How much to pay the executor

By James Dolan | June 6, 2014 | Last updated on June 6, 2014
3 min read
  • Responsibility

    Disbursements with complicated instructions, or assets which if disposed expose the executor to personal liability, entitle him to more.

  • Time spent

    The more time the executor spends performing duties, the more compensation he gets.

  • Skill and ability

    If the estate requires the executor to draw upon special skills or abilities, he gets more compensation. Conversely, if the estate is so simple that anyone could administer it, he gets less.

  • Results

    Executors who add value to an estate or make savvy asset management decisions are generally entitled to more compensation.

  • Warning

    Executor compensation is considered taxable income. So, the testator could assign the executor a gift from the estate (generally not taxable) instead.

    James Dolan is a Vancouver-based financial writer.

    James Dolan

    • Estate size

      Usually, the larger the estate, the more compensation the executor gets.

    • Responsibility

      Disbursements with complicated instructions, or assets which if disposed expose the executor to personal liability, entitle him to more.

    • Time spent

      The more time the executor spends performing duties, the more compensation he gets.

    • Skill and ability

      If the estate requires the executor to draw upon special skills or abilities, he gets more compensation. Conversely, if the estate is so simple that anyone could administer it, he gets less.

    • Results

      Executors who add value to an estate or make savvy asset management decisions are generally entitled to more compensation.

    Warning

    Executor compensation is considered taxable income. So, the testator could assign the executor a gift from the estate (generally not taxable) instead.

    James Dolan is a Vancouver-based financial writer.