary before you hired a lawyer. I’m sorry you lost that money to your lawyer.
Why do you keep saying that by going with a living trust you can skip all the things that come with probate. You still have to pay off all the bills owed, still have to advertise in the paper for any leins on the dead person, still have to hire a lawyer to make sure everything is done right, still have to file the last state and federal income tax, still have to provide all the banks, brokage accounts with a death certificate. At least with probate when a Judge rules that everything has been done right at closing of the estate no one can come back on you. If you do something wrong with a trust you leave yourself open to lawsuits to come.
What is the correct spelling of your last name?
I have been a caregiver for my parents for four years. Dad passed but at one point both parents were in Hospice. I moved them near me to assisted living, I cleaned out their house (they were hoarders) I have ben POA, taken care if all their needs from paying their bills to taking care if medical needs. I am at the facility nearly every day.
I will not take an executor fee. It has been so much work and during Covid I was allowed in the facility because Mom was put in Hospice. I spent at least 6 hours a day wearing a mask taking care of them.
In my opinion all the work has been done, clearing up my Moms estate will be easy because I hired a lawyer when my Dad died. All the hard work has been done and continues on
What is the title of the lawyer you hired? We hired an Elder Attorney to handle all the Eatate Planning. However, they give no advice or help.
@@marinettechavers8063 I hired an Estate Planner Lawyer. He was wonderful
I should add, the help you get depends on the lawyer you hire. When my parents gave me POA, we did Trusts etc with their lawyer the guy was not amazing. I hired a small family owned firm near me when Dad passed and it was a world of difference. He cared and was so sympathetic. He took great care in the wording of documents, he came to the facility so my. Mom could sign the documents, there was a fee. He did a pour over will and updated the trust agreement between me and Mom.
My husband and I updated our wills etc. with him because he was so amazing.
My parents named me as an executor on their will. I have decided to ask my 3 brothers if they object to me taking a fee. If any or all do object I will waive my executorship and transfer it to one of them.