Executor fees are set by law. The family does not have to sign off on them.
There is a distinction between money the executor receives as compensation for administering the estate and money the executor receives as an inheritance. The fees are taxable income, the inheritance is not.
The executor's fees in Florida may vary. However, generally the executor's fees in Florida are around 1.5-3% depending on the amount of money.
I practice in California. I will tell you how it works generally in CA. In CA, the deceased names the executor in their will. If the named executor declines, then any other interested person can petition the court to be named executor. The named executor has 30 days after notice of the death of the decedent or they can be deemed to have waived the right to appointment as personal representative. If there is no will/executor, the public administrator in the county where the estate will be administered will petition the court to be named as the public administrator (i.e. executor). The public administrator, as well as the attorney for the public admininstrator, is entitled to the same statutory fees as a private executor. In CA the fees are set forth as a tiered percentage of the gross estate value. For an estate valued at $200k, the percentage is 4% of the first $100,000, 3% of the next $100,000, and 2% of the next $800,000. As to whom to select, there are pros and cons as you probably guessed. A family member may know the family better, and may know the deceased person's wishes better. A family member may also keep administrative fees down. But, a family member may not be experienced with handling estates, or may not be impartial. A public adminstrator may not know the family as well, may incur higher administrative fees, but has experience in adminstering estates, and has no emotional bias.
Most states have executor fees of 2-5%. Connecticut law does not state these fees, and only states what is reasonable compensation.
What are executor fees in the state of Colorado?
No, they do not approve executor fees. The probate court will do that and in most cases it is limited by law.
2%
Fees received by an executor are not classified as inheritance and therefore are not subject to an inheritance tax, but they are classified as income, and are subject to income tax.
Executor fees are considered income. As such they are subject to income tax at a federal and state level. Depending on the situation, it may be beneficial to waive the fees if the executor is inheriting a part of the estate. Consult a tax attorney or CPA.
Executor's fees are addressed under the probate laws in each particular jurisdiction. You need to check the laws in yours.Executor's fees are addressed under the probate laws in each particular jurisdiction. You need to check the laws in yours.Executor's fees are addressed under the probate laws in each particular jurisdiction. You need to check the laws in yours.Executor's fees are addressed under the probate laws in each particular jurisdiction. You need to check the laws in yours.
They are income for the executor. Yes, they are taxable.
As a general rule, executor compensation is in addition to fees. For example, if the executor pays $400,000 in lawyers' fees, as an expense of the estate, it has no impact on the claim for a percentage as a fee. Many family executors or administrators waive any fee and consider it a privilege to assist in interpreting the intent of the decedent.