How Much Does an Executor of an Estate Typically Get Paid in Farmington?

How California sets the executor's fee

California spells out executor pay in the Probate Code. The law calls it statutory compensation. It is a tiered percentage of the estate, with a higher rate on the first part of the value and lower rates on each part after that.

That means a larger estate pays a bigger fee in total, but a smaller share of its value. Nobody has to haggle over it. The formula does the math, and the judge signs off on the final number.

The probate attorney is usually paid by the same formula, as a separate fee. So in a typical California probate, there are two fees of about the same size coming out of the estate, one for the executor and one for the lawyer. Your attorney can run the exact figures for your estate.

What the fee is based on

The fee is figured on the estate's value as listed in the inventory and appraisal filed with the court. In California, a probate referee appraises most of the property, including the house. That appraisal matters a lot for the fee.

Here is the part that surprises people. The fee is based on the gross value, not what is left after the mortgage. If the house is worth a lot but still has a big loan on it, the fee is still figured on the full appraised value. Gains from selling property during probate get added in, and losses get subtracted.

• Real estate, at its appraised value
• Bank and brokerage accounts that go through probate
• Cars, personal items and other property in the estate
• Gains on sale, plus income the estate takes in
• Assets that pass outside probate, like most life insurance and joint accounts, usually do not count

Extra pay for extra work

Some estates take a lot more than routine work. The law allows the executor to ask the court for what it calls extraordinary compensation. This is on top of the regular fee, and the judge has to approve it.

Work that can qualify includes handling a lawsuit, running a family business, dealing with tax problems or managing a property sale. The executor has to show what was done and why it went beyond the normal job. Keep notes, dates and receipts from day one. It makes that request much easier to support.

Separate from any fee, the executor can be paid back for real costs. That covers things like court filing costs, utilities on a vacant house, insurance, locks and travel to deal with the property.

When the executor actually gets paid

Most executors are paid near the end of probate. The fee is usually requested in the final petition, and the court approves it before the estate is closed and the rest goes to the heirs. In some cases the court will allow part of the fee earlier, but you need an order first.

Do not pay yourself out of estate funds without court approval. That can get an executor removed and can mean paying the money back. If the estate needs cash for bills, talk to your attorney about the right way to handle it.

For a lot of estates, the house is the biggest asset. Until it is sold, there may not be enough cash to pay fees or split the estate. That is why the sale timing often sets the pace for everything else. In the Central Valley, a vacant house can also sit through a hot summer with the power and water still on, which keeps costs coming in while the estate waits.

Should you take the fee or waive it

You do not have to take the fee. Many family members who serve as executor waive it, especially when they are also one of the heirs. Here is why: an executor fee is taxable income, but an inheritance usually is not. If you would get the money as an heir anyway, waiving the fee can leave more in your pocket after taxes.

It is different if you are not an heir, or if the work will be heavy and the other heirs are not helping. Then taking the fee is fair. That is what the law is for. Sit down with a tax preparer and your attorney before you decide.

• The will may set a different fee, or say the executor serves without pay
• An executor can turn down the will's amount and ask for the statutory fee in some cases, with court approval
• Co-executors usually split one fee, not two
• Write down your decision and share it with the heirs early to avoid hard feelings