How Much is an Estate’s Executor Paid?
By Schneider Rasche LLC, Oregon
One of the most important estate planning documents is a will – not only does it distribute your property when you die, but it names a guardian for your children and an executor for your estate.
An executor has many important duties during probate, but what do they get in return?
One of the most important estate planning documents is a will – not only does it distribute your property when you die, but it names a guardian for your children and an executor for your estate. An executor has many important duties during probate, which is the legal process that administers your estate. But what do they get in return?
An executor of an estate, also called a personal representative in Oregon, is normally paid for their work. Each state has laws that govern how much they are paid. In Oregon it is based on a percentage of the estate. The beneficiaries of the estate do not pay the executor, but the fee is taken from the estate itself. The executor is paid before property is distributed to the estate’s beneficiaries.
Often, an executor must file paperwork with the probate court demonstrating that the bills have all been paid and that no new bills will arrive. The court allows the executor to receive their fee and distribute the rest of the assets only when it is convinced that the executor has finished settling the estate's debts and any estate litigation or will contests are settled.
In Oregon, the law states that the executor’s compensation is based on the following:
• Probate property, including income and gains:
(A) Seven percent of any sum not exceeding $1,000.
(B) Four percent of all above $1,000 and not exceeding $10,000.
(C) Three percent of all above $10,000 and not exceeding $50,000.
(D) Two percent of all above $50,000.
• Non probate property: One percent of the property, exclusive of life insurance proceeds, not subject to the jurisdiction of the court but reportable for Oregon inheritance tax or federal estate tax purposes.
An estate planning lawyer can work with you to create an estate plan that not only meets your needs, but one that addresses the specifics, such as probate fees, executor’s fees and estate taxes.
ABOUT THE AUTHOR: Richard B Schneider
Experienced estate planning attorneys Portland OR of the Law Offices of Richard B. Schneider LLC offers estate planning and business planning resources to residents of Portland OR.
Copyright Schneider Rasche LLC
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.For specific technical or legal advice on the information provided and related topics, please contact the author.