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Does the Personal Representative
Get Paid?
Being named as a personal representative on
a will is often difficult for those concerned.
The named executor wants to do the right thing
by the decedent, but the thought of having to
deal with all aspects of the deceased’s estate
and liabilities can seem daunting, and quite
rightly. Some people worry that they will be
unable to deal with the issues due to lack of
knowledge and experience. However, you will
usually have the assistance of a Probate Officer
or attorney and an accountant if and when required.
Some people that have been named as the personal
representative or executor on the will may feel
that they do not have the time to deal with
the process.
An executor’s work can be difficult and very
time-consuming, and the larger the estate and
number of liabilities, the longer the whole
process is likely to take.
Juggling this with looking after kids, working
long hours or studying for exams can be extremely
difficult, and it you feel you do not have the
time to commit then it may be advisable to step
down as executor and let the second named person
or the courts deal with the will.
Another reason that some people worry is because
of money. Of course, all the phone calls, possible
traveling, producing documentation and maintaining
the assets of the deceased costs money as well
as time.
However, all expenses incurred by the personal
representative will be refunded. The courts
have to approve reimbursement of out of pocket
expenses but this is simply routine. Therefore,
you will not be left out of pocket from dealing
with the estate of the decedent as an executor
or personal representative.
In addition to out of pocket expenses, the executor
or personal representative will also receive
a fee for dealing with the will. This can vary
from state to state, and again is subject to
approval by the courts along with any out of
pocket expenses.
However, the general compensation received
by an executor is two percent of the probate
estate of the decedent. Obviously, if the decedent
left a large estate and valuable assets, then
this could be quite a hefty fee.
Those that are named as major beneficiaries
on the will and will be receiving a hefty sum
of valuable assets anyway often do not charge
the fee for dealing with the will as executor
or personal representative.
Another thing to bear in mind is that, if you
are also the sole beneficiary as well as the
executor or personal representative of the will,
then it will not make sense for you to charge
the fee against the estate. Firstly, since you
will be receiving the estate anyway you will
simply be charging yourself. Secondly, any money
you receive from the estate will be tax-free.
However, any money you receive by way of a fee
will be taxable, therefore by charging a fee
against the estate as sole beneficiary and executor,
you will simply be paying unnecessary tax.
All About Wills
What If Someone Contests a Will?
What Warrants a Valid Will Contest?
What Are the Legal Requirements for a Will?
What is Probate?
Is Probate Necessary?
Can Probate be Handled Without Using the Services of an Experienced Probate Lawyer?
Who is Responsible for Handling the Probate Process?
What Does the Personal Representative Do?
Does the Personal Representative Get Paid?
What If a Personal Representative Does Not Perform Their Duties Properly? |
