In the state of WI. does the executor of an estate have to recieve financial compansation?

Answer 1

An executor is allowed to receive compensation, and it is an administrative expense. However, often the executor is also a beneficiary, and in that case the executor may choose to *waive* his or her right to receive an executor's fee. The reasoning is that the income tax due on the fee income would be higher than the inheritance tax on the same amount.

The Wisconsin Estate Tax will sunset on January 1, 2008, so that may not be a problem in the future.

It is a matter of choice of the executor. I am sure other heirs may prefer that he not take a fee so that the distributable estate is larger and everybody else gets a bigger piece of pie. However, there can be a lot of work associated with administering an estate, and the executor may feel justified to charge a fee.

Answer 2

Subject to the approval of the court the personal representative shall be allowed for his or her services commissions computed on the inventory value of the property for which the personal representative is accountable less any mortgages or liens plus net principal gains in the estate proceedings at a rate of 2% or a rate that the decedent and the personal representative, or the persons who receive the majority interest in the estate and the personal representative, agree to in writing; and such further sums in cases of unusual difficulty or extraordinary services as the court determines reasonable. If a personal representative is derelict in duty, his or her compensation for services may be reduced or denied.