Can an executor be paid for their work?

Yes. In most states an executor is entitled to reasonable compensation from the estate for the work of administering it, unless the will says otherwise or the executor waives it. How the amount is determined varies: some states use a percentage of the estate's value, others use a 'reasonable fee' standard based on the time and complexity involved.

How much does an executor get paid?

It depends on the state and the will. Percentage-fee states set a sliding scale based on the estate's value; reasonable-fee states base it on the work actually done. The will can also specify a fee or none at all. Because the rules differ widely, check your state's statute or ask the probate court or an attorney.

Should an executor take the fee?

It's a personal decision. An executor fee is taxable income to the person who receives it, while an inheritance generally is not. If the executor is also a beneficiary, taking a fee can sometimes mean paying income tax on money they could otherwise receive tax-free as inheritance. Many family executors weigh the work involved against this tax difference before deciding.

Can an Executor Be Paid? How Executor Fees Work

Being an executor is real work — sometimes a year or more of it. So a fair question is: do you get paid? In most cases, yes. An executor is generally entitled to reasonable compensation from the estate. But how much, and whether you should actually take it, has a few wrinkles worth understanding.

Yes — executors can usually be paid

In most states, an executor (or administrator) is entitled to reasonable compensation from the estate for administering it, unless the will says otherwise or the executor chooses to waive the fee. The pay comes out of the estate before distributions to beneficiaries, and it's treated as an estate expense.

How the fee is calculated

States generally take one of two approaches:

Percentage of the estate. Some states set a statutory sliding scale — a percentage of the estate's value, often decreasing as the estate gets larger.
"Reasonable" fee. Other states base it on the time spent and the complexity of the work, rather than a fixed percentage.

On top of that, the will itself can specify a particular fee, or direct that the executor serve without compensation. Because the rules vary so much, the right figure depends entirely on your state and the will.

"The estate's value" usually isn't the same as the fee base. Many states calculate percentage fees on specific categories — like the income and property the executor actually handles — not simply the headline net worth. This is one reason a clear, reconciled accounting matters: it shows exactly what passed through the executor's hands.

The tax catch most family executors miss

Here's the part that surprises people: an executor fee is taxable income to the person who receives it. An inheritance, by contrast, is generally not taxable income to the beneficiary.

So if you're both the executor and a beneficiary — common in families — taking a fee can mean paying income tax on money you might otherwise have received tax-free as inheritance. For a sole beneficiary who is also the executor, taking a fee often makes little sense. Where there are multiple beneficiaries, a fee can be a fair way to be compensated for doing far more work than everyone else.

Should you take it?

There's no universal answer, but executors usually weigh:

How much actual work and time the estate required.
Whether they're also a beneficiary (and the income-tax-vs-inheritance difference above).
Family dynamics — sometimes waiving the fee avoids friction; sometimes taking it is simply fair.
Whether the court must approve the fee (in many places it does).

Document the work either way

Whether you take a fee or not, keep a record of what you did and the expenses you paid. Executors are also typically entitled to be reimbursed for out-of-pocket costs, which is separate from compensation. A clean log of your time and costs makes a fee request easy to justify — and keeps it from looking like an unexplained withdrawal in the accounting beneficiaries may review.

Keeping the estate's books straight?

EstateLedger turns the bank statements into a reconciled, traceable accounting — every figure, including your fee and reimbursements, tied to its source. On your own computer, nothing uploaded. Reviewing is free; pay only when you export.

Download EstateLedger — free Windows · import, reconcile and review for free · $59 only when you export

Sources

This guide was written from the public, primary sources below. They set out the general rules; they are not a statement of the law of your state and they do not address the facts of your estate.

General information, not legal or tax advice. Executor compensation rules, fee calculations, court approval, and tax treatment vary by state and by individual circumstances. Confirm what applies to you with the probate court, a qualified attorney, or a tax professional before acting.

← Back to all guides