Serving as executor for someone’s estate plans is a lot of work. You can definitely simplify the process with a free custom digital checklist of your duties that you can get here on this site. That said, it makes sense to have a potential interest being compensated.
You have the power of attorney for the deceased persons estate. You need to handle their real estate, settle any estate tax, communicate with their loved ones, and hire a law firm for legal advice, among other things.
So that brings the question…
Do/Should You Receive Payment for Serving as Executor?
There’s nothing wrong with accepting compensation for handling an estate. You are entitled to receive compensation for your work. In some cases, it will be stated in the will, in others it will be based on the state of residency of the will writer.
If you need more help deciding if you should accept compensation for serving as executor, read this guide.
If you’d like a bit more (free) help understanding the estate settlement process, you can answer a few simple questions and get a free custom executor plan here on Executor.org.
And, here are the executor fees by state, so you know how much compensation is reasonable.
Executor Fees by State Interactive Map
Click on your state in the map below to see the executor fees you’re entitled to:
Frequently asked questions
Are executors entitled to be paid?
Yes. In every US state, an executor can be compensated for the work of settling an estate. The amount is either set by the will, set by state statute, or left to what the probate court considers reasonable. Accepting the fee is a choice — many family-member executors decline it, especially when they're also beneficiaries.
How much do executors typically get paid?
It varies widely based on the state, the size of the estate, and the amount of work involved. In statutory-fee states, the number is a percentage of the estate that follows a schedule set by law — often somewhere between 2% and 5% of the gross estate. In reasonable-compensation states, the court decides based on hours worked, complexity, and local norms. Small estates can pay a few hundred dollars; large complex estates can pay tens of thousands.
What's the difference between statutory-fee states and reasonable-compensation states?
Statutory-fee states set the executor's fee by law, usually as a sliding percentage of the estate's value. You calculate the fee from a formula — there's little room for the court or beneficiaries to argue. Reasonable-compensation states leave the fee to the probate court's judgment. The court looks at what other executors in the area have received for similar work, considering estate size, complexity, and time spent.
What if the will already specifies executor compensation?
The will controls. If the will names a specific dollar amount, percentage, or hourly rate, that's what the executor gets — even if it's more or less than the state's default rules would allow. Executors can accept the amount in the will or, in most states, decline it and request the statutory or reasonable fee instead.
When does the executor get paid?
Usually toward the end of probate, after debts and taxes have been paid but before final distributions to beneficiaries. The fee is treated as an administrative expense of the estate and comes out of estate assets, not out of anyone's inheritance directly. Some states allow interim payments for long-running estates; check local probate rules.
Can beneficiaries object to executor fees?
Yes. In reasonable-compensation states, beneficiaries can formally object to the fee amount when the executor files a final accounting with the court. The judge decides. In statutory-fee states, the calculation is fixed by law, so objections are limited — but beneficiaries can still challenge whether the executor did the work claimed, or whether extraordinary services justify additional compensation.
Are executor fees taxable income?
Yes. The IRS treats executor fees as ordinary income, not as inheritance. That means the fee is subject to federal and state income tax at your regular rate. For a non-professional executor (a family member, not a lawyer or bank trustee), it's not subject to self-employment tax. Inheritances you receive as a beneficiary are separate and taxed under different rules.
Should you take the executor fee if you're also a beneficiary?
It depends on the math. Executor fees are taxed as ordinary income; inheritances generally aren't. If you're a beneficiary in a state without an estate or inheritance tax, taking the fee reduces what you'd otherwise inherit tax-free. Many family-member executors waive the fee for that reason. If you're not a beneficiary, or the estate is large enough to face estate tax, taking the fee usually makes sense.
Disclaimer: The information contained herein is not intended to be legal advice. Instead it is a guide of where to start when looking for executor fees in particular states. Some states allow executor compensation mentioned in a will to govern, others do not. Many of the laws governing executor compensation are complex and constantly changing, and we may have left out specific exclusions and exceptions. You should consult an estate attorney or the probate court for guidance.
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Written by
Patrick O’Brien
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