Episode Summary

In this episode, Jenna and Gordon tackle a sometimes controversial topic: executor compensation. Many executors feel hesitant about charging a fee, fearing family pushback or concerns about fairness. But executor work is complex, time-consuming, and carries personal liability—making compensation not just reasonable, but essential.

They break down the legal entitlement to executor fees, discuss common misconceptions, and share practical strategies to ensure executors are fairly compensated while maintaining transparency with beneficiaries.

Key Takeaways

✔ 1. Executors Are Entitled to Compensation

• Acting as an executor is a job with legal duties and financial risk.
• Even if an executor declines a fee, out-of-pocket expenses should be reimbursed.

✔ 2. Compensation Should Reflect Workload & Liability

• Executors manage estate assets, taxes, debts, and legal obligations.
• Mistakes can lead to personal liability—adding to the responsibility.

✔ 3. The Market Standard: 2% - 5% of the Estate

• Fees should be fair and reasonable based on estate size, complexity, and time spent.
• Smaller, complex estates may justify higher percentages, while larger estates may require a lower percentage.

✔ 4. Keep Track of Your Time & Expenses

• Log every task completed and time spent for justification.
• Professional records help support claims and avoid disputes.

✔ 5. Executors Shouldn’t Decide Compensation Too Early

• Many underestimate the workload—wait until estate tasks are nearly complete before determining a fair fee.

✔ 6. Present Compensation with Final Accounting

• The best time to request fees is when providing final financial reports and distributions to beneficiaries.
• Transparency ensures beneficiaries understand the work involved and the fairness of the fee.

✔ 7. Legal & Professional Guidance is Key

• Lawyers and accountants can validate fair compensation.
• Having a professional opinion reduces disputes with beneficiaries.

Final Thoughts

Being an executor is a serious responsibility, and fair compensation ensures the role is properly fulfilled. By keeping detailed records, communicating openly, and seeking professional advice, executors can confidently request fair and reasonable compensation.

Executors—don’t sell yourself short! 💪

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Hosts:
Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
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Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
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