It is normal for an executor of a will to get a monetary share of the estate?

Question

My aunt will receive $7000 for being the executor of my grandmother's will. I have spoken to many people and no one has ever heard of this happening. I live in New York state.

Answer 1

Only if she is named in the will.

Answer 2

There should be an Executor of the Will who would be entrusted with the responsibility of ensuring that the assets are distributed according to the provisions of the Will. Sometimes more than one Executor may be required to execute the Will. The Testator (person making the Will) should take the prior consent of the person whom he or she wishes to name as the Executor.
In order to save time, money, and taxes, to simplify the settlement of an estate, and to give an executor flexibility settling an estate,it is generally recommended that a Will grant to an executor several powers or directions to perform some acts without first securing court permission to do so.
The executor is your personal representative of your estate. The Executor has a number of major responsibilities such as (1) administering the estate and distributing the assets to your beneficiaries, (2) making tax decisions, (3) ensuring that all insurance proceeds are received and accounted for, and (4) filing necessary tax returns.
The executor can be anyone of your choice. Usually, clients choose a spouse to be their executor with a son or daughter to be the alternative executor. If choosing a spouse or child as executor does not meet your needs, then anyone can be chosen.
For whatever reason that you may have, your will can affirmatively exclude someone from receiving their “share” of your estate. Normally the executors do not take away the share of the estate

Answer 3

Is your aunt a lawyer? I have heard of people collecting a fee from being an executor of a will because many times it is a lawyer doing the work. However maybe your grandmother could not hire a lawyer so she appoint her daughter (your aunt) instead. However your aunt collecting money may have NOTHING to do with a fee for being the executor, she is the daughter of your grandmother, correct? Therefore she was probably left some stuff and money or else it is split between all children anyway so she is entitled to some money.

Answer 4

New York State law has a specific (and quite generous) provision for the payment of executors' commissions. Not so long ago I was paid nearly $60,000 to act as executor for a large estate. (That was taxable to me as income; the estate was taxed at a rate of 45% with my commissions deductible, so really it only cost the heirs half of what I was paid. And as part of my job I got the tax bill reduced by $180,000, which took months of work and lots of research, back as far as 20 years previously.)

I've put a link below to the statutory provision that fixes the executor's fees, NY Surrogate Courts Practice Act §2307.

Often a relative will work as executor for free, waiving her or his fees. But a professional -- a bank, for example -- will never do so. And sometimes an executor will be aware that the decedent appointed her or him with the knowledge that s/he would be paid. If there is a lawyer involved, that lawyer may do all the work, or maybe not. The executor is a trustee, responsible for collecting funds, selling assets and investing them until the IRS and the Department of Taxation and Finance agree on the tax due.

Now if your aunt got $7,000 this was not a taxable estate -- it was probably worth only $150,000. Perhaps in such circumstances an executor/rix who is a relative might waive the fees. But she can't be forced to do so, and if I were you I would not risk a family dispute by pressing the issue. Your grandmother's lawyer probably explained to her the implications of what she was doing.

Good luck.

Answer 5

If she is named Executrix of your Grandmother's Will, your Aunt is entitled to a very small percentage of that which goes into and out of the Estate. (i.e. 1-2%) Go to the Surrogates' Court in the County in which your Grandmother lived and get a copy of the Will. That will state whether or not your Grandmother wanted her Executrix to take a percentage. Most County Surrogates in New York State have a staff which can, and will, help you understand how this works. Just ask them.
Please keep in mind that being an Executor/trix of a Will is one of the most thankless jobs in the world. Consider that you are questioning whether or not she should get "paid" for all her work. Ask the staff to show you all the filings that are required in an Estate of this size - they'll show you your Grandmother's file - it's a Public Record - then question whether or not your Aunt is entitled to some compensation.
This response is not, under any circumstances, to be considered specific legal advice. If Surrogates isn't good enough for you - hire a lawyer and fight it. You'll most likely lose - and I'll bet you NEVER have a comfortable relationship with your Aunt no matter what the outcome.
I have cousins who still don't speak to me, 20 years after my Grandfather's death, because I BOUGHT his car from the Estate. Everybody knew I was supposed to get it, but I paid for it just to be safe. This is the most minor of the horror stories I could relate to you. It's not worth it. Your FAMILY is most important. Would your Grandmother want you fighting over this? Or are you just out for some money?
LET IT GO!! She deserves every nickel.

Answer 6

Yes, that is completely normal. No one you know has heard of this because the vast majority of people are completely ignorant of estate planning and estate distribution. Heck, the vast majority of people are just plain ignorant. But that's another matter for another day.
At any rate, it will vary some state by state. But usually the amount the executor can get maximum by set by state law and it is usually set as a small percentage. Your grandmother must have had a chunk of change for her to get $7000.
Anyways.......if you're beefing about her getting $7000 then you guys have probably been making things miserable for her throughout this process. She's probably earned it with the headaches. Usually executors start out not intending to take their fair share, but by the time they end up putting up with everybody's BS they go ahead and take their maximum share when it comes to the end of it.

Answer 7

The executor can put alot of time and effort into executing a will. Much of this goes unnoticed by others, yet needs completed...from legal paperwork to finding relatives. This is on top of otherwise normal lives and work. It is therefore customary for the executor to receive some payment for these services from the estate...usually monetary.

Answer 8

The executor is almost always paid. There is an increasing fee based on the size and complexity of the estate.

Being an executor is a big responsibility, not to be taken lightly. Nobody should expect to have that work done gratis.

Answer 9

Yes it is normal and legal. An executor does a lot of work and is entitled to a percentage of the estate as payment for services rendered.

Answer 10

Yes. Most states have a statute setting the executor's fees. The executor may waive the fee & often does if he or she is also a beneficiary.

Answer 11

Its not normal but an executor does not get any share of the estate.