Does The Personal Representative Get Paid?
Being named as a personal representative on a will is often difficult for those concerned. The named executor wants to do the right thing by the decedent, but the thought of having to deal with all aspects of the deceased’s estate and liabilities can seem daunting, and quite rightly. Some people worry that they will be unable to deal with the issues due to lack of knowledge and experience. However, you will usually have the assistance of a Probate Officer or attorney and an accountant if and when required.
Some people that have been named as the personal representative or executor on the will may feel that they do not have the time to deal with the process.
An executor’s work can be difficult and very time-consuming, and the larger the estate and number of liabilities, the longer the whole process is likely to take.
Juggling this with looking after kids, working long hours or studying for exams can be extremely difficult, and it you feel you do not have the time to commit then it may be advisable to step down as executor and let the second named person or the courts deal with the will.
Another reason that some people worry is because of money. Of course, all the phone calls, possible travelling, producing documentation and maintaining the assets of the deceased costs money as well as time.
However, all expenses incurred by the personal representative will be refunded. The courts have to approve reimbursement of out of pocket expenses but this is simply routine. Therefore, you will not be left out of pocket from dealing with the estate of the decedent as an executor or personal representative.
In addition to out of pocket expenses, the executor or personal representative will also receive a fee for dealing with the will. This can vary from state to state, and again is subject to approval by the courts along with any out of pocket expenses.
However, the general compensation received by an executor is two percent of the probate estate of the decedent. Obviously, if the decedent left a large estate and valuable assets, then this could be quite a hefty fee.
Those that are named as major beneficiaries on the will and will be receiving a hefty sum of valuable assets anyway often do not charge the fee for dealing with the will as executor or personal representative.
Another thing to bear in mind is that, if you are also the sole beneficiary as well as the executor or personal representative of the will, then it will not make sense for you to charge the fee against the estate. Firstly, since you will be receiving the estate anyway you will simply be charging yourself. Secondly, any money you receive from the estate will be tax-free.
However, any money you receive by way of a fee will be taxable, therefore by charging a fee against the estate as sole beneficiary and executor, you will simply be paying unnecessary tax.
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2008-04-07 12:21:18
Probate is the legal process of settling a deceased person's estate, which includes paying creditors or debts, and distributing the assets of the deceased to the correct beneficiaries. It is a complic ... [read more]