Understanding Executor Fees

How are they calculated?

Executors fees are payable on the gross value of an estate. The maximum rate is regulated by law at 3.5% of the gross value of the estate. The rate can be negotiated depending on the size and complexity of the estate. Large institutions do not negotiate the rate. This is another reason to make use of the services of an attorney or accountant with deceased estate administration experience

Who pays them?

The estate pays the executors fee. If there is a liquidity problem, then a specialist attorney or accountant will let the heirs pay off the executor’s fee so that an asset does not have to be sold. This must be negotiated with the heirs. Again, large institutions are not empathetic and will not negotiate – they will sell whatever has to be sold in order for them to get their fees.

When are they paid?

The executors fees are payable right at the end of the matter after the Master has granted permission to distribute. For the executor to take their fee before this, is an offence.

To find out more about Executor Fees or advice on managing a will, contact us.